SECRETLY, YET OUT IN THE OPEN, A VERY ELITE GROUP OF CENTRAL BANKERS MEET ONCE EVERY TWO MONTHS IN BASEL, SWITZERLAND FOR LUNCH.
DECIDE THE FATES OF ALL OUR NATIONS' ECONOMIES, AND THEY HAVE COME UP WITH A GRAND NEW EXPERIMENT TO SEE IF THEY CAN SERVE THEIR MASTERS BETTER WHILE WRECKING NATIONAL ECONOMIES.
EXPERT ECONOMISTS HAVE WARNED THEM FOR YEARS THAT WHAT THEY ARE DOING WILL LEAD TO RUIN, BUT THEY'RE DOING IT ANYWAY.
MAYBE UNQUESTIONED POWER IS WHAT MAKES BERNANKE SMILE?
HMMM, IS THIS HIS 'SIGN' FOR 'MIND-SCREWING' THE CONGRESS AND THE AMERICAN POPULACE?
<<December 12, 2012
BASEL, Switzerland—Every two months, more than a dozen bankers meet here on Sunday evenings to talk and dine on the 18th floor of a cylindrical building looking out on the Rhine.
The dinner discussions on money and economics are more than academic. At the table are the chiefs of the world's biggest central banks, representing countries that annually produce more than $51 trillion of gross domestic product, three-quarters of the world's economic output.
Over Sunday dinners in Basel, which often stretch to three hours, they now talk of pressing, real-world problems with authority. The meals are part of two-day meetings held six times a year at the Bank for International Settlements (BIS).
Dinner guests include leaders of the Fed, ECB, Bank of England and Bank of Japan, as well as central bankers from India, China, Mexico, Brazil and a few other countries.
Bank of England's Mervyn King, [who usually opens the meetings], said, "It is a way in which people can talk completely privately. It is a big advantage if you have some feel for how central banks think about questions, what they're likely to do in the future if certain events were to occur."
Serious matters follow appetizers, wine and small talk, according to people familiar with the dinners. Mr. King typically asks his colleagues to talk about the outlook in their respective countries. Others ask follow-up questions.
The gatherings yield no transcripts or minutes. No staff is allowed.
The 18-member group, formally known as the Economic Consultative Committee, has only once issued a public statement: a two-line missive in September, 2012, promising to look for solutions in interbank lending markets, responding to allegations that some private banks had conspired to manipulate the Libor interest rate.
On Mondays after the dinner, these bankers join a larger group of central bankers at a large round table on a lower floor of the BIS building, which is shaped like a rook chess piece.
Their monetary strategy isn't found in standard textbooks.
The central bankers are, in effect, conducting a high-stakes experiment, drawing in part on academic work by some of the men who studied and taught at the Massachusetts Institute of Technology in the 1970s and 1980s.
Of late, these secret talks have focused on global economic troubles and the aggressive measures by central banks to manage their national economies.
Since 2007, central banks have flooded the world financial system with more than $11 trillion [in paper currency]..
A day after their June dinner, the central bankers were warned by one of their hosts in a speech to the group.
"Central banks find themselves caught in the middle, forced to be the policy makers of last resort. They are providing monetary stimulus on a massive scale," said Jaime Caruana, general manager of the Bank for International Settlements (BIS), where the dinners are held. "These emergency measures could have undesirable effects if continued for too long."
"Central banks cannot solve structural problems in the economy," said Stephen Cecchetti, who runs the BIS monetary department. "We've been saying this for years, and it's getting tiresome."
As central bankers grapple with doubts and disagreements over reviving the global economy, they form a tight-knit fraternity, tied by efforts to manage growth and gird against financial instability. Their relationships play out during conversations by phone and in person.
"A big secret of central bank cooperation," Mr. King said, "is that you can just pick up a phone and have an agreement on something very quickly" in a crisis.
This summer , the central banking clique kept in close touch as they readied for a new round of monetary activism. On June 8, Ben Bernanke and Mr. King spoke by phone for a half-hour before policy meetings at their central banks, according to Mr. Bernanke's phone records, obtained in a public records request. A few days later, Mr. Bernanke spoke by phone with Mark Carney, head of the Bank of Canada—and last month named as Mr. King's successor. Shortly after, Mr. Bernanke called Stanley Fischer, head of the Bank of Israel, and a former MIT professor who was Bernanke's dissertation adviser.
On June 18, Mr. Bernanke had an early morning call from his home on Capitol Hill with European Central Bank's Mario Draghi and Mr. King, according to his phone records, as the men assessed the impact of the Greek election on Europe's financial system.
Economists at the BIS, meanwhile, have grown more skeptical about the central bank tilt. They say their warnings of a credit bubble were ignored before the financial crisis. "Nobody took it seriously," said William White, formerly the top BIS economist.
Now, he said, the central banks may again be steering toward long-term troubles in their elusive quest for short-term growth.>>
[NOTE: WHICH NATIONAL SECURITY AGENCY EMPLOYEES LISTENED IN ON THOSE CONVERSATIONS, DO YOU WONDER? WHAT DO THEY DO WITH WHAT THEY HEAR/RECORD FROM THESE CENTRAL BANKERS?]
In 2008,'SOMEONE' in America gave the okay to hand $700 billion in taxpayer money to the Central Bank of China, as well as other central banks across the globe to pay off their mortgage-backed securitized frauds.
700 billion to one bank, but about 12 to 16 trillion dollars globally!
WHEN SENATORS QUESTIONED WHO GOT THE TRILLIONS, NO ONE COULD SAY!
AS THE TRUTH BECAME KNOWN, THAT THE $9 TRILLION IN FOREIGN LOANS WAS ACTUALLY MORE LIKE $16 TRILLION, OTHERS JOINED RON PAUL IN CALLING FOR A FULL AUDIT OF THE FED, DEMOCRATS AND REPUBLICANS.
WHEN A FEW SENATORS WANTED TO MAKE THE FED 'TRANSPARENT' AND AUDIT THE FED, BERNANKE'S RENOWN SMILE FADED, AND HE SAID THAT WOULD BE A BIG MISTAKE, AND THREATENED CONGRESS!
Bernanke told Capitol Hill that their political meddling would produce a “nightmare scenario”.
"My concern about the legislation is that if the GAO is auditing not
only the operational aspects of the programs and the details of the
programs but making judgments about our policy decisions would
effectively be a takeover of policy by the Congress and a repudiation of
the Federal Reserve would be highly destructive to the stability of the
financial system, the Dollar and our national economic situation."
brunt of Bernanke's statement is as crystal clear as a threat from a
common street thug: 'Back off from the Fed, or the economy gets it.!'
THIS JANUARY, ENGLAND WAS 'ON THE BRINK' OF A FULL 'RECESSION', AGAIN. NO MATTER WHAT THE CENTRAL BANK DID, IT JUST DID NOT WORK:
January 25, 2013<<The U.K. economy is on the brink of a triple-dip recession. It shrank by 0.3% in the final quarter of 2012 and is struggling
The government said last month that the belt tightening would have to continue into 2018, a year longer than expected, due to low revenues. National output remains about 3% below pre-recession levels.>> http://money.cnn.com/2013/01/25/news/economy/uk-gdp-recession/index.html?iid=EL
TIGHTEN THOSE BELTS, BRITS! IT'S GOING TO BE A BUMPY RIDE...FOR THE AVERAGE CITIZEN, THAT IS.
IN 2012, ANOTHER WARNING THAT THE FED WAS FAILING TO BRING AMERICA OUT OF THE SLUMP, 4 YEARS AFTER THE MELTDOWN:
Hans Larenzen, Citigroup strategist: “Captive bank demand can buy time and can help keep domestic yields
low. However, the distortions that build up over time can sow the seeds
of an even bigger crisis, if the time bought isn’t used very prudently.
Specifically, having banks loaded up with domestic sovereign debt will
only increase the domestic fallout if the sovereign ultimately reneges
on its obligations.”
