WHERE DOES REAL ECONOMIC POWER LIE?
The development of the global market, particularly in the spheres of free trade, the instantaneous movement of capital and the trading of currencies, means that to a very great extent national governments have lost the power to control their economies. These developments have come about because most governments have accepted the theory that they should not interfere in the running of the economy but should leave it to businesss men and financiers. The handing over of control of interest rates to central banks is confirmation that politicians have surrendered the economic field to financiers. Further confirmation is in the almost wholesale deregulation of financial markets. Governments have the same attitude to the global markets. Around $2 trillion are traded daily on global currency markets purely for speculative reasons to make profits, not to finance legitimate trade and governments do nothing about it despite the damage caused to the value of their currencies and to their economies
