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