Bank for International
"A warehouseman, taking goods deposited with him
and devoting them to his own profit, either by use or by loan to another, is
guilty of a tort, a conversion of goods for which he is liable in civil, if not
in criminal, law. By a casuistry which is now elevated into an economic
principle, but which has no defenders outside the realm of banking, a
warehouseman who deals in money is subject to a diviner law: the banker is free
to use for his private interest and profit the money left in trust. . . . He
may even go further. He
may create fictitious deposits on his books, which shall rank equally and
ratably with actual deposits in any division of assets in case of
liquidation." - Elgin Groseclose, Director of the Institute for
International Monetary Research 19341930The Bank for International Settlements (BIS) is
established by Charles G. Dawes (Vice President under
Calvin Coolidge from 1925-1929),
Owen D. Young
(founder of RCA and Chairman of
Electric from 1922 until 1939), and
Hjalmar Schacht of
Germany (President of the Reichsbank). The BIS is the "central bank for the
central bankers." The International Monetary Fund and
the World Bank deal with governments. The BIS deals only
with other central banks.
The BIS is a
closed corporation owned by the 55 central banks. Major shareholders include
the Federal Reserve,
Bank of England, Bank of Italy,
Bank of Canada, Swiss National Bank, Nederlandsche Bank, Bundesbank and
Bank of France.
The heads of these
central banks travel to the Basel headquarters once every two months, and the
General Meeting, the BIS's supreme executive body, takes place once a year. The
Basel headquarters are listening device proof. There are no public minutes of
the meetings. Everything discussed is confidential.
can sometimes be prima donnas." - BIS Secretary General Gunter Baer
"BIS promotes an agenda of monopoly capitalist fascism." - Dean
Central bankers wield power that exceeds that of many
political leaders. Their decisions affect entire economies. Central bankers set
interest rates, thereby determining the cost of borrowing and the speed of
global financial currents.
Central bankers are in charge of bank
supervision in most countries.
The BIS, a corporation, has the
status of a sovereign power and is immune from all governmental control. A
summary of this immunity is listed below:
1) Diplomatic immunity for
persons and what they carry with them (i.e., diplomatic pouches).
taxation on any transactions, including salaries paid to employees.
Embassy-type immunity for all buildings and/or offices operated by the BIS
4) No oversight of operations by any government authority,
they are not audited.
from immigration restrictions.
6) Freedom to encrypt any and all
communications of any sort.
7) Freedom from any legal jurisdiction, they
even have their own police force.
The first President of BIS was Rockefeller banker
Gates McGarrah - an official at Chase Manhattan and the Federal Reserve.
McGarrah is the grandfather of former CIA director
Quigley says BIS was part of a plan, "to create a world system of financial
control in private hands able to dominate the political system of each country
and the economy of the world as a whole to be controlled in a feudalistic
fashion by the central banks of the world acting in concert by secret
1933 "Practices of the unscrupulous money changers stand indicted in
the court of public opinion, rejected by
the hearts and minds of men. The money changers have fled from their
high seats in the temple of
our civilization." - Franklin
Delano Roosevelt inaugural address
1934 New Britain magazine of London publishes a
statement made by former British Prime Minister David Lloyd George that,
"Britain is the slave of an
international financial bloc."
1944 US lobbys unsuccessfully for BIS demise at the post-WWII
Bretton Woods Conference. The
IMF and the World Bank are created
at Bretton Woods Conference.
BIS holds at least 10% of monetary reserves for at least 80 of the
world's central banks, the IMF and other multilateral
institutions. It serves as financial agent for international agreements,
collects information on the global economy and serves as lender of last resort
to prevent global financial collapse.
