by James Corbett
September 15, 2015
As all eyes turn to this week’s Federal Open Market Committee meeting for an answer to the will they / won’t they Fed rate hike question, we face another stark reminder of how the global economy is increasingly at the whim of the central bankers with their hands on the money spigot. The would-be “Masters of the (Phoney, Manipulated) Universe” known as the Federal Reserve board have the power to send the global economy into a tailspin by hiking rates, causing a giant unwind of the almost-never-mentioned dollar carry trade in emerging economies. Or they can waffle again, delay the decision, and keep markets in the precarious limbo they’ve been since the end of the QE3 party and the removal of the punch bowl. They could even, as some suggest, concede their utter failure to even understand let alone implement an easing-based “recovery” and try again with QE4.
But wait, there’s a bold new truth-teller on the horizon. One that’s willing to talk about the insanity of this central bank-manipulated economy: “Financial markets have worryingly come to depend on central banks’ every word and deed,” says the oracle. Is it a bird? Is it a plane? No, it’s Claudio Borio, chief economist of the Bank for International Settlements!
And the plainspoken, obvious truths about the global economy’s precarious position don’t stop there. We live, Borio noted in a press conference late last week, in “a world in which debt levels are too high, productivity growth too weak and financial risks too threatening.” The market mayhem of August (“remarkable” gyrations of oil price, “sharp price moves with little trading” in FX markets, “dislocations” of equities markets) “were not “isolated tremors, but the release of pressure that has gradually accumulated over the years along major fault lines.”
You would be forgiven for thinking that such a screed came from some alternative market commentator, someone far outside the mainstream and likely to be branded as a fearmongering conspiraloon by the economic cheerleaders at CNBC. But the fact that it came from the Bank for International Settlements should actually not be surprising. As Ambrose Evans-Pritchard noted in his article on the BIS’ latest report: “The venerable BIS – the so-called ‘bank of central bankers’ – was the only global body to warn repeatedly and loudly before the Lehman crisis that the system was becoming dangerously unstable.”
The crash course for those who don’t know about the BIS: It was founded in 1930 as an outgrowth of Rockefeller Trustee Owen D. Young’s so-called “Young Plan” to chain German payments for the unpayable WWI reperations scam to a consortium of financiers led by J.P. Morgan. It is located in Basel, Switzerland but is above Swiss law by terms of a treaty that makes the bank “inviolable” and free from search, seizure or interference in any way by Swiss authorities. And it was identified as the apex of a global system of oligarchical control in a shockingly frank passage by Georgetown historian (and Clinton mentor) Carrol Quigley in “Tragedy and Hope”:
“The Power 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 feudalistic fashion by the central banks 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, a private bank owned and controlled by the world’s central banks, which were themselves private corporations.”
It may at first be confusing as to why the BIS is now seemingly spreading the word about the coming collapse that those in the mainstream have been pooh-poohing for so long. But in fact, this should not be confusing at all. The BIS is playing the “good cop” in this global charade, the champion of economic wisdom and monetary caution in a land of central bankers who are out of control. The BIS is currently building up its credibility, acting as the sage voice of wisdom that you only find out afterward you should have been listening to all along. And why? So they can spend that credibility in the crisis. It is only by being the “only global body to warn repeatedly and loudly” of the coming collapse that they can expect people to listen to them about the “solutions” for this crisis.
The phoney nature of this charade is not difficult to see. The BIS is comprised of the heads of the central banks of most of the nations of the world. It IS, in a key sense, those central bankers. They actually wrote the paper exposing the dollar carry trade that they are now warning may unwind catastrophically when monetary policy stops working and the real credit crunch begins. Do you think the Fed really “doesn’t understand” what quantitative easing has done or how it works, as Bill Dudley would have you believe, or do they understand perfectly well because the plan is in fact to pop the bubble and create the chaos that is necessary for their economic “New World Order”?
Note how when the Cyprus crisis unfolded before our eyes and we witnessed the birth of the banking bail-in it was revealed that the BIS had been there in the background all along, quietly creating the regulatory framework for just such an event through their even more shadowy “Financial Stability Board” spinoff.
The BIS knows what’s coming as a result of these central banking manipulations. They know what results when you combine the biggest bond bubble in history with an eight-year bull run in stocks that defies all economic reality. It isn’t pretty. It isn’t meant to be. Order from chaos never is.
But rest assured, the BIS will be there in the midst of the crisis, the ones who saw it all coming and tried to warn you about it, but you just didn’t listen. The good cop who is going to be there for you and restore order to global markets. The ones who provide the petrified masses the New World Order they’re clamoring for. Just as those who profit from false flag events always do.
And when they do, don’t you believe them for one second. There’s no good cops or bad cops, only banksters, and they are all in on it. And the way out of this mess isn’t going to come from them.