BIS: The most powerful bank in the world announces the crash

discordantone
reply to post by Biigs

 

Not true. Some of us have substantial gold and (primarily)silver bullion caches. Granted, I doubt 100oz bars and up will be a regular currency, but 1oz coins and home-smelted silver coins will be a good currency when the time comes.

I may be labelled paranoid, cynical and untrusting for shunning 'the system' for all but pay-cheque deposits and bill payments, BUT, if the time comes to sell my cache for paper money because the system has been re-worked and we have stable paper money again, there will be zero taxation on the profits.

Actually, pre 65 us coins will likely be the traded commodity. They are currently trading at their full weight silver prices even though they are only 90% silver for that very reason...

Jaden

reply to post by coldkidc


A little FYI for all the people that don't understand the world financial situation, or banks.

1) There is no one world currency, just the illusion there is all banks are controlled by one group and one fiat system.

2) There is no "Most powerful bank in the world" they are all beholding to one group

3) Money has been created out of nothing for many many years. Google is your friend look up "Fiat currency"

4) The market will go up and down whenever TPTB choose it too, because they invented the game and all of the world is playing by their rules.

5) It's just money in the end, but the reason people are so scared to lose it is because they foolishly waste most of their waking moments chasing it, then spending foolishly.

6) People have lived and survived without money before, so stop living in fear and wasting the majority of your lives chasing money.

7) Start focusing on what really matters in life like spending time and caring about the people that are close to you. Life moves very very fast and one day the only thing most people will have to remember is how much money and time they lost chasing it.

Peace out,

RT

reply to post by Masterjaden


Thanks Jaden - Pre 1965 quarters, dimes, halves & dollars (aka "junk silver") are not a bad place to park your money...unfortunately the spot on them is a bit high & it's not as easy to find them at the bank as it used to be...

It's interesting to note that the other denominations are also approaching a point where the mint is going to be forced to either eliminate them or revise the metal content.

Pre 1982 pennies are worth over twice their face value just in melt & all of the nickels (even the ones they mint today) are close to their face value in metal content (they were actually worth more than face earlier this year...but you can't melt them down so theirs no way to get the profit out of them)

That's what happens when you inflate the crap out of your currency

coldkidc

The Bank for International Settlements (BIS) is the current situation on the financial markets as worse than before the Lehman bankruptcy. The warning of the BIS could be the reason why the U.S. Federal Reserve decided to continue indefinitely to print money: Central banks have lost control of the debt-tide and give up.

BIS: The most powerful bank in the world announces the crash

Article translated using Google translator.



So...BIS, one of the largest financial institutions in the world, has announced impending doom?
Surely, it can't be! Didn't the stock market just break an all time record?

Thank you for posting and it is very newsworthy.

I find it interesting that this announcement came so quickly after the G20 meeting.

And interesting is that it almost reads as a threat. Remember that Syria is not a member of BIS and that there is a trail of evidence that this newest humaniarian crisis is but a step in a plan for regime change in specific non-BIS countries.

These bubbles are not about debt they are about stock price. Hence the concern about the (illusory) NYSE being so high. The NY Stock Exchange value (sic) is based on perceived value not actual value and has very little to do with debt of any kind. People do buy stocks with credit but mostly indirectly (simple example would be to take equity out of your house and buy stock in the hopes of increaing the value of that equity).

The problem with that simple senerio is that in many (most for small private investors - without teams of analysts and high speed automated trading systems) that that initial equity disappears in a market 'correction' and hence the equity taken out of the home is gone or severly lessened. The big guys are out before you even see it coming (and I mean their own personal stake - not their 'clients' stakes).

HOW DO YOU THINK they make money and suck up the little guys (an a little guy now is multi-million dollor businesses let alone you and me personally).

This is dire, I agree --- but I've no idea why or how it will play out. This is such a make believe world played by little boys with our lives. I've met, worked and gotten to know some of these 'players', little guys, way way down the ladder - and they have no sense whatsoever of how this effects real people. They really believe they are masters of the universe and that these machinations are reality. Like video game addicts - the fantasy becomes more real then life.

We should be afraid. But not of debt, but of these people. They are insane but any standard.

BIS archives

The BIS archives are open to the public. Under the BIS open archive rules, all records relating to the Bank's business and operational activities which are over 30 years old are available for consultation, with the exception of a limited number of records.

