Q: The Bank for International Settlement, BIS, sounds like it is at the top of the financial order. Most people have never heard of it. Where can we get more information?
A: Yes, it has been very low key. Deliberately so. But there is a, firsts and only, investigative book on the BIS published just last year. You can get more info here: http://www.amazon.com/Tower-Basel-Shadowy-History-Secret/dp/1610393813. The official website here: https://www.bis.org/.
Q: Could you give us a brief overview?
A: They are located in Basel and have diplomatic status in Switzerland. They are privately owned and controlled and have never been subject to an outside audit. They are at the top of the international banking food chain. They were formed after WWI to handle German war reparation payments. During the height of the German occupation in WWII over two thirds of the directors were appointed by Germany. This played a role in how cash flows in Germany and the occupied countries were directed during and after the war. The bank’s private status, diplomatic immunity and officially sanctioned secrecy have exempted it from public accountability. Germany did not lack capital to rebuild after the war. They dominate the European economy today. Unlike defeated Serbia. Their pro gold position has not been a secret. They promoted gold’s bank reserve status as equivalent to short term government debt. No haircut in the banks suggested capital adequacy ratios for gold. This puts gold on a par with currency in the vault. The BIS suggested standards have no compulsive legal force but are universally adopted as what public policy should strive to. The only collateral that the BIS accepts when a member central bank seeks a loan is gold.
Q: What relevance does this have to the price of gold going forward?
A: I think the most important thing to understand is that BIS policy is what the international banking establishment wants it to be. The corollary to that is: the future will most likely play out as BSI policy and practice suggests that it should. Discount what politicians say and pay attention to what the bankers do. The real masters of the universe see gold as money. When needed, gold will be introduced further down the food chain to restore confidence and keep the existing real masters of the universe in charge. Then the inflation process can be started all over again after a reset at a higher price for gold. How much higher depends on how much of the existing debt will be written off.
Q: Is there a conspiracy here?
A: No. It is part of economic law and law of human action. People will behave in a manner consistent with the advancement of their self-interest as they understand it.
Market Commentary (above) by Arthur Fixed
[box type=”info” style=”rounded” border=”full”]Commentary from Arthur Fixed the author of the Art of Speculation during Civil War – Sun Tzu Meets Jesse Livermore is a private manuscript copyrighted 2012 by Art Fixed.[/box]
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