Bank for International Settlements on Big Banks

James Hall, Contributor
Activist Post

The shadow-banking component that adds to the risk of non-regulatory oversight just deepens the mystery behind the most powerful banking institution that runs roughshod over global finance. In order to gain an insight into the complexity of deception, examine the function of the BIS. The granddaddy of all central banks, the Bank for International Settlement, latest BIS Annual Report 2011/2012, foretells future financial consolidation.

Watch the Banker to the World’s Bank: Time to Deleverage, video interview on CNBC.

From Chapter V. Restoring fiscal sustainability, in this report concludes:

Sovereigns have been losing their risk-free status at an alarming rate. Fiscal positions were already unsustainable in many advanced economies before the financial crisis, which in turn led to significant further weakening. The deterioration of public finances has undermined financial stability, lowered the credibility of fiscal and monetary policy, impaired the functioning of financial markets, and increased private sector borrowing costs. Restoring sustainable fiscal positions will require implementing effective fiscal consolidation, promoting long-term growth, and breaking the adverse feedback loop between bank and sovereign risk.

The section called, Box VI.A: Shadow banking, states:

While definitions differ, the term ‘shadow banking’ broadly refers to financial activities carried out by non-bank financial institutions that create leverage and/or engage in maturity and liquidity transformation. Thus, even though they are subject to different regulatory frameworks, shadow and traditional banks operate alongside each other. 

Shadow banking exists because historical and institutional factors, the rapid pace of financial innovation and specialization have all increased the attractiveness of performing certain types of financial intermediation outside traditional banking. In normal times, shadow banking enhances the resilience of the broader financial system by offering unique financial products and a range of vehicles for managing credit, liquidity and maturity risks. But shadow banking also creates risks that can undermine financial stability in the absence of prudential safeguards.

The bombshell news that raises alarm is the admission that “Too Big To Fail” is still the operative principle that drives the banking system into an unsustainable servicing of debt obligations. The cloak of the shadow banking practice, intended to circumvent usual regulatory standards, creeps along the soft underbelly of respectable central banking. When a collapse catches up with the racket of excessive leverage, the ensuing scandal is directed to some esoteric phantom operation that is expendable.

The analysis in Big Banks Take Risks Expecting Taxpayers To Cover Losses identifies who ultimately bears the risk of the world fiat, debt created, financial system.

The report also emphasized the need to increase the safety of the banking system by pushing banks to be responsible for their losses, add to their financial buffers and avoid risky practices. It added that big banks still have an interest in using high-risk debt – so-called ‘leveraging’ – to magnify any trading gains because they can expect taxpayers to step in and cover their losses if things go bad. 

‘Big banks continue to have an interest in driving up their leverage without enough regard for the consequences of failure: because of their systemic weight, they expect the public sector to cover the downside,’ said BIS. ‘Another worrying sign is that trading, after a brief crisis-induced squeeze, has again become a major source of income for large banks.’

Protecting the fractional reserve scheme, at all cost, is the true purpose of the BIS. Sovereign holdings, with their ensuing national debt owed to the banksters pays homage to the real owners of underlying collateral assets.From a source in the essay, Revolution against Central Banks, explains a scheme of global magnitude for financial control.

The BIS is taking national currency deposits from the 55 member/owner central banks and converting them to SDR’s on its own balance sheet. The SDR’s are ‘claims on the freely usable currencies of IMF members,’ therefore, the deposits of the central banks become claims on those currencies–the deposits of the fiat central banks who can deposit as much as they feel at the BIS in whatever currency the chose–including the SDR’s allotted to their ‘nation,’ as the central banks are the sole depositories for the national wealth/sellers of the national debt. The BIS is then paying out dividends to these same member CB’s in the form of SDR’s, which again can be used to claim currencies. By August 2009, they had just made up out of thin air almost twelve times the supposed global supply of SDR’s. They are truly acting like the ‘central bank of the world,’ complete with printing!

By any objective standard of decency and accountability, the BIS is the ultimate clearinghouse of worldwide debt for the New World Order. Need proof, just reflect on the diversion used by a captain from one of the most powerful “Godfather” families of investment banking.

Finally in, Time to Stop Expecting So MuchFrom the Fed?, Goldman Sachs strategist Jim O’Neill told CNBC:

Even the central bank for central banks, the Bank for International Settlements, is playing down the power of the Fed and other central banks. 

‘It would be a mistake to think that central bankers can use their balance sheets to solve every economic and financial problem,’ the BIS said in its annual report. 

‘In fact, near-zero policy rates, combined with abundant and nearly unconditional liquidity support, weaken incentives for the private sector to repair balance sheets and for fiscal authorities to limit their borrowing requirements,’ the report said.

World consumers are being pick-pocketed in the graveyard of financial ruin. Strip away the skin of a decayed corpse and what remains is the stark skeleton of a dead paper monitory system. The life-support methods used to keep the interest payments accruing only forestall the day of reckoning. The end game for the central bankers is foreclosure on pledged guarantees. Currency swaps will become a recall of national fiat species and a replacement with a float of a new world coinage.

National governments are mere public diversions from the real power behind the thrones.

For additional information on the BIS, visit the Facebook Group, BIS (Bank for International Settlements) awareness.

Original article archived here

James Hall is a reformed, former political operative. This pundit’s formal instruction in History, Philosophy and Political Science served as training for activism, on the staff of several politicians and in many campaigns. A believer in authentic Public Service, independent business interests were pursued in the private sector. Speculation in markets, and international business investments, allowed for extensive travel and a world view for commerce.  Hall is the publisher of BREAKING ALL THE RULES. Contact [email protected]