I suggest people comb through the archives if at all possible to see what kind of dots can be connected through all the years.

Now that a select few of us are privy to the information, how can we prepare for tis coming disaster next year? Lets just admit it, even if this announcement went on all MSM tomorrow for a brief segment, it would be dismissed by a bulk of the population and they would forget about it after their prime time dramas, sit-coms, talk shows, and reality tv watching has concluded. So I say, how can some of us prepare who actually do pay attention to how the world works for this impending disaster??

This bank warning is nothing new. The concept behind fractional reserve banking is a good one as it makes money accessible, but the large banks over leveraged themselves way too much. Before the debacle in 2008 they were leveraged between 25:1 and 35:1. If anyone has paid any attention to the news, they're now leveraged more in the range of 55:1 to 75:1. At leverage rates that high, the slightest hiccup will cause the whole thing to collapse. BIS is saying nothing new (if they in fact said it at all... the sources seem sketchy), our financial situation currently is worse than it was in February 2008 though.

reply to post by Aazadan


I am just saying, if this means next year will be another +/- '08 Lehman's , than all it means is that money or assets is being transferred from one lot of people's to another. If you ever read any of Robert Kiyosaki's books, he explains it that way. If somebody lost a house, chances are someone else gained it. If some retired union workers pension just got chopped up, the money and future income is going to another individual or group.

When the stock market crashes, houses are foreclosed on, and IRA's, pensions, or insurance account are dipped into or eliminated altogether, the money that was vested there does not simply vanish into thin air. It "changed hands" so to speak, and the approximate value lost transfers into a gain somewhere else.

I believe those of us that actually give a darn about HOW the system works and not just what pleases the eye any given day should simply get with it and find out how to be on the side of the gain . It is irrelevant how many are warned or how far the message will travel, people will ignore or forget and then get bent over at crash time. Let us try not to be one of those ignorant masses, and research what it takes to be one of the few who survive it financially on the + side of the exchange.

Anyone who decides to empower themselves can then spread that plan to anyone who wants to hear it, and a new experiment begins. The money men are very efficient with their planned heists (market manipulation). It is high time we see the same patterns they do and adapt.

When in Rome and all that ....

DYepes
reply to post by Aazadan

 

I am just saying, if this means next year will be another +/- '08 Lehman's , than all it means is that money or assets is being transferred from one lot of people's to another. If you ever read any of Robert Kiyosaki's books, he explains it that way. If somebody lost a house, chances are someone else gained it. If some retired union workers pension just got chopped up, the money and future income is going to another individual or group.

When the stock market crashes, houses are foreclosed on, and IRA's, pensions, or insurance account are dipped into or eliminated altogether, the money that was vested there does not simply vanish into thin air. It "changed hands" so to speak, and the approximate value lost transfers into a gain somewhere else.

I believe those of us that actually give a darn about HOW the system works and not just what pleases the eye any given day should simply get with it and find out how to be on the side of the gain . It is irrelevant how many are warned or how far the message will travel, people will ignore or forget and then get bent over at crash time. Let us try not to be one of those ignorant masses, and research what it takes to be one of the few who survive it financially on the + side of the exchange.

Anyone who decides to empower themselves can then spread that plan to anyone who wants to hear it, and a new experiment begins. The money men are very efficient with their planned heists (market manipulation). It is high time we see the same patterns they do and adapt.

When in Rome and all that ....

This isn't always true. The money supply can contract and has many times throughout history, the banks do it in order to drive down prices and allow themselves to buy assets for considerably less money. It's going on now actually, at a rate similar to the Great Depression and has been since 2010. When these happen debt becomes tougher to manage, and assets purchases with that debt goto the bank.

The problem is, it's virtually impossible to break into that system because it requires the power of a central bank to implement. One can occasionally make investments that rise due to these actions, and if you're good at it you can make a decent amount of money doing so but the markets are still practically a casino since the markets are rigged. And I still maintain that investing in commodities as a hedge against collapse is worthless. Unless you're physically storing the goods they'll be confiscated in a SHTF scenario. If you are physically storing the goods, well... raw goods don't have much value. Copper is valuable when cast into pipes, made into coins, and so on. The same is true for pretty much all goods. They require functioning infrastructure in order to be made into usable goods.

reply to post by coldkidc


So let me get this strait here...

The BIS is the central bank of the central banks in a way...