IMF and World Bank are central to
this "New World
World Bank bonds
are floated by Morgan Stanley
and First Boston. The French Lazard family becomes more involved in Morgan
interests. Lazard Freres - France's biggest investment bank - is owned by the
Lazard and David-Weill families - old Genoese banking scions represented by
Michelle Davive. A recent Chairman and CEO of
Citigroup was Sanford
In planning the post-war economy it is jointly decided that the
Black Eagle Trust will be used to fight communism, bribe political leaders,
enhance the treasuries of US allies, and manipulate elections in foreign
countries and other covert operations. This trust iss headed by Secretary of
War Henry Stimson, assisted by John J. McCloy (later head of the World Bank)
and Robert Lovett (later Secretary of Defense) and consultant Robert B.
Anderson (later Secretary of the Treasury).
Anderson later operated the
Commercial Exchange Bank of Anguilla in the British West Indies and was
convicted of running illegal offshore banking operations and tax evasion.
Investors lost about $4.4 million.
1963 Eurodollar market is worth around $148 million.
Guaranty launched Euro-Clear, a Brussels-based bank clearing system for
Eurodollar securities. It was the first such automated endeavor. Some took to
calling Euro-Clear "The Beast". Brussels serves as headquarters for the new
European central bank and for NATO.
1973 Morgan officials met secretly
in Bermuda to plan the repeal
the Glass Steagal Act. Morgan and the Rockefeller provide financial backing
for Merrill Lynch boosting it
into the Big 5 of US investment banking.
Eurodollar market is worth $2 trillion, while the US M-1 money supply stood at
$442 billion.The utilization of Eurodollar offshore bank accounts by the
super-rich costs cash-strapped governments around the world trillions of
dollars in annual revenue.
1994 US Federal
Reserve buys shares in BIS.
2011 Rudolf M. Elmer,
former head of the Cayman Islands office of the prominent Swiss bank Julius
Baer, announced that he has handed over to Wikileaks information on 2,000
prominent individuals and companies that he says engaged in tax evasion and
other criminal activity. Elmer described those exposed as "pillars of society".
one point in time the BIS' board of directors, five elected - the rest
# Nout H E M Wellink, Amsterdam (Chairman of the Board
# Hans Tietmeyer, Frankfurt am Main (Vice-Chairman)
Axel Weber, Frankfurt am Main
# Vincenzo Desario, Rome
# Antonio Fazio,
# David Dodge, Ottawa
# Toshihiko Fukui, Tokyo
Timothy Franz Geithner, New York
# Alan Greenspan,
# Lord George, London
# Hervé Hannoun, Paris
Christian Noyer, Paris
# Lars Heikensten, Stockholm
# Mervyn King,
# Guy Quaden, Brussels
# Jean-Pierre Roth, Zürich
Alfons Vicomte Verplaetse, Brussels
" In 1950 US corporations footed 26% of the total
US tax bill. By 1990 they were covering only 9%, contributing to massive budget
deficits and the current $14 trillion US debt. In 2009 corporate leviathans
such as Bank of America,
Electric and ExxonMobil
paid no US federal taxes. Exxon's net profit for that year was over $45
It utilized subsidiaries in the British Crown-controlled
Bahamas, Bermuda and Cayman Islands to dodge the IRS. These opaque offshore
Eurodollar markets also launder Saudi petrodollars, CIA drug money and Mossad
arms profits. Illicit funds come out squeaky clean on the balance sheets of the
global mega-banks. Secretive Swiss banks play a key role. The most powerful is
the Bank for International Settlements " - Dean Henderson
"The powers of financial
capitalism had a far reaching plan, nothing less than to create a world
system of financial control in private hands able to dominate the political
system of each country and the economy of the world as a whole. This system was
to be controlled in a feudalist fashion by the central bank of the world acting
in concert, by secret agreements arrived at in frequent meetings and
