Basel Banking Committee Ready to “Strangle” Economy

real-agenda.com

The World Financial Order is almost complete. New measures will keep bailout monies in banks’ coffers, increase interests on loans while reducing credit availability.

A group of un-elected regulators has come to an agreement on how to strangle the global economy even further, while presenting their package of measures as “saving” policies” for a coming financial crisis.  The Basel Committee on Banking Supervision -current owners-  established more rules to exercise tighter controls on banks and the very financial system they managed to break by design.

At the top of the list, Jean Claude Trichet, warns that the no implementation of these policies would let banks free to do anything they want -he himself is a banker- and that the new rules would secure bank reserves for difficult financial times.  The package of rules was adopted on Sunday, and it has a very clear goal: “To protect International Economies”.  This confirms the group’s intention to establish a global financial system headed by no other than themselves.  Such Order would abide by their rules no matter what effects such rules have over individual national economies.

According to their published document, banks will have to triple their cash reserves -from 2 to 7 percent- which in their minds would act as a cushion for difficult times or when banks invest in junk financial products.  That amount is in itself ridiculous, if one takes into account that banks’ investments in dubious financial products is many times larger than 7 percent.  What this measure will do is to give banks an excuse to increase interest rates on loans and reduce their loan spending programs.  The reduction in available credit will achieve a goal the bankers had yearned for and that could not accomplish through the failed cap & trade fraudulent scheme: to bring global economic activity to a halt.

“The agreements reached today are a fundamental strengthening of global capital standards,” said Jean-Claude Trichet, president of the European Central Bank and chairman of the banking supervision group.  Trichet commanded the group dismissing some bankers concerns that these new measures will require them to curtail credit, which in turn would cripple economic growth. He said the new rules would “contribute to long-term financial stability and growth will be substantial.”  Other bankers sided with Trichet, saying the modest effect on growth or borrowing would be a small price to pay for a less explosive financial system.

What these new rules would achieve -if anything- is the legalization of bad investments, as banks will not have to worry about how to pay for loses.  They will have large amounts of money from investors to cover their backs.  In addition, banks will continue to count on nation states to make up for any shortfalls, as more bailouts for troubled banks have not been taken off the table.  The new rules issued by the group that includes former Goldman Sachs executive Ben Bernanke, will be approved in November by the G-20 before they are handed over to individual countries before they become binding.  Nation-states will have until January 1, 2013 to adapt to the new rules.

“Banks will unarguably be safer institutions,” said Anders Kvist, representative of SEB, a bank that operates out of Stockholm.  Shouldn’t Nation-states have the prerogative to regulate banks operating in their territories?  Meanwhile, bankers continue to point out the new measures will reduce the amount of available credit for borrowers but were not bothered by the other side of the coin: Centralized Control.  That is what this is all about.

The Basel Committee on Banking Supervision, again, a group of un=elected bankers mandates banks to “protect themselves” when they invest in financial instruments of dubious origin.  How about letting banks operate freely and collapse if they have to, due to their irresponsible investment practices?  The new provisions, called a leverage ratio, will obligate banks to hold reserves against all their money at risk.  That is like the nanny global order telling their children not to pick their noses in public.

Of course, there are those to whom global financial regulation is never enough.  Some G-8 countries were pushing for an additional 2.5 percent increase, during “good times” of economic overheating. According to the document released by the group, the rules would be adopted gradually to give banks time to adjust.  Some of the measures will not take effect until 2019, with banks having to start raising cash in 2013.  Too little too late?

The Basel Regulators left the door open to imposing stricter rules on “important” banks, whose problems -irresponsibilities- can infect the whole financial system.  The banksters’ representatives in the US -The FED, FDIC- issued a common statement saying the agreement is a significant step towards reducing the occurrence of future financial crises.  Although Nation-states still have the ability to reject these new regulations and create and approve some of their own, the international financial order has been clear that failure to adopt their newest package of rules will be punishable with harsh changes in credit availability, large increases in interest rates and overall restrictions for financial aid.  Once the new polices are adopted they become binding and countries cannot abandon them.

In the meantime, the Basel group will allow banks to continue to receive government bailout money to raise capital through 2017.  Those banks that are not capable of raising enough cash may be obligated to merge or perish as part of the consolidation and control package the regulators have in mind.  Only in the US, it is estimated that some 400 banks are on the brink of failure.

Deutsche Bank in Frankfurt said it intends to sell shares for 9.8 billion euros to increase its reserves.  Other banks that will do the same include Société Générale -a bailed out bank- in France and Lloyds in Britain. The rules imposed by the Basel Group also include paying banks -with taxpayer money- to dispose of toxic assets such as derivatives.

