The Bank for International Settlements’ Backdoor Betrayal

By Bruno de Landevoisin

The-Bank-For-International-Settlements-at-Night-Photo-by-Wladyslaw

The Bank for International Settlements, otherwise known as the BIS, should more aptly be named the Bank for International division and domination.  It’s clearly an institution with global reach, whose hidden covert purpose is to impose the financial globalist’s agenda on all sovereign nation states.  The above luminous photo is of their luxurious Headquarters.

Ten times a year, once a month except in August and October, a small group of well dressed men arrives in Basel, Switzerland. Carrying elegant overnight bags and stylish brief cases, they discreetly check into the Euler Hotel, across from the railroad station. They come to this quiet city from places as disparate as Tokyo, Paris, Brasília, London, and Washington, D.C., for the regular meeting of the most exclusive, secretive, and powerful supranational club in the world.

Each visiting member has his own office at the club, with secure telephone lines to his home country. These elite international bankers are fully serviced by a permanent staff of about 300, including chauffeurs, chefs, guards, messengers, translators, stenographers, secretaries, and researchers. Also at their disposal are a brilliant research unit, well equipped medical facility and deep underground bunker, as well as a secluded country club with tennis courts and a swimming pool, a few kilometers outside of Basel.

Undoubtedly, we have all heard of this all important international organization, but how many of us really know much about it, or even understand its intended purpose. The only thing that I knew about this powerful global entity was that it is often described as the Central Bank of Central Banks. Clearly, we all need to know more, let’s constructively begin with some benign elementary historical background transcribed from Investopedia, and also lay out the venerable institution’s specific functions & mission statement, directly from the BIS website itself.
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Founding and brief History of the BIS:

Founded in 1930, the Bank for International Settlements is the oldest global financial institution and operates under the auspices of international law. But from its inception to the present day, the role of the BIS has been ever-changing, as it adapts to the dynamic global financial community and its needs. The BIS was created out of the Hague Agreements of 1930 and took over the job of the Agent General for Repatriation in Berlin.

When established, the BIS was responsible for the collection, administration and distribution of reparations from Germany – as agreed upon in the Treaty of Versailles. After World War II, the BIS turned its focus to the defense and implementation of the World Bank’s Bretton Woods System. Between the 1970s and 1980s, the BIS monitored cross-border capital flows in the wake of the oil and debt crises, which in turn led to the development of regulatory supervision of internationally active banks. More recently, it has concentrated its efforts on the global financial stability and capital reserve requirement accords. The BIS has also emerged as an emergency “funder” to nations in trouble, coming to the aid of countries such as Mexico and Brazil during their debt crises in 1982 and 1998, respectively. In cases like these, where the International Monetary Fund is already in the country, emergency funding is provided through the IMF structured program.

The BIS has also functioned as trustee and agent. For example, from 1979 to 1994, the BIS was the agent for the European Monetary System, which is the administration that paved the way for a single European currency. Today, the BIS has become the central bank of central banks. The Bank now represents the interests of nearly all of the world’s central bank institutions, and manages a significant share of their reserves, including gold holdings. The organization now serves and presides over 60 central banks worldwide. Accordingly the BIS requires the capital/asset ratio of central banks to be above a prescribed minimum international standard, for the protection of all central banks involved.

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Black Friday Experimentation

Submitted by Jeffrey Snider  –  Alhambra Investment Partners

The initial estimates for Black Friday spending are pretty grim; you can make that interpretation based only on the press releases themselves as neither of the words “strong” or “robust” appear in them. According to ShopperTrak, actual sales (mall sales) on Black Friday itself were up almost 15% from last year but only because there was a clear revulsion against shopping on Thanksgiving Day. By their estimates, shopping the day of the holiday totaled almost $3.2 billion in 2014, which was up sharply from just $880 million on Thanksgiving Day 2012, but plunged to just $1.8 billion this year.

By quick count of that math, overall spending combined for the two “Black” shopping days was down about seven tenths of a percent – but it will likely be a larger decline than that as ShopperTrak has changed its estimation methodology turning direct comparisons against prior released data to somewhat of a discontinuity.

ABOOK Nov 2015 Black Friday ShopperTrak by DayABOOK Nov 2015 Black Friday ShopperTrak Combined

The figures from the National Retail Federation are far, far worse. Their total for average spending per adult, which ranges far beyond the malls, for the entire weekend was down sharply. Reported to be $380 in 2014, the initial estimates for 2015 are less than $320! That is more than 21% below the $407 in average spending estimated for Black Friday weekend in 2013. Online shopping estimates have not yet been reported, but several ancillary indications point to largely the same trends as last year (which is not good). Continue reading

US Stock Market – An Accident Waiting to Happen

Submitted by Pater Tenebrarum  –  The Acting Man Blog

Monetary Inflation Becomes Less Supportive of Asset Prices

We have recently discussed the sorry state of the junk bond market, as well as the noteworthy decline in the annual growth rate of US money supply aggregates. The latter has finally manifested itself not only in terms of narrow monetary aggregates like M1 (see chart) and AMS (“Austrian money supply”, a.k.a. TMS-1, the narrow true money supply), but also in the broader true money supply aggregate TMS-2.