conferences. The apex of the system was to be the Bank For International
Settlements in Basel, Switzerland
(home of first World
Zionist Congress, chaired by
Theodor Herzl in 1897), a
private bank owned and controlled by the world's central banks which were themselves
private corporations. Each central bank sought to dominate its government
by its ability to control treasury loans, to manipulate foreign exchanges, to
influence the level of economic activity in the country, and to influence
cooperative politicians by subsequent economic rewards in the business world."-
Carroll Quigley Tragedy And Hope
"We have in this country one of
the most corrupt institutions the world has ever known. I refer to the
Federal Reserve Board. This evil institution has
impoverished the people of the United States and has practically
bankrupt our government. It
has done this through the corrupt practices of the
moneyed vultures who control it." - Louis T. McFadden, 1932, Chairman of
the House Banking & Currency Commission
"The world today, however
provides a spectacle of a great concentration
of Zionist power. In New York there is a concentration of
Zionist financial power dominating the entire world in
its material affairs, and side by side with it is the greates physical
concentration of the Jews ever recorded. On the other side of the globe, there
has taken place in Russia the greatest concentration of the Jewish
revolutionary activity in all history. The enormously significant thing in the
world today is that both this power of the purse and revolutionary activity are
working in the direction of destroying the entire existing order of things, and
not only are they working in a common direction, but there is a mass of
evidence that they are working in unison." - Arthur Nelson Field, The Truth
About the Slump
monetary squeeze of
Federal Reserve reports assets of about $836 billion, 92% of them are the
federal securities. By the spring of 2008 the values of federal securities had
dropped to $500 billion and total asset value had remained level until
September of 2008.
Until September 2008 Between
September and December the Federal Reserve allowed the Monetary Base to
increase from $836 billion to $1,479 billion.
December 2008 95% of the
Federal Reserve "assets" are toxic
collateralized debt obligations. On December 16 the Federal Reserve cut its
interbank lending rate to a range of 0% to .25%.
"The banks have
exchanged $2 trillion of presumed toxic waste securities consisting of
Asset-Backed Securities in sub-prime mortgages, stocks and other high-risk
credits in exchange for Federal Reserve cash and US Treasury bonds. The result
is that the Federal Reserve is holding some $2 trillion
in largely junk paper from the financial system. Borrowers include
These banking conglomerates oppose any release of information because that
might signal 'weakness' and spur short-selling or a run by
depositors. The Federal Reserve does
not want to discuss this. That is clearly also behind their blunt refusal to
reveal the nature of their $2 trillion assets acquired from member banks and
other financial institutions. Simply put, were the Fed to reveal to the public
precisely what 'collateral' they held from the banks, the public would know the
potential losses that the government may take." - F. William Engdahl
The interest tab to finance federal government expenditures was
$412 billion in fiscal year 2008, or about one-third of the federal
government's total income from personal income taxes which was $1,220
January 2009 Federal Reserve reportes assets of
$2.1 trillion, an increase of $1.2 trillion from September 2008. That increase
represents loans worth $1.2 trillion - a startling increase which more than
doubled the size of the Monetary Base from September 2008 to January 2009.
Ben Gisin, a former banker tracking the Fed's statistical releases,
says he has never seen anything like it.
Fungible assets magically appeared
on the Fed's balance sheet.