Bernanke get's cold feet with raising interest rates because it was just too bad of a deal...we are talking the greatest depression EVER!

So his boss, the BIS, says "na, na dude, raise the fracken rates like we planned" That bypasses the US, but leaves us in a BIG pickle....

It's like this guy that jumped out a ten story window, on each floor people heard him saying, "so far so good". Looks like we are about to hear the big sloppy crunch, flop, gush as we his the ground.



DAMN! Now that is what I call bad news friends....BEANS and RICE!

The Rat.

Well I know now why my intuition recently has been telling me to begin growing my own food. Just cleared out a nice piece of green space at my parents backyard (nice and roomy). I will begin beans, peppers, tomatoes, spinach, various herbs and spices, as well as sunflowers.

the beans and sunflower seeds can be stored dry for a good duration of time. The spices can simply exist as the plants they are until I need me something for cooking. I am going to try and grow the spinach in cycles, like I will plant three plants or so, and then two weeks later three more, and a month after that three more. Hopefully I can time a constant supply of it.

My pops already has pineapples, bananas, and mango growing in the back as well as two grapefruit trees.

As far as metals go, I am a big hoarder of scrap copper. In the event there is a SHTF type of financial meltdown, it wont matter much if it is scrap form because the people who will demand likely will be the ones with the skills to forge it into useable product. I am working on my own backyard refinery anyways (yea, they really do have a big yard in the middle of the city) where I can melt my scrap aluminum and copper into mini ingots.

If this country can last just till the next tax season I should be well off enough to be self sustaining from my efforts for some time. I am trying to convince them to get more chickens again, have not had any since I was but a wee lad. Free eggs is always nice to have. You really learn to appreciate free eggs when you cook them many times a week for the kids. WIC can suck it.

If I only knew how to make cheese, I would definitely go buy a goat.

reply to post by Aazadan


Having read your thoughts with interest Aazadan, I was puzzled by the following :-

"The concept behind fractional reserve banking is a good one as it makes money accessible,..."

If there is any real difference between Fractional Reserve banking, and a Ponzi Scheme I'd be very grateful to have it pointed out.

Unfortunately the money which "becomes accessible" emerges from thin air.

Neither system has enough money in it to meet its obligations to those who participate in the system, and therefore both share the same eventual fate, albeit to differing extents.

If the perpetrator of the Ponzi Scheme had a machine for making dollar bills, the analogy would be even closer, and the Ponziist could last as long as the banks are doing.

Less than 10% of all the dollars that exist are on real paper -- the rest are simply figures on a computer screen.
When the lights go out, and the screens fade to black -- it's going to get very dark indeed.

mistersmith.

I wise man once said, leaving your money in a bank makes you a fool.

Realtruth
reply to post by coldkidc

 

A little FYI for all the people that don't understand the world financial situation, or banks.

1) There is no one world currency, just the illusion there is all banks are controlled by one group and one fiat system.

2) There is no "Most powerful bank in the world" they are all beholding to one group

3) Money has been created out of nothing for many many years. Google is your friend look up "Fiat currency"

4) The market will go up and down whenever TPTB choose it too, because they invented the game and all of the world is playing by their rules.

5) It's just money in the end, but the reason people are so scared to lose it is because they foolishly waste most of their waking moments chasing it, then spending foolishly.

6) People have lived and survived without money before, so stop living in fear and wasting the majority of your lives chasing money.

7) Start focusing on what really matters in life like spending time and caring about the people that are close to you. Life moves very very fast and one day the only thing most people will have to remember is how much money and time they lost chasing it.

Peace out,

RT

You forgot 8.

If it bleeds, we can kill it.

mistersmith
If there is any real difference between Fractional Reserve banking, and a Ponzi Scheme I'd be very grateful to have it pointed out.

When mismanaged they're pretty much the same thing. I'm on the side that our current system is a Ponzi Scheme but that doesn't mean the concept itself is flawed. It wasn't always this way though, and the corruption of our current system doesn't mean that fractional reserve banking is entirely bad. When the leverage rate is in the range of 5:1 or 10:1 money becomes accessible and it allows for the creation of loans. Loans have many beneficial traits (along with some bad ones). Notably they allow for the creation and sale of bonds to fund municipal projects, they allow people to purchase homes, and they allow people to purchase needed vehicles. There's other uses too such as the commercial paper market, without which our entire agricultural system would grind to a halt, along with many other businesses, and college loans. None of this is possible without a fractional reserve system (which if you aren't aware has been in use since the 1600's). The problem we have right now is that our banks (in the US, each country has different official rates as well as rates the banks actually follow) are leveraged in the range of 35:1 with occasional reports of some banks like Chase and BofA being leveraged as much as 75:1. There's regulations against being overleveraged but the fines for violating it come to millions while the profits for doing so total in the billions.