 

awhPhoto via klyker.com

 

As a reminder, here is the most recent chart of the year-on-year growth rate of TMS-2 :

 

1-TMS-2, annual rate of growthYear-on-year growth in money TMS-2 has declined to its slowest pace since November of 2008, shortly after Ben Bernanke’s money printing orgy had been unleashed – click to enlarge.

 

Below is a chart of the annual growth rate of narrow money AMS from the transcript of the October advisory board meeting of the Incrementum Fund. US money AMS is calculated by Dr. Frank Shostak. The chart shown below originally appeared in his AAS Economics Weekly Report of October 5, 2015.

As you can see, the growth rate of the narrow true money supply has fallen off the proverbial cliff recently. It is fair to assume that it will continue to be a leading indicator for the growth rate of TMS-2. Steven Saville of theSpeculative Investor has recently mentioned that the sharp growth in euro area money supply (a chart of the growth differential between US and euro area AMS can be seen here) could well help to keep asset prices up longer, by offsetting the slowdown in US money supply growth to some extent. Continue reading

In the Financial Review: Australia heading for recession

Submitted by Yanis Varoufakis  –  The Yanis Varoufakis Blog

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Australia is headed towards recession, according to former Greek finance minister Yanis Varoufakis, who argues that weak domestic investment and the slowdown in China will ultimately put the brakes on growth.

Click here for the AFR site. Or..

Speaking to Fairfax Media on Monday, the one-time Sydney University economics lecturer said China was crucial to Australia’s fortunes, but the world’s second-biggest economy was “not at the stage of development where it can continue to defy the global deflationary atmosphere”.

“There will be a recession in Australia, because of the collapse of investment and because of the collapse of animal spirits – and this is because of what’s happening in China,” he said.

In that scenario, a short, sharp shock would be preferable to the entrenched, or secular, low or zero growth pattern that has taken hold in countries such as Japan.

Europe, too, is currently battling deflationary pressures, low growth, and negative real interest rates.

“The recession itself would not be the problem,” he said, “because some recessions are necessary.

“Some recessions are a bit like bush fires that clear out the forest, and help with the regeneration.

“The fear would be that this is something more secular, something more like stagnation, and a systemic crisis.

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U.S. Mint Gold Eagles See Sales Surge, Silver at Record

Submitted by Mark O’Byrne  –  GoldCore

“The U.S. Mint’s sales of American Eagle coins surged in November, with gold nearly tripling month-over-month and silver already reaching a new annual record as bullion prices fell to multi-year lows” reported Reuters.

GoldCore: US Mint Gold Coin Sales
The mint sold 97,000 ounces of American Eagle gold coins in November, up 185 percent from October and 62 percent higher from a year ago, after selling out of most of the 2015-dated coins as falling bullion prices attracted buyers.

Strong demand came as spot gold XAU= prices fell around 7 percent to the lowest in nearly six years. This was the gold market’s biggest monthly drop in 2-1/2 years as traders and investors widely anticipated that the U.S. Federal Reserve will raise interest rates at its next meeting in mid-December.

Higher interest rates raise the cost of holding non-yielding gold.

Toward the end of this month, the mint said it had sold out of all remaining 0.1-ounce, 0.25-ounce and 1-ounce American Eagle gold bullion coins dated 2015 and would not be making any more for the calendar year.

Demand for American Eagle silver coins has also been strong, with year-to-date sales already reaching an annual record at 44.67 million ounces, breaking the full-year record of 44 million ounces in 2014.

The Daily Debt Rattle

Submitted by Raúl Ilargi Meijer  –  The Automatic Earth

4 Telltale Signs The Credit Cycle Is Turning Now (Zero Hedge)
This Chart Should Put Stock Investors On High Alert (MarketWatch)
There’s a Big Drop in US Treasury Debt Supply Coming in 2016 (BBG)
Perverse Incentives : Stock Buybacks Blow Up Corporate America (Lebowitz)
IMF Approves Reserve-Currency Status for China’s Yuan (BBG)
Euro to Bear Brunt of Yuan’s Inclusion in Reserve-Currency Club (BBG)
No QE: Easy Money Is The Source Of China’s Problems, Not The Solution (Balding)
China Manufacturing At Three-Year Low (AFP)
The Debt Deadlines Faced By 5 Chinese Firms With Alarming Cash Problems (BBG)
Sydney Home Prices Drop Most in 5 Years (BBG)
Greek Debt Relief Talks To Focus On Net Present Value (Reuters)
The War on Terror is Creating More Terror (Ron Paul)
TPP Clauses That Let Australia Be Sued: Weapons Of Legal Destruction (Guardian)
Why the US Pays More Than Other Countries for Drugs (WSJ)
The Story Line Dissolves (Jim Kunstler)
The Slow Death Of Hope For America’s Loyal Friends In Iraq (FT)
Migrant Blockades Of Train Tracks In Northern Greece Hit Commerce (Kath.)