"The Federal Reserve's Open Market Committee
authorized $300 billion in purchases of long term treasury bonds for six
months. The central bank's latest efforts may help swell its balance sheet to
more than $4 trillion this year." - Scott Lanman, March 25, 2009
Federal Reserve, like other regulators around the world, did not do all that it
could have to constrain excessive risk-taking in the financial sector in the
period leading up to the crisis." - Ben Bernanke Sunday, November 29,
Fed is paying out roughly $400 million a year for "research" - much
of it to outside economists who then advocate for the Fed's agenda
without disclosing their Fed ties. Seven of the eight economists on a 2009
anti-oversight letter to Congress failed to note they are or were on the Fed's
payroll. The Fed "so thoroughly dominates the field of economics that real
criticism of the central bank has become a career liability for members of the
"Under a misguided set of international
rules that took hold toward the end of the 1990s, banks were allowed use
their own internal risk measurements to set their capital requirements." - Joe
"To understand the real cause of the credit crisis
and how it can be reversed, we first need to understand credit itself what it
is, where it comes from, and what the real tourniquet is that has limited its
flow. Banks actually create credit; and if private banks can do it, so could
public banks or public treasuries. The crisis is not one of "liquidity" but of
"solvency." It has been caused, not by the banks' inability to get credit
(something they can create with fungible accounting entries), but by
their inability to meet the capital requirement imposed by the Bank for
International Settlements, the private foreign head of the international
banking system. What actually constrains bank lending is the capital adequacy
requirement, something that is imposed not by our own central bank but by the
Bank for International Settlements. Called "the central bankers" central bank,
the BIS pulls the strings of the private international banking system from
Basel, Switzerland." - Ellen Brown
"The Fed does not need slinky women in plunging
necklines to peddle money. All it needs is low interest rates. When rates are
pushed lower than the rate of inflation, the Fed provides a subsidy for
borrowing. If I offered to give you $1.00 for every 90 cents you gave me in
return, you would buy as many dollars from me as you could. The Fed operates
the same way. It generates market activity by creating incentives for
borrowing. Borrowing leads to speculation, and speculation leads to steadily
rising asset prices. The Fed is not an unbiased observer of
free market activity. The Fed
drives the market. The Fed fuels
speculation and controls behavior by fixing interest rates. The Fed IS
the market, which is why it is
foolish to talk about a "recovery". The idea of recovery implies a
free-standing system based on supply and demand. The bottom line, is that the
current financial architecture is not designed to work; it is designed to make
a handful of speculators very rich. These speculators own congress, the White
House and the financial media, which is why there has been no meaningful change
in regulations." - Mike Whitney "The Federal Reserve
will ask a U.S. appeals court to block a ruling that for the first time would
force the central bank to reveal secret identities of financial firms that
might have collapsed without the largest government bailout in U.S. history." -
David Glovin 01/11/10
FOIA requires federal agencies to make government
documents available to the press and public. U.S. District Judge Loretta Preska
noted in her August 24, 2009 ruling that loan records are covered by FOIA and
rejected the Fed's claim that their disclosure might harm banks and
"The Fed speculates on how a borrower might enter a
downward spiral of financial instability if its participation in the Federal
Reserve lending programs were to be disclosed. Conjecture, without evidence of
imminent harm, simply fails to meet the board's burden of proof." - U.S.
District Judge Loretta Preska
In its appeal, the Board of Governors of
the Federal Reserve System argued that disclosure of "highly sensitive"
documents, including 231 pages of daily lending reports, threatens to
stigmatize lenders and cause them "severe and irreparable competitive
What are they trying to
hide?"The outbreak of the current crisis and
its spillover in the world have confronted us with a long-existing but still
unanswered question, i.e., what kind of international reserve currency do we
need to secure global financial stability and facilitate world economic growth,
which was one of the purposes for establishing the International Monetary Fund?
There were various
institutional arrangements in an attempt to find a solution, including the
Silver Standard, the Gold Standard, the Gold Exchange Standard and the Bretton
Woods system. The above question, however, as the ongoing financial crisis
demonstrates, is far from being solved, and has become even more severe due to
the inherent weaknesses of the current international monetary system.
Theoretically, an international reserve currency should first be
anchored to a stable benchmark and issued according to a clear set of rules,
therefore to ensure orderly supply; second, its supply should be flexible
enough to allow timely adjustment according to the changing demand; third, such
adjustments should be disconnected from economic conditions and sovereign
interests of any single country.
The acceptance of credit-based
national currencies as major international reserve currencies, as is the case
in the current system, is a rare special case in history.
again calls for creative reform of the existing international monetary system
towards an international reserve currency with a stable value, rule-based
issuance and manageable supply, so as to achieve the objective of safeguarding
global economic and financial stability.