BUT ISN'T THAT THE PLAN?
As of August 9, 2012, banks have been given the legal standing to co-mingle customer-secured funds with their own to pay off debts when under duress, OR have declared bankruptcy OR are insolvent. The Federal Deposit Insurance Corporation (FDIC) are no longer insuring customers against fraudulent stealing of their monies out of private checking accounts, savings accounts, IRAs, CDs, and all other accounts held by customers.
When a customer deposits money into a bank, the bank essentially issues a promise to have those funds available when the customer returns to withdraw the deposited amount. When the same customer withdraws funds from their account (whether checking or savings) the customer assumes that the bank has enough funds to cover their withdrawal; including the presumption that their monies are separate from the bank’s assets.
Since 2010, the Federal Reserve has been collecting all the mega-bank’s contingency plans for financial collapse in the US; along with investments from those banks, into private mercenary security firms...firms such as DynCorp and Blackwater.
Once the US dollar is brought to its knees, after being unseated as the global reserve currency, the International Monetary Fund (IMF), World Bank and UN will step in to introduce the one world currency. According to a report issued by the UN Conference on Trade and Development (UNCTAD), the reset button on the global fiat debacle is the issuance of a global currency issued by the IMF and controlled by the UN. As the Fed grossly distorts the global economy, as well as the US dollar, with QE3 and now QE 4, the government bonds purchased become worth less and less. This feeds directly into their plan to inflate fiat currencies into oblivion.
The main point here is that the Fed is now actively running both monetary and fiscal policy because it will now be in the business of funding nearly 100% of all the new government deficit spending in 2013. And it's pumping AT LEAST $1 trillion of hot, thin-air money into the economy as it does so.
The odd thing here is that by tying their policy to the unemployment rate for QE4, we could be in for a very long wait for the 'stimulus' to end.
FINANCIAL WIZARDS ACROSS THE GLOBE ARE SHAKING THEIR HEADS IN TOTAL DISBELIEF OVER THE LATEST "PLAN" BY THE FED.
FORBES WROTE ON 12/12/12:
<<QE4 is now going to act as both monetary and fiscal stimulus– another $85 billion worth of Fed accumulations of Treasury bonds and mortgages- that is meant to keep stock prices moving higher and residential home sales climbing briskly. The goal is to drive economic activity, especially residential home building, so that unemployment drops from 7.7% to 6.5%.
As for QE4, the Fed has broken with every historic practice of vague, murky pronouncements (think the dramatics of Greenspan) to tell the markets it will continue to pour money into the economy– really into the banking system, the balance sheets of financial institutions, and into the bond markets. QE4 will get into the economy by making possible low coupon mortgages for the buyers of residential homes. More sales of residential homes will require hiring more builders, electricians, plumbers etc, and they will spend their earnings. Whether this process will make up for the coming reductions in entitlement payments is impossible to deduce right now.>>
AS IF ONE HOUSING BUBBLE BURSTING WASN'T ENOUGH?
Economists at the BIS, SINCE QE4, are even more skeptical about the central bank tilt. They say their warnings of a credit bubble were ignored before the 2008 financial crisis. "Nobody took it seriously," said William White, formerly the top BIS economist.
Now, he said, the central banks may AGAIN be steering toward long-term troubles in their elusive quest for short-term growth.
THE FED WOULDN'T DO THAT AGAIN, WOULD THEY?
IS SNOW WHITE?
WELL, FOLKS, WHAT CHANCE DO WE HAVE AGAINST AN INTERNATIONAL BANKING CARTEL STEERED BY A FEW HUMONGOUS CORPORATIONS?
HOW MUCH CHANCE ARE YOU WILLING TO TAKE?
HOW BIG A CHANCE DOES THIS WARRANT?
YOU CAN SURELY SEE THE POINTS ALL CONNECT ON THAT CHART, RIGHT?
THOSE ARE YOUR 'MASTERS'...SERVE THEM OR...DON'T.