BIS: Central Banks Cannot Continue to Prevent Global Financial Collapse
June 26, 2013
The Bank for International Settlements (BIS) has warned all central banks not to continue to participate in the global recovery after Ben Bernanke, chairman of the Federal Reserve, announced that his technocratic bank will slow down their acquisition of US bonds and mortgage-backed securities.
In the BIS Annual Report for 2012 – 2013, it is claimed that “since 2007, actions by central banks have prevented financial collapse.”
With national economies imploding across the globe, the focus must be “the economic and financial reforms needed to return economies to the real growth paths authorities and the public both want and expect.”
Fiat currency is considered “borrowed time” and that more bond purchases made by central banks will impede the world’s economies to recover.
The BIS asserts that policymakers must consider the impact of national monetary policy which is passed will affect the global markets. In response, central banks must coordinate their efforts to relieve the side-effects of each nation against the stabilization of global markets.
Bernanke said that the Federal Reserve will begin the slowing down of the $85 billion buy-back program with an end in mid 2014.
The BIS report states: “How can central banks encourage those responsible for structural adjustment to implement those reforms? How can they avoid making the economy too dependent on monetary stimulus? When is the right time for them to pull back … [and] how can they avoid sparking a sharp rise in bond yields? It is time for monetary policy to begin answering these questions.”
The document said that the central bankers have done all they can to help the global economy and now it is “past the height of the crisis” and yet the “central banks cannot do more without compounding the risks they have already created.”
Essentially, the BIS warns that the “central banks cannot repair the balance sheets of households and financial institutions.”
Stephen Cecchatti, head of the monetary and economic department at the BIS said : “What central bank accommodation has done during the recovery is to borrow time for others to act, allowing them to repair balance sheets, to consolidate fiscal balances, and to enact reforms to restore productivity growth.”
Cecchatti continued on: “The time needs to be used wisely. But so far, continued low interest rates and unconventional monetary policies have made it easy for the private sector to postpone deleveraging, easy for the government to finance deficits, and easy for the authorities to delay needed reforms in the real economy and in the financial system.”
Indeed Cecchatti recommends that: “It is others that need to act, speeding up the hard but essential reform and repair work to unlock productivity and employment growth. Each country needs to tailor the reform agenda to maximize its chances of success without endangering the ongoing economic recovery.”
Earlier this year, the BIS and the Basel Committee on Banking Supervisors (BCBS) applied the underlying pressure on US banks to liquidate to appease global markets. The American taxpayer is picking up the tab for this turn of events. BIS is giving these banks until 2019 to comply with their new rules. Capital to prop up the banks will be needed while they liquidate assets such as bonds, mortgages, loans and stock shares.
Consequences of the liquidation have been evidenced in governmental austerity and movement toward sovereign debt by the technocrats. Any asset assessed by Basel can and is being used as collateral of the banksters in an anything goes temperament while the squandering of wealth continues.
BIS has used the scheme of forcing capital from the banks to control the measures taken globally. International banking constraints mandated in these new rules are putting more control into the hands of “shadow banks” where supervision is unheard of.
Michel Barnier, commissioner of BIS, stated that the Basel Committee has “revised liquidity coverage ratio and the gradual approach for its phasing-in by clearly defined dates. This is significant progress which addresses issues already raised by the European Commission. We now need to make full use of the observation period, and learn from the reports that the European Banking Authority will prepare on the results of the observation period, before formally implementing in 2015 the liquidity coverage ratio under EU law in line with the Basel standards.”
Liquidity is seen by the technocrats as a necessity for “the stability of banks as well as for their role in supporting wider economic recovery.”
At a time when the introduction of a global currency to replace all fiat across the globe is at hand, it makes perfect sense that the technocrats are positioning themselves to control the central banks as offshoot branches of their operation. At the head of this monster, the BIS sets the tone and directs the banksters with limitations and orders.