European Central Bank: ‘Trillions only buying time’

By Luis R. Miranda
The Real Agenda
May 16, 2010

The Corruption and Lies from the European Central Bank and its branches around the world have no limits.  A year ago, its office in the United States -Federal Reserve- requested $700 million to ‘save’ the economy.  This, later we found out, turned out to be a lie.  A lie, because the money was not used to perform economic magic as they promised, but also because the total provided wasn’t even close to $700 million.  Try $25 billion.  A few days ago, the European Union came up with a $1 trillion aid package that, they said, would keep the region from crumbling down.  Now, the very same ECB says, the $1 trillion will only buy time.  Time for what?  I ask.  Answer: Time for the banksters to set themselves up to completely collapse the world economy.  Is there anyone who still does not see it?

This has been the pattern shown throughout history where the elites headed by the banks cause trouble to then present a ‘miraculous’ solution that further helps them consolidate power and control.  This time, however, is final.  The endgame has played out and the banksters played all their cards for a final push to own everything and everyone, once and for all.  The economy and the state of the world has precipitated down so uncontrollably fast, that not even they can save it this time.  Not that they ever intended.

One by one, the nations that have been preyed upon by financial vultures throughout 100 years are quickly lining up to take a leap off the edge of the canyon.  As we recall, it all began in Iceland, where authorities now seem to be catching up with corruption by jailing and suing banksters.  It noticeably moved to Greece, where the fiscal debt cloud completely wrapped an otherwise paradisiacal country.  With Goldman Sachs as the spear bearer, the banksters added one more nation to their precious collection.  Still no banksters jailed or sued.  Instead, Greece succumbed to the E.U.’s dream to harness the greeks pension funds and savings by further immersing the country in debt through an aid package that secures them the mediterranean jewel.

Two giants now line up to follow on Greece’s and Iceland’s steps.  Portugal and Spain initiated the process of collapse by cutting salaries, freezing pensions, and raising taxes.  With populations on the brink of social collapse, both nations could see Thailand-like street protests sooner that expected.  The reason why it did not happen yet?  Social Engineering, of course.  People’s attention is successfully diverted towards soccer and tennis tournaments as well as imaginary volcanic ash.  With around 20% unemployment both Spain and Portugal had a smooth ride down so far, but the latest austerity measures will surely deflate the rubber cushion they have been sitting on for the past two years.  The tax hikes and social services cuts were loudly applauded by the European Central Bank as well as the leader of the bankrupted world, Barack Obama.  That applause originates on the fact that it does buy time to keep on consolidating power and resources.  Every time a country announces a package of austerity measures it means more money from the already taxed-to-death people is taken to pay banks for loans previously contracted by those countries.  It is the bank’s prerogative to call on the country to pay the loan in full if so it desires.  That is what happened in Iceland, Greece and that is why they need to be bailed-out.  The problem is the bail-out comes from the same banksters who they originally got in debt with.  See the idea?  Understand why is it called Consolidation?

The way in which banks operate is like a fisherman who catches  a big fish.  The man sets the bait -the bank offers the loans- the fish bites -the countries accept the loans- the fisherman can then choose to pull the fish out slowly, hoping it will further get caught on the hook, or can decide to give it a big pull.  The first choice will make the catch almost a sure thing, but it will take longer.  The second, may reward the fisherman faster, but the result might also be that the cord is cut and as a consequence the fish is lost.  Almost a century ago, the banksters decided to try the first option, to pull the cord slowly, to let the fish get comfortable.  Now, the fish -the people- found out it is trapped and it is strongly pulling back.  The fisherman is desperate because the fish may get away and is seriously considering giving it a last big pull.

It seems impossible for the world to miss the outcome of the economic disaster we’ve been in for the past decade, which was only masked by cooked up growth and recovery numbers.  With no real employment generated in the largest economies of the planet, even Jean Claude Trichet showed his pessimism about any hopes of a positive and happy ending.  He, of course, has known about it for a long time, probably as long as he has been at the ECB.  He said last week that the United States was in a similar situation as Greece.  Other banksters, accomplices of Trichet and the elites have also contributed to the list of memorable talking points.  George Soros, for example, said the Euro was in a very precarious situation and very close to collapsing.

One can easily see the desperation by the elites when Nicolas Sarkozy punches tables and Angela Merkel reluctantly participates of an aid package that would theoretically save Europe from doom.  That is because it will not really save anyone.  As the ECB says, it just buys time.  The financial collapse precipitated even faster due to the fact more people understand now what all this fraud is about and how they were bamboozled for the last few decades into trusting supra-governmental organizations with their savings and pensions.  Like someone used to say, you can fool some people sometime, but you can’t fool all people all the time.  The world has been oppressed for centuries, even thousands of years by empires, banksters and elites.  Now the coin has flipped and the pressure is on the oppressors.  They have to choose between playing a slow collapse card, or a doomsday-size collapse.  The trilateral Commission met this month.  The Bilderberg Group meets in June.  The fisherman is desperately thinking about giving it a last big pull.

Stay tuned.