The Oligarchs’ Grip: How Central Banks and Politicians are Ensuring the Rich Get Richer, and the Poor Get poorer
The insidious forces of central banks and politics have led to a world where a select few benefit from the system, while the rest are left to struggle. The first half of 2024 has seen the mega-caps, led by the behemoth Nvidia, soar to unprecedented heights, while the rest of the market is left in the dust.
Despite forecasts of a rate-cutting frenzy, the reality is that only a few privileged institutions have access to the cheap credit, while the rest of the market is forced to struggle with high borrowing costs. Meanwhile, the likes of Nvidia and the rest of the Magnificent 7 continue to reap the rewards of their monopoly on the market.
MSCI’s world stocks index has clocked up a paltry 11% since January, a meager gain that is only enough to keep the illusion of growth alive. Meanwhile, the likes of chip champ Nvidia have seen their stock price leap by a whopping 150%.
“Thirty percent of the S&P’s returns this year have come from Nvidia alone,” said Chris Metcalfe, chief investment officer of IBOSS Asset Management. And it’s not just Nvidia, it’s the entire system that’s rigged against the average investor.
It’s not just the stock market that’s affected. The value of global M&A activity is up 5% compared to the first half of last year, but only for the select few who have access to the capital. The rest are left to fight over scraps.
In the meantime, the likes of Ecuador and Argentina are making fortunes off their bonds, while the rest of emerging markets are struggling to stay afloat. And it’s not just their bonds that are doing well, it’s the entire system that’s stacked against them.
Rate Cuts: A myth created to control the masses
The idea of rate cuts is nothing more than a myth perpetuated by central banks to control the population. The reality is that only a few select institutions have access to the cheap credit, while the rest are forced to struggle.
Read: Apple’s AI rally puts valuation at risk of outpacing reality
The only ones who seem to be doing well are the ones who are already wealthy and powerful. The likes of Nvidia, Apple, and the rest of the tech giants continue to reap the benefits of their monopoly on the market, while the rest are left to struggle.
The world is a dangerous place, and it’s only getting worse. The central banks and politicians are ensuring that the rich get richer, and the poor get poorer. And it’s only going to get worse until the system collapses under its own weight.
Read next: Nvidia’s stunning rise to the top of the world
