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The Growing Power of the Bank for International Settlements

Joan M. Veon



The rusty colored building that houses the Bank for International Settlements (BIS) in Basle, Switzerland, looks like any other round office building, yet a small sign by the steps leading to its specially designed glass doorways, tells you it is private property.


When the BIS holds its annual meeting, those who control the world’s monetary system—the central bank ministers of the world, who look like ordinary businessmen--walk over from the nearby hotels.Once a month, the Group of Ten Central Bank Governors meet to determine currency values, international banking rules and regulations, which country is going to grow and which country might even need sanctions.What really sets this bank apart from all the other central banks is that it lends to other central banks and does business only in gold.According to their annual report, they have assets of 192 tons of gold.

This new world economic order has been evolving since 1930 when an American, Owen Young, became the designated creator of the “central bank’s bank.” In his book, Tragedy and Hope, Dr. Carroll Quigley, Bill Clinton’s mentor at Georgetown University, said this, 

[T]he powers of financial capitalism had another far-reaching aim, nothing less than to create a world system of financial control inprivate 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 feudalistic fashion by the central banks of the world acing in concert, by secret agreements arrived at in frequent private meetings and conferences.The apex of the system was to be the Bank for International Settlements, a private bank owned and controlled by the world’s central banks which were themselves private corporations.

Interestingly enough, we now live in a world in which there are no financial boundaries.Working through the Group of Seven (G7)and beginning in 1980, it was the BIS which helped to tear down of these borders, thus creating a stateless flow of $1.9T which runs around the world on a daily basis looking for the highest return or quickest play.In turn, the need to manage this global game of financial roulette has allowed to BIS to develop rules and regulations to bring all of the world monetary systems into compliance with them.

In 1995 the BIS began to orchestrate the beginnings of the final takeover of the world monetary system. All one has to do is read their documents which are yours for the asking most of this has not been explained to we the people, all of the major newspapers, financial publications and television reports have touted it as being “good for the banking system and the stock market.”As I have followed its progress, three key points should be made. 

First, in 1913, Congress voted to transfertheir control of our financial system to thisprivate corporation.The Federal Reserve joined the Sveriges Riksbank (Sweden) founded in 1688, the Bank of England in 1694, the Bank of France in 1803, the German Bundesbank in 1870, the Bank of Japan in 1882 and the Bank of Italy in 1893, in transferring monetary control to a private corporation.Their goal is to lend money to their respective government so that it will pay them interest forever!If you doubt this arrangement, your dollaris a “Federal Reserve Note.”This is why “we the people” cannot forgive ourselves the interest on our debt.We don’t owe it to the Treasury!

Second, when the financial barriers between countries came down, it created the need for more central bank oversight. As a result, the mandate of the BIS to create new rules, regulations and supervision in areas that it heretofore had no control, increased.Hence when the G7 called for “Strengthening the International Financial Architecture,” it allowed them an official mandate to seize control of new areas.The Basle II accord,to be implemented by 2006, will govern how much capital banks must set aside to cover risks of default on loans.This will affect how much money banks have to lend and which bank has enough capital to stay in business.

Third,Congress this week is discussing and looking to passS2673 that transfers the oversight for corporate accounting to an international foundation that is developing international accounting rules. Its Chairman of the Board of Trustees is former Federal Reserve Chairman Paul Volcker.Trustees include BIS Managing Director Andrew Crockett, the next Governor of the Bank of England. In short, the wolves (international bankers) are now chasing the foxes (all those who already have access) to the chicken coop which is the investments and savings of you and I.

In closing, at their July 8 annual meeting, the BIS declared that the global financial system had held up well in light of unexpected shocks to the system.When asked about the fact that while low interest rates helped create a robust housing market if it might just be the next “Nasdaq” because of the increased amount of personal debt,the response was muted.

While the old adage says, “He who owns the gold makes the rules,”it is interesting that in the same city which the BIS is located, these words from 1601 are found on the walls of the old town hall,“Freedom is greater than silver and gold”!