Issuing countries of reserve
currencies are constantly confronted with the
dilemma between achieving their
domestic monetary policy goals and meeting other countries' demand for reserve
currencies. On the one hand, the monetary authorities cannot simply focus on
domestic goals without carrying out their international responsibilities, on
the other hand, they cannot pursue different domestic and international
objectives at the same time. They may either fail to adequately meet the demand
of a growing global economy for liquidity as they try to ease inflation
pressures at home, or create excess liquidity in the global markets by overly
stimulating domestic demand.
The Triffin Dilemma, i.e., the issuing
countries of reserve currencies cannot maintain the value of the reserve
currencies while providing liquidity to the world, still exists.
frequency and increasing intensity of financial crises following the collapse
of the Bretton Woods system suggests the costs of such a system to the world
may have exceeded its benefits.
The desirable goal of reforming the
international monetary system, therefore, is to create an international reserve
currency that is disconnected from individual nations and is able to remain
stable in the long run, thus removing the inherent deficiencies caused by using
credit-based national currencies.
Monetary Fund creates the Special
Drawing Rights (SDR) when the defects of the Bretton Woods system initially
emerged to mitigate the inherent risks sovereign reserve currencies caused.
A super-sovereign reserve currency managed by a global institution
could be used to both create and control the global liquidity. When a country's
currency is no longer used as the yardstick for
global trade and as the benchmark
for other currencies, the exchange rate policy of the country would be far more
effective in adjusting economic imbalances. This will significantly reduce the
risks of a future crisis and enhance crisis management capability.
Special consideration should be given to giving the SDR a greater role.
The SDR has the features and potential to act as a super-sovereign
reserve currency. Moreover, an increase in SDR allocation would help the Fund
address its resources problem and the difficulties in the voice and
representation reform. Therefore, efforts should be made to push forward a SDR
allocation. The scope of using the SDR should be broadened, so as to enable it
to fully satisfy the member countries' demand for a reserve currency.
The SDR, which is now only used between governments and international
institutions, could become a widely accepted means of payment in international
trade and financial transactions.
The allocation of the SDR can be
shifted from a purely calculation-based system to a system backed by real
assets, such as a reserve pool, to further boost market confidence in its
Entrusting part of the member countries' reserve to the
centralized management of the IMF will not only enhance the international
community's ability to address the crisis and maintain the stability of the
international monetary and financial system, but also significantly strengthen
the role of the SDR. With its universal membership, its unique mandate of
maintaining monetary and financial stability, and as an international
"supervisor" on the macroeconomic policies of its member countries, the IMF,
equipped with its expertise, is endowed with a natural advantage to act as the
manager of its member countries' reserves." - Zhou Xiaochuan, governor of the
People's Bank of China 03/23/09
"I know of no severe depression, in any country or
any time that was not accompanied by a sharp decline in the stock of money, and
equally of no sharp decline in the stock of money that was not accompanied by a
severe depression." - Milton
"The International Monetary
Fund's Articles of Agreement prevent countries from restoring the "dual
exchange rate" systems that many retained down through the 1950s and even into
the 60s. It was widespread practice for countries to have one exchange rate for
goods and services (sometimes various exchange rates for different import and
export categories) and another for "capital movements."
pressure, the IMF enforced the pretence that there is an "equilibrium" rate that just
happens to be the same for goods and services as it is for capital movements.
Governments that did not buy into this ideology were excluded from membership
in the IMF and World Bank or were overthrown.
today is that the only way a nation can block capital movements is to withdraw
from the IMF, the World Bank and
the World Trade Organization (WTO). For the first time since the 1950s this
looks like a real possibility, thanks to
worldwide awareness of how the US economy is glutting the global economy with
surplus "paper" dollars and US intransigence at stopping its free ride.
From the U.S. vantage point, this is nothing less than an attempt to curtail
its international military
program." - Michael Hudson
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author feels that the falsification of reality outside personal experience has
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This web site in no way condones violence. To the contrary the
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complex and is responsible for the collapse of morals, the elevation of
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American social mores and values have declined precipitously over
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operations. The results have been the destruction of the family and the
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