Fractional reserve systems in theory pay the customer because the bank pays interest on that money of yours it's holding. In past decades the interest rate has been quite generous, infact free market principals say that under competition banks will push up the interest rate for the consumer right up until the point that they're no longer making anything. In 1980 for example you could get a checking account with an interest rate of 20% by shopping around a little bit (they averaged between 16 and 20). By 1990 they had been cut in half (meaning your checking account only accrued interest at a rate equal to what a good credit card charges you these days), and as we all know they're under 1% for most accounts today. As a result of this, which is only explainable as bank collusion the competition aspect no longer matters and we're not getting what we should from the system.

Furthermore, since dollars are created at interest the problem gets worse. Lets say someone wants to buy a $100,000 home and puts 15% down. What ends up happening is the person gives the bank $15,000, the bank then takes that money and through investments and taking advantage of the money multiplier that is leverage creates $525,000 in assets. It gives the home buyer $85,000 of that to purchase a home (which they'll then charge about $135,000 for in repayment). The remaining $440,000 is loaned out, again at interest. When all is said and done, from that $15,000 that wasn't even the banks to start with, the bank ends up as 1,000,000 in actual assets (this process takes years). Now the bank has a million dollars it can leverage again if it chooses to.

So the question is... what's good about that? Well, that remaining money was invested in businesses to grow the economy. That means more jobs, higher wages (in theory), and so on. It's a good process even if it does make one party obscenely rich for doing nothing other than having a charter that allows them to create funds. Where the real problem occurs is with debt based currency. The bank creates essentially those 1 million dollars but it was created at interest, lets say 1%. Now 1,010,000 must be paid back when only 1,000,000 was created. This means that someone is going to have to give the bank atleast $10,000 in assets they've already purchased. Usually this happens in the form of things like home foreclosures. The bank got the downpayment on the home, and created money from nothing. They're not actually out anything when the home buyer fails to pay their mortgage. Infact, the bank is now in a better position because they got the initial funds, whatever was put into paying off the mortgage, and a piece of property on top of it. All for 0 risk.

Under this concept, it's actually better for a bank to make risky loans as the collateral they grab is more profitable for them in the long run (particularly when they inflate the currency). It's just as true for banks as it is for the government with student loans (which is legally predatory lending... it's just exempt from such status).

So anyways to sum things up, it's not a fractional reserve that's bad it's a system where a private corporations owns and directly profits from the creation of the money supply. The founders had it right when they wanted it to be controlled by congress. When congress has created debt free money such as colonial script or greenbacks, we still had a fractional reserve system and things ran smoothly.

reply to post by Aazadan


Thank you for an extremely comprehensive response, I'm pleasantly surprised that we share quite so much common ground regarding our opinions of the current situation, particularly with regard to the somewhat fundamentalist nature of my feelings about money.

Whatever money I have made in my working life I've made by taking raw materials and making them into something useful and hopefully appropriate to its surroundings. That seems to me to be the honest way to prosper, whereas financial speculation and usury are neither honest nor honourable in my eyes. This is, I agree, a simple and limited view, and quite appropriate to my understanding of the situation. Personally, I'm happy that I can still hear the still, small voice of my conscience, since I've not had to ignore its guidance in the past.

I wonder if I might, without causing offence, draw a parallel between your feeling that Fractional Reserve banking could be a good system if it were only administered properly, and my feeling that Communism (as practised by the disciples of Christ, rather than later models) would, if only it were properly organised, be better than Capitalism ?

Although you may easily feel that no such parallel exists, would you also deny that Fractional Reserve banking is one of the major weapons deployed by those who would concentrate wealth amongst the few, and impoverish the rest of us ?

mistersmith.

SubTruth
reply to post by coldkidc

 

The time is going to come when the piper must be paid. How many more years or months will that take?



The lowest wage earners by that I mean anyone under 12 dollars an hour are not going to be able to feed and house themselves in the very near future. This is not a prediction it is a FACT.



And no amount of bail out money can stop this from happening. And don't think you are safe because you make good money because what happens when 70% of the people can no longer afford to live? It will be epic and it will shake the very foundation of this once great country.

You are absolutely right, a lot of people are not paying attention because they think they have job security and think that they are immune to the bad economy due to their social status - this isn't true.

The bad economy is already eating up people I know who graduated from private University with rich parents, who can't afford to pay for them, either - so we are talking about rich people who went to a private University still struggling. The only discriminating factor there is age - they are under 30.

Above 30? Well... I think that things might start to fall apart. Also, if you happen to lose your job or your house (due to paperwork issues, of course) you will be thrown out into pretty hostile territory when it comes to trying to regain your old life back. Fact.

And you know? The piper always has to be paid, never not. The question is how much you owe.

reply to post by mistersmith


You know what, Mistersmith... I think that either mining raw materials or producing things from them are major cornerstones in any economy. After that would be skilled labor, like the skill of being able to create something with utility precisely - or skilled artisans, like the skill of being able to write a book or engrave more and more complex ideas -

I think at the moment, our money represents how much our work is worth. Our work is worth a set amount - adding extra dollars into the pool would cause inflation - are we really printing endlessly? Since when?

reply to post by darkbake


Hello darkbake,
Referring to your paragraph :-
"I think at the moment, our money represents how much our work is worth. Our work is worth a set amount - adding extra dollars into the pool would cause inflation - are we really printing endlessly? Since when ?"

I think since 1973, when the US abandoned the Gold Standard, would be my response to your question.

I've heard the arguments which attempt to justify bankers' obscene remuneration, but since I view their work as ultimately anti-social, I think it is one of many examples that contradict your initial statement. I wish it were true, it would make for a better world , but --
Surely teachers and nurses should be more highly valued than those who manipulate the riches of others, and skim a little off the top for themselves ?
Shouldn't society reward those who contribute, more than those who seek to enrich themselves at others' expense ? I can't believe we are completely at odds here, more likely our viewpoints are very different.

On a deeper level, we will never have a productive approach to sustainable living until we factor in the true and complete cost of producing manufactured articles. The damage done is part of the cost.

mistersmith.

reply to post by mistersmith


That makes sense, sorry - and yes, I think that people who work to benefit society should be worth more than those who do not. I especially admire people who do manual labor - I at the very least think that someone who has a job should be able to support a family comfortably.

My point was that if we are producing, as a nation, a certain amount of labor and that does not change but the amount of money in circulation increases, it would cause inflation. Although I think that it is normal to print money to replace currency that is wearing out, also, a bit of inflation is generally good.

So when you are talking about manufacturing, what additional costs do you mean?

I guess this could be one of the negative effects of large corporations - the smith or whomever, generates an object worth so much - but then that object is sold and the smith is given only a tiny percentage. The rest probably goes to bureaucratic costs.

I am an advocate of small businesses replacing large corporations where possible. Many people earning an hourly wage probably have the skills needed to have a business of their own - for example, a Petco animal groomer could open up their own animal grooming business.

reply to post by darkbake



Fractional Reserve banking is a cause of the inflation you are wary of.
Let's say I'm a bank, and I lend you a million dollars.
That goes on my books as a new asset.
I can lend out 90% of any new asset, so I lend a third person $900,000.
Oh look ! That's a new asset, I can lend person four 90% of it -- $810,000 ....
The more debt I create, the larger my assets grow.
But there's no real money. Just people farming their own kind.

As an example of the additional costs of manufacture, take a leather coat, made in India.
The hide will have been treated with chemicals which would then very likely be discharged into a communal drain, ending up in the river where people wash themselves and their clothes. The chemicals are known carcinogens, and the harm to human health is part of the cost of making the coat. The person who knowingly buys the coat embarks upon a conversation with their conscience which may be prolonged or brief -- but inevitably it will help to form their character, and that too, is part of the cost of making the coat.

Creation which depends on needless destruction is now the norm.

I find it helps me to maintain an essential reverence if I regard the whole of creation as sacred, as did the Druid, or the Apache. (Even if I am an unrepentant polluting motorist and hypocritical omnivore.)
This god up in the sky that the Romans brought with them has changed everything.

mistersmith.