The Bank for International Settlements (BIS) Warns of Future Crises
by Andrew Gavin Marshall
Hat tip: Global Research, October 3, 2009
War is Peace, Freedom is Slavery, Ignorance is Strength, and Debt is Recovery
In light of the ever-present and unyieldingly persistent exclamations of ‘an end’ to the recession, a ‘solution’ to the crisis, and a ‘recovery’ of the economy; we must remember that we are being told this by the very same people and institutions which told us, in years past, that there was ‘nothing to worry about,’ that ‘the fundamentals are fine,’ and that there was ‘no danger’ of an economic crisis.
Why do we continue to believe the same people that have, in both statements and choices, been nothing but wrong? Who should we believe and turn to for more accurate information and analysis? Perhaps a useful source would be those at the epicenter of the crisis, in the heart of the shadowy world of central banking, at the global banking regulator, and the “most prestigious financial institution in the world,” which accurately predicted the crisis thus far: The Bank for International Settlements (BIS). This would be a good place to start.
The economic crisis is anything but over, the “solutions” have been akin to putting a band-aid on an amputated arm. The Bank for International Settlements (BIS), the central bank to the world’s central banks, has warned and continues to warn against such misplaced hopes.
What is the Bank for International Settlements (BIS)?
The BIS emerged from the Young Committee set up in 1929, which was created to handle the settlements of German reparations payments outlined in the Versailles Treaty of 1919. The Committee was headed by Owen D. Young, President and CEO of General Electric, co-author of the 1924 Dawes Plan, member of the Board of Trustees of the Rockefeller Foundation and was Deputy Chairman of the Federal Reserve Bank of New York. As the main American delegate to the conference on German reparations, he was also accompanied by J.P. Morgan, Jr. What emerged was the Young Plan for German reparations payments.
The Plan went into effect in 1930, following the stock market crash. Part of the Plan entailed the creation of an international settlement organization, which was formed in 1930, and known as the Bank for International Settlements (BIS). It was purportedly designed to facilitate and coordinate the reparations payments of Weimar Germany to the Allied powers. However, its secondary function, which is much more secretive, and much more important, was to act as “a coordinator of the operations of central banks around the world.” Described as “a bank for central banks,” the BIS “is a private institution with shareholders but it does operations for public agencies. Such operations are kept strictly confidential so that the public is usually unaware of most of the BIS operations.”
Americans cannot get any truth out of their government about anything, the economy included. Americans are being driven into the ground economically, with one million school children now homeless, while Federal Reserve chairman Ben Bernanke announces that the recession is over.
The spin that masquerades as news is becoming more delusional. Consumer spending is 70% of the US economy. It is the driving force, and it has been shut down. Except for the super rich, there has been no growth in consumer incomes in the 21st century. Statistician John Williams of shadowstats.com reports that real household income has never recovered its pre-2001 peak.
The US economy has been kept going by substituting growth in consumer debt for growth in consumer income. Federal Reserve chairman Alan Greenspan encouraged consