News & Analysis
BIS Calls for Hyperinflationary Depression?
The Bank for International Settlements Sunday issued an oblique endorsement of coordinated action by the world's largest central banks to ease funding conditions for banks. "A freezing of interbank markets in major funding currencies, as during the recent crisis, may require the ability to supply official liquidity in major currencies in an elastic manner," the BIS wrote in its regular quarterly report." – MarketWatch
Dominant Social Theme: Inflate! And everything will work out.
Free-Market Analysis: We've already indicated that we believe the Anglosphere power elite is attempting to create a kind of Great Depression in order to ease the path of world government. This squib of an article in MarketWatch (excerpted above) – unnoticed by most of the mainstream press – only reconfirms our impression.
It endorses recent "coordinated" central banking loosening. But it does more: "A freezing of interbank markets in major funding currencies, as during the recent crisis, may require the ability to supply official liquidity in major currencies in an elastic manner."
Think about that. The BIS, whatever it is, is all for printing lots of money. And the BIS is no small-time trade group. It is perhaps the most powerful (and least known) global business body in the world. Its mysteries are manifold. its workings are well-hidden.
Of course, somebody actually set up the Bank for International Settlements in the late 1930s. And since then someone has set up or helped set up about 200 central banks around the world, many of them reporting directly to the BIS.
But who? And how did it happen? Dunno.
Who speaks to the head of a state, asking him or her to set up a central bank? Dunno. Do you?
Why is that Libya, Afghanistan and Iraq have central banks when they didn't before, or not the kind they do now? Did you read about it?
Meh ... this ruinous financial system is not a plant or a tree. It did not grow spontaneously. It did not grow naturally. And we would submit to you that those who created it know what they're doing.
The key as always is to pretend that one does NOT know. The key is to create cognitive dissonance. Even today, if you asked the average person-on-the-street if the powers-that-be are trying to create a Depression (let alone a hyperinflationary one), you would get the ol' crazy look, as in ... "What is this fellow ... nuts?"
But, no, nothing nutty about it. The European Union and the euro are grinding a whole European generation into dust. China's burgeoning middle class is about to get walloped if China ends up in a proverbial hard landing, as well it might. The US has NEVER recovered from the disaster of the mid-2000s (first decade) nor shall it for the foreseeable future.
Into this morass steps the BIS, with its suggestion (above) that further monetary inflation is the only viable solution to the problem that central banking itself has created.
Smile ... and nod! Don't acknowledge the reality that the ruin is a central banking ruin. The monetary decay is the result of a monopoly fiat. The great dollar expansion yet to come is also a direct outcome of the current system that was put in place after World War II.
No, it's not hard to discern what's going on if one simply disassociates oneself from the endless nattering of the mainstream media. Analyze what IS instead of what is SUGGESTED and the reality shall gradually become clear.
DB's manifestly accurate High Alert (published some four years ago now) was written because we were tracking what was actually happening to the world's economy instead of what was being reported ....
A financial hurricane is washing over America and, to a lesser extent, the entire West. To label it the "downstroke" of a super business cycle does not do it justice. These events occur in cycles, with the last one taking place in the 1970s — a mild storm compared to what is occurring today. ...
A strong inflation, even a soft hyperinflation, already has a grip on Western currencies, most notably in the United States — as anyone who buys groceries is aware. The dollar's plunge may be delayed by a kind of "race to the bottom" as other central banks adjust their currencies to reflect the weakness of the dollar. ...
In his "Great American Depression," free-market economist Murray Rothbard explains the ramifications of hyperinflation as follows: "Hyperinflation, on any count, is far worse than any depression: It destroys the currency — the lifeblood of the economy; it ruins and shatters the middle class and all fixed income groups; it wreaks havoc unbounded. And furthermore it leads finally to unemployment and lower living standards since there is little point in working when earned income depreciates by the hour."
(You can read the full book online here.)
THIS is what the BIS seems to have in mind. This is the fate that has been decreed, apparently, by those who want to crush middle classes around the world in order to create a "new world order." Out of chaos ... order. It is quite clear. Follow what IS rather than what you are being TOLD.
The BIS wants to inflate. it ENDORSES inflation. The proximate cause is the unraveling of the current financial system. But it is "their" system. They made it. They watched it rise and fall. It was obvious that it could not end in anything other than a massive contraction and perhaps hyperinflation.
The contraction – incipient Depression – has already taken place. Best case, the powers-that-be would stop trying to prop up failing markets and let the downturn have its way as quickly as possible. This they will not do. Instead, the next phase of an increasingly horrific scenario is about to unfold.
Rather than let the market alone, the elites are apparently readying massive central bank monetary inflation around the world. That's the real message of this innocent little squib of an article, so far as we can tell.
The BIS, in its inoffensive way, is signaling that the current level of disaster and despair is not good enough. The agony is not sufficient. The new world order is to be birthed on the graves of millions, and nothing but hyperinflation (and/or war) will produce the sufficient level of chaos. Here's some more from the article:
The U.S. Federal Reserve 10 days ago agreed to expand, and reduce the cost of, multilateral swap lines with five other large central banks, notably the European Central Bank, in an effort to restore access to dollar funding for European banks. Euro-zone banks used the new facility to borrow $50.7 billion at a rate of 0.59% at the first operation after the announcement.
The BIS's essay was its latest in a series analyzing the concept of global liquidity, and focused again on the interplay between official liquidity, that is, created by central banks, and the far greater liquidity created by the private sector on the basis of central bank money--the so-called money multiplier.
The essay observed that much is still unknown on this topic, particularly on the degree to which the accumulation of foreign exchange reserves by central banks, and their subsequent reinvestment, can affect the creation of private liquidity.
The BIS noted that the priority of policymakers should be to mitigate surges in the overall level of global liquidity. It said the new "Basel III" rules on capital and liquidity should help this trend of "counter-cyclical" policymaking.
Do you appreciate what you have just read, dear reader? Do you understand the black maw of the vicious, velvet trap that is now being readied? Unlimited money printing is to be aimed at a grievously wounded world – and the antidote is to be MORE GLOBAL REGULATION.
Over and over we see this sort of generic dominant social theme in action. Having unleashed a fear-based promotion (a new Great Depression), the elite now suggests that only their international agencies can rectify it.
So let the central banks print away! The regulators have figured it out. They've put into place something called Basel III. This "solution" has been initiated by the same banking community that has hollowed out the life savings of hundreds of millions; it is supposed to ensure that hyperinflation is damped and the velocity of money is damped.
Here at the Daily Bell we quantify the fear-based memes of the elite and their efficacy. We've kept track not only of the successes but of the failures as well. And in our view, the failures are mounting up.
Most recently we suggested that the current chaos in the Eurozone was yet another elite failure – that ideally, Britain wouldn't have had to pull away from the euro but would have drawn closer to the EU.
In fact, Britain's pullback itself may be not only an acknowledgement of the troubles the elites are having in creating their one-world order, it may also be a STRATEGY – one creating a favorite tool, the Hegelian Dialectic.
That's how you move the socio-political discussion in the "right" direction. You need opposing sides to create first a thesis and an antithesis and then, finally ... a synthesis. In this case, the current economic chaos is the thesis, and the BIS's idea of money printing is to be the anti-thesis.
What is to be the synthesis? Well ... perhaps one prints (relatively) slowly, at least at first. Of course, speed is relative. What is "slow" can soon become "faster." The Hegelian Dialectic, in fact, is likely merely a trick designed to create a false sense of satisfaction in those who participate or follow but do not have an understanding of the grand design. No, from our point of view, the "controllers" are making it clear what is to be the next step of the "great game."
Conclusion: Can you hear the noise? It is not a train headed down the track. It is not Superman flying through the air faster than the speed of sound. It is a printing press, running hard toward ruin.
Posted by Anthony Migchels on 12/22/11 09:16 AM
Well, the Government may be good at spending, but so are most people.
Why let the Government spend it into circulation? It will probably just use it to finance some nice little war, or 'public works' nobody needs, but which are very profitable to the insider businesses getting the contracts.
Let the Govt give the money to the people. They know where to spend it best.
I agree with you on the interest thing. Though it is even much worse than you think:
Click to view link
Posted by Anthony Migchels on 12/22/11 09:13 AM
Money is that which we agree to use as a means of exchange.
In a free market, the cheapest and most stable means of exchange will prevail.
Those would be well managed units based on interest free credit.
Posted by BASILOVECCHIO on 12/15/11 05:07 PM
****"That's how you move the socio-political discussion in the "right" direction. You need opposing sides to create first a thesis and an antithesis and then, finally ... a synthesis. In this case, the current economic chaos is the thesis, and the BIS's idea of money printing is to be the anti-thesis"****
THE SYNTHESIS:Monatary Sovereignty could print all the currency needed but with interest being paid to insure the quality and quantity as well as the usage of that currency.
Quoted from : Click to view link
April 24, 2001
By Michael Hudson
"... . The Mathematics of Compound Interest
A syndicate of less than one hundred American capitalists, if allowed to collect interest on their capital at a low rate and re-invest for 150 years or less, would at the end of that time own the earth and all real and personal property thereon. This is a simple mathematical proposition, capable of exact demonstration, and any one who doubts the truth of this statement may set all doubts at rest by computing compound interest on one and one-half billions of dollars for one hundred and fifty years, at five per cent per annum.
... Flürscheim elaborated that 'All exertions, all improvements in the methods and tools of labor, the strictest economy, the severest self-denial, are powerless to compete with the rapidity of self-increase possessed by capital placed at compound interest, and they cannot keep up with its demands.' To illustrate the dynamic at work, he composed an allegory (pp. 327ff.). Many ages after man was driven from Paradise and told 'to earn his bread by the sweat of his brow, mercy began to prevail. A loving angel was sent down by the Great Master, charged with the task of lightening the burden. The angel's name was Spirit of Invention. He began his work by teaching man to make useful tools' and tame animals, and in time to mobilize water power, air and wind power, fire and steam power to drive machinery.
'It seemed that at last the golden era had come of which men had dreamed for ages past,' but 'that envious spirit, that fallen angel, Satan,' was jealous that his own empire would soon be over for ever. Among the follies of man, one little imp, called Interest, managed to attract his attention. 'What is the matter with you, Interest?' he asked the saucy imp. 'You don't seem to be so dejected as your comrades are?'
'Why should I be dejected, master?' replied the spirit, 'Am I not one of your favorite soldiers? Haven't I always been victorious under your august guidance?'
But Satan answered sadly, 'Alas, You are no match for the Spirit of Invention.' The Interest imp, however, volunteered to demonstrate his prowess in a dual, helped by his son, Compound Interest.
At this point, Flürscheim introduced an image that Napier had suggested at the outset of his second book on logarithms in 1617, the Robdologia, likening the principle of geometric increase to that of a chess-board on which each square doubled the number assigned to the preceding one. An old Persian proverb told of a Shah who wished to reward the inventor of chess, a subject, and asked what he would like. To the Shah's surprise, the man asked 'as his only reward that the Shah would give him a single grain of corn, which was to be put on the first square of the chess-board, and to be doubled on each successive square; which, to the surprise of the king, produced an amount larger than the treasures of his whole kingdom could buy. It is this kind of chess-game which capital is continually playing with labor.' The remarkable growth of compound interest soon swallowed 'products, capital, the earth and even the workers.'
This was in essence the ploy that Flürscheim's Compound Interest demon used. 'Look at this chess-board,' he told the angel against whom Satan had pitted him. 'It seems just like any other chess-board, with sixty-four squares,' but it 'had the peculiar quality of extending the dimensions of the squares, so as always to be large enough' to hold whatever was placed on them. Instead of asking for grains of wheat to be placed on them, the Interest Imp asked for soldiers. 'Now, listen well to what I propose,' he said to the angel, pointing to the latter's huge army.
I enter the first square with my son, and you match one of your warriors against us. We enter the second square doubled in number; you send two more warriors - and so on every succeeding square. . . . When we arrive at the last square, and you have a single soldier left after occupying the same, we shall declare ourselves vanquished, and Satan with all his troops will leave this world for ever. If I win, you and your army are to be at the commands of my master. Are you agreed?
The angel agreed, expecting his horde of soldiers to easily exceed the number that the Interest Imp and his son, Compound Interest, seemed likely to accrue.
In the beginning the angel laughed, for, though twenty squares were passed, no noticeable diminution of his forces was perceptible. Demon Interest said nothing, but attended to business, quietly doubling his army on every succeeding square. At the thirtieth square the angel ceased to laugh, and soon saw he was lost.
'I despised you, little fellow,' he signed despairingly, 'and I am punished for my vanity. I see there is no use fighting against you. Demon Interest is more powerful than the Spirit of Invention. I am your slave. Command your servant!'"
THIS IS THE TIPPING POINT !
'I am the only servant of my great master,' dryly replied the demon.
"Here I see him coming. He will give you his orders.'
And Satan gave his orders. He commanded that the angel was to continue in his work with all his troops, which were to be increased with all possible exertion, so that humanity - which did not know the nature of the antagonist it had to fight against - would always keep in fresh hope of final success when the new troops were forthcoming. But as fast as they appeared, Demon Interest was to send forth a larger army to capture the new forces, to enslave them, and - instead of their benefiting man - make them increase the slave-chains which weigh him down.
WHAT IF DEMON INTEREST WERE TO ANSWER? ,I will now be the servant of a new master,one that will pursue happiness for all mankind.".
AS FOR Monetary Servereignty Click to view link
Posted by truthbetold on 12/15/11 01:38 AM
Excellent description of our present economical condition... ... ... we are on the treshold of some radical changes unseen by my generation i am 62 years old i've been retired 1 year... ... ... . which i think was a mistake... ... .l have to catch myself for my preoccupation with gloom and doom... ... my friends call me dr. doom my wife can't take much more of me,but i can't help but recognize the crap thats being done to the country that i fought for and others died for... ... .my grandson wanted to be a marine untill i told him the truth... ... .i'm sick and tired of being sick and tired
Posted by dave jr on 12/13/11 05:28 PM
I agree that the issuing power should be taken from the banks, but I don't trust it in the hands of 'the people', currently a democracy, played out into a mobacracy.
I advocate more a hands off approach. Money has to be allowed to emerge from its source of value.
I do not have the faith that you seem to have, that government is the source.
Thomas Jefferson was one smart cookie. Lets heed his warning. It is less about public vs private. It is all about control.
Posted by BASILOVECCHIO on 12/13/11 05:15 PM
Thank you for reading.
A Challenge to the solution,-
" but your missing... just to keep that FRBA from creating too much money"
The FRBA could never print or electronically produce too much money even though it as a Monetary Sovereignty could print unlimitally.
BECAUSE the money is distributed as a loan with a "POISON PILL" attached,namely compound interest,this allows all of the money to come back to the creator ,so much of it isn't even payable that the lender (FRBA)
has only the need to redistribute the initial principal. A $1 trillion dollar loan with a rate of 3% for 24 years means a payback of $2 trillion.
A benevolent lender (FRBA) will help the borrower to reach payment in full;BIS will demand austerity,whatever it takes to get to payment even after all your possesions demand servitude.
Posted by BASILOVECCHIO on 12/13/11 05:01 PM
DID YOU READ ?... Click to view link ?
A bank that is owned by the people,of the people,for the people !
ONE SHARE-ONE VOTE.ALL PROFITS MUST BY LAW GO TO FUND THAT GOVERNMENT that has a mandate :to form a more perfect union,to insure life,liberty, and the pursuit of happiness.This FRBA must be absolutely transparent-open mike,open video with todays great technology,WE THE SHAREHOLDERS (THE PEOPLE)will knowq what is happening WHEN it happens!
Posted by BASILOVECCHIO on 12/13/11 04:52 PM
read "The All Inclusive Solution" Click to view link
The Federal Reserve Bank of America would monitor tha quality and quanity of money and must operate with ABSOLUTE TRANSPARENCY!
The FRBA corrects the mathematical problem of "COMPOUND INTEREST" by REDISTRIBUTING the principal and interest back into the economy,that's the only way to turn that WMD into a PROSPERITY BOMB.
READ IT-CHALLENGE IT-OR ENDORSE IT.
Posted by BASILOVECCHIO on 12/13/11 04:41 PM
Well,it is great to see that SOMEONE GETS IT! Yes,not only similar,more like exactly BUT USING THE PROCEEDS FOR THE FORMATION OF A MORE PERFECT UNION,GENERAL WELFARE,AND THE PURSUIT OF HAPPINESS.
No salvery,no inflation because the money comes back to its maker via "the most powerful force in the universe".We can turn this WMD into a positive force.START GATHERING by the people,of the people,for the people.
Amend the Federal Reserve Charter ,take away its power for the banks and give it to the people to whom it rightfully belongs.
As Thomas Jefferson said,'I believe that banking institutions are more dangerous to our liberties than standing armies.If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around (these banks) will deprive the people of all property until their children wake up homeless on the continent their fathers conquered. The issuing power (of currency) should be taken from the banks and restored to the people,to whom it properly belongs,'
'THE ALL INCLUSIVE SOLUTION. THE FEDERAL RESERVE BANK OF AMERICA' (Click to view link)
Posted by dave jr on 12/13/11 09:20 AM
You will soon need thousands of these 100 trillion dollar coins on reserve.
You seem to be fixated on money which is worthless without it representing resource and productive capacity. With out that, the only other backing that can possibly work, is force. Then we have 100% slavery.
If you took anything away from this article, you should realize that what you suggest, is similar to what the BIS is doing. The resources of the earth, and the productive capacities are being gathered up into the hands of the elite, and leaving the middle classes with arm loads of soon to be worthless currencies.
But don't worry, we will all be millionaires soon.
Posted by BASILOVECCHIO on 12/13/11 07:12 AM
"There is the rub"
If one thing were to be the cause to our demise it would be "interest"
The one major flaw to democracy,the paying of interest to a party that would use that interest for their own good.
Quote from "The All Inclusive Solution" Click to view link "If it were possible to sum up the single greatest flaw to the American form of its democratic capitalism ,it would be :It allows for the 'most powerful force in the universe'… to quote Einstein," compound interest" to be used against that democracy.
This "most powerful force" is being used only for the enrichment of a few (1%) and the servitude of all others (99%).
The lender becomes the owner of all the money based upon the act of compounding at any rate within a long period of time.The present system has to change .
Private banks are lenders to the taxpayers who become borrowers. They are allowed to charge interest to taxpayers for the use of their own money.
Private banks are allowed to 'create money' by fractionation of money on hand and use that
newly created money to gain more money. A cycle that commands total money control or it must bust. The real kicker is that the borrower by today's system guarantees the lender they will not lose their money by covering any of their losses. The taxpayers are guarantors of their own servitude !
Quote Ellen Brown,"We have got to stop paying interest on our own money"
*******Challenge or Endorse***Would The Federal Reserve Bank of America
resolve this system?
Posted by mulen on 12/13/11 07:09 AM
What a waste of a life trying to rule the world some of the happiest people i know are poor . The BIS i'd love to meet these stuckups man they must be really pumping the prozac lately.The exchange of wealth happening in the world is breathtaking most U.S citizens are living in denial their pushing credit cards to teenagers again. I thank this website for important idea's i hope never develop but deep down i know theirs a financial holocaust headed for the states.I talk to many average day folks who have no clue what real money looks like amazing . The end of the day the bankster waste their precious time on earth trying to rule it pretty funny if you ask me if there wasn't such dire consequences see ya.
Posted by WD on 12/13/11 02:50 AM
Amid all this talk about the banksters, has anyone seen these? Perhaps the US government has long since supplanted the banksters covertly while still being able to blame them. 5 part video --
Click to view link
Click to view link
Click to view link
Click to view link
Click to view link
Can anyone shed any light on these?
Reply from The Daily Bell
So much history and manipulation being uncovered and presented now. It is like an avalanche rolling down a hill. And there are no arguments left to buttress the current system. 75 years ago, you could argue it hadn't been tried. But now it HAS been tried, and hasn't worked. THIS is the problem ...
Posted by vivek on 12/13/11 12:11 AM
Excellent spotight, as always. The BIS is the most visible of the hidden hand's control centers. Another one of course is the City of london, financially speaking.
Here is something interesting. India got it's CB in 1933 (we were firmly in the hands of the British at the time) and supposedly were given our independence back in 1947. Of course nothing of the sort actually happened. We have a huge CB that controls money supply in India and answers to the BIS.
Game over, freedom is a joke, a cruel joke foisted upon us.
Interesting too that it is based out of the Red Cross state, Knights Templar and all.
Strange days, but something tells me a planned un-ravelling is in our very proximate future.
Click to view link
Posted by eliberator on 12/12/11 09:26 PM
Errata... .the biggest Chinese Communist enterprise located... .
The way it reads one could tend to lump all the enterprises together with only 3k employees. The one biggest has over 3k employees.
This data taken from a Saturday night C-Span report by a Chinese Communist Party Secretary speaking at an annual National Governors Association meeting in Utah a couple of months ago.
Posted by eliberator on 12/12/11 09:19 PM
Please tell the POTUS by lowering taxes one can increase revenue because the lessened suppression on the reinvestment allows increased production to collect taxes on. Of course, who's revenue is at question also. By decreasing taxes to zero one increases the potential revenue of the taxed to infinity??? LOL, semantics until it comes time to write that check!!!
And of course that "somewhere else" is our well known Communist friend China. And where of the 710 Chinese communist enterprises in the USA with over 3,000 employees located? Why, south Chicago, of course!!!
Posted by coldbeer on 12/12/11 09:01 PM
I'm not an overleducated type, but i'd say I have a lot better understanding of this stuff than 85% of the population just from studying it day in and day it for a long time now.
I have a couple questions:
1. How can they expect to create a world government when they can't even get the likes of the EU to succeed AND it appears to me as if they side step Russia and China as if they don't exist. "Oh, we'll just worry about them later after we have everyone else under control."
2. Since all indicators point towards war, and since we now have the capability to literally blow up the planet 10,000x or better, what good can they hope to accomplish by engaging in something that will destroy everything? Are they really so stupid as to believe they can win a war against Russia and China?
My conclusion is that there will be no winners(unless you consider the rest of your life underground and owner of all radioactive waste on the surface). Things will get worse and worse. All roads lead to war. The END.
The elite are just a bunch of crazy a--holes, no different from any in history, except this time they really can wipe out all of mankind and somehow they think they can emerge victorious from this?
Personally... .I would just assume get the show on the road. I've already gone from $40hr to unemployment to nothing and barely surviving. I don't need 20 more years of torture. Do I want to see it happen? No. Unless we go on a huge elite killing spree I don't think it's possible to avoid it.
Posted by eliberator on 12/12/11 08:57 PM
Articles like these are great!
But there is one big glaring error that is constantly missed.
It is overlooked, it is MIA (missing in action).
And I am tired of the situation, so I am posting this to point it out!!!
In actuality someone has to monitor the printing presses in order
to HAVE money. The real situation is having to have interest on the money printed in order to place it into circulation. This creates a mathematically impossible to correct deficit.
The money is created, the interest is not, no matter how small.
So perhaps have the money printed up, do away with taxes even, have the government do what it does best, spend it into circulation. But do not have one cent of interest paid by the US Federal government to put it into circulation. Have it collect the interest. To hell with the articificial
deficit instantly created by the current method.
Posted by nervo on 12/12/11 08:20 PM
BIS ----------- Read "Trading With The Enemy", Chas. Higham. In the runup to, and during the 2nd World War, the BIS Board included the Rockefellers (Chase Manhattan & Standard Oil) and the head of I.G. Farben.
Farben designed, financed and built the ovens that reduced the jews to ash at the same time BIS was accepting deposits of the gold taken from the dentures & jewelry of those Jews in Auschwitz, Dachau, etc. At the same time BIS was accepting the gold looted from the countries being overrun by the German war machine.
At the same time, Standard Oil (the Rockefellers) were shipping gas & oil to the Nazis through their South American branches, thus keeping the Nazi war machine going - while Americans were dying in Europe.
Gosh, I wonder what the BIS agenda morphed into after they'd gotten away with this kind of global bloodsucking? But then, INTERPOL made extensive use of ex-Nazis in creating their agency. Hair raising evil - on both sides of the Atlantic.
Posted by BASILOVECCHIO on 12/12/11 07:29 PM
LET'S SEE IT WE CAN GET MORE RESPONSES:
From this site:Click to view link'The refusal of King George to allow the colonies to operate an honest money system, which would have freed the ordinary man from the clutches of the money manipulators, was probably the prime cause of the revolution'. Benjamin Franklin
'The refusal of US representatives to operate an honest money system, which would free the ordinary man from the slavery of the money manipulators, will come to be known as the prime cause for the occupy movement and the end of reign for the Banksters and Polichickens who turned their backs on the American People'. J Glenn Lowe