In recent years we hear a lot about the "gap" between the so called 1% and most everyone else. There is no doubt that a lot of the world's wealth is concentrated in relatively few hands. It's also true that this is a political hot button issue. Since we try to avoid politics here, I would suggest that there is another equally important gap. It seems to exist no matter which political party may be in power. It is what I will call the "information gap." What do I mean by this? Let's explore it.------------------------------------------------------------------------------------------------------------
After following these important monetary issues for several years now, I have come to believe that one of the biggest problems we have in the world today is what I will call the "information gap." This may seem strange to say when we live in a world with more information than ever. We have information coming at us from every direction. So how can there be an "information gap?"
What I am I referring to is the gap in information held by those who are inside the system and all the rest of us. Information that is not transparent to the public. Everyone knows that those on the inside have access to the most critical information about why things are done and what plans there are for the future of the monetary system. They know which direction the powers that be want to go. All of us on the outside don't. It's pretty much that simple.
That means we have two classes of people. Those who are inside who know what is happening within the power structure right now and where it plans to go in the future (the information rich); and those who don't (the information poor). I would guess that the first class is composed of far less than the 1% so often talked about. The 1% may have a lot of wealth, but only a very few within the 1% are privy to the key inside information that drives the world monetary system.
Here is a recent example in the news that I will use to illustrate my point. The US is attempting to get Congress to approve the recently completed agreement with Iran regarding nuclear weapons. Before we even get to the point I want to make, the secrecy around this agreement is a perfect example. There are a few people who get to know all the details about what the deal really says while most of us are just left to guess. In situations like this, national security is usually cited as the reason why information must be kept confidential.
Now we all have a stake in how this turns out for sure. If things go wrong in the future, the consequences could be horrific. I don't know if the deal will make that less likely or more likely. Do you? I don't see how you or I could even have a fully informed opinion since we are not going to be allowed to know all the relevant information needed to form an opinion.
Now, to my main point from this example:
Here is the news article where Secretary of State John Kerry declares:
"If we turn around and nix the deal and then tell them (Iran), 'You're going to have to obey our rules and sanctions anyway,' that is a recipe, very quickly ... for the American dollar to cease to be the reserve currency of the world," U.S. Secretary of State John Kerry said at a Reuters Newsmaker event.
Say what? There is some kind of connection between the approval of this deal and the status of the US dollar as the reserve currency of the world? How are those of us not in know supposed to react to a statement like that? How do these two things go together?
Will there be any further explanation as to how this could happen? Not likely. Will we get any explanation as to what Secretary Kerry might know that we don't to prompt this statement? Not likely.
As usual, those of us outside the information loop can only blindly speculate as to why this comment was made. Was it just an exaggeration to try and get support for what he wants? Was he just lying? Was there some factual basis to this statement? Something those on the inside know about and we don't? Are we supposed to just take Secretary Kerry at his word? Is it possible that it might be good for us to have some idea what the real facts are since we do have a considerable stake in the eventual results?
I think this example illustrates what goes on all the time in the financial/monetary system realm. A few people inside the global monetary system have the key information about why things are done and what is being planned for the future. All the rest of us get to just wonder and speculate because that is all we can do. We will all likely be impacted by the decisions made, but we are not likely to be clued in ahead of time. I don't know if that is right or wrong, it is just how things are. Proponents would probably say it is for security reasons. Critics will suggest all kinds of other motives.
I believe this situation is what leads to so much confusion and anxiety about what will happen in the future in regards to our monetary system. Since only a few get to know the behind closed doors facts, the door is left wide open for speculation and all kinds of predictions in a world overloaded with conflicting information and opinions. Those inside the system really have no right to complain when all this speculation takes place. They give people with no other choice when they are left to try and sort through a barrage of information coming at them from every direction.
The problem we have is not lack of information, it's lack of accurate information (which is kept from the public). I think it has created the biggest gap in society. The gap between the far less than 1% who have accurate information (the information rich) and all the rest of us who don't (the information poor). That is what I mean by "the information gap."
I don't really expect this to change. This is why when we do get little glimpses now and then inside the system, we need to realize it is valuable information. People who work inside the system (or have in the past) are more likely to have accurate information. That's why we try to feature people like that here on the blog whenever we can along with credible experts who provide documentation the reader can verify on their own. It's not a guarantee that everything they say will be accurate, but it is more likely to be accurate. It doesn't mean they will hit every forecast, but they are more likely to hit more forecasts.
It's the best we can do since we live on the outside and it appears unlikely the .001% will ever invite us inside to be part of the decision making process.
addendum: here are some example blog articles that feature glimpses inside the system
Former Dallas Fed Advisor Speaks Out (Danielle DiMartino Booth)
Nomi Prins Presentation at the Fed
Nomi Prins Talks with Greg Hunter about Fed reaction to her presentation
Andrew Huszar discusses QE program at the Fed
Jim Rickards conversation with Ben Bernanke
Jim Rickards - Back to the Pentagon
This blog has good relations with people like Jim Rickards and Nomi Prins. Recently we have had a chance to make contact with some other very good sources like Willem Middelkoop (OMFIF Advisory Board) and others associated with a new program called SDRF University. There are others who help us to understand some of the complex issues we cover here that have a deep understanding of it, but don't seek publicity. We owe thanks to all these people who take valuable time and share what they can to help us learn.
I believe these are the best information sources we are going to get from our position outside the system. Perhaps it can help close the information gap at least a little bit for readers here.
What I have learned is that often times better information leads to less anxiety and a better ability to sort through all the conflicting information and opinions. I think most would agree that better information helps people make better personal decisions. I would argue that society as a whole is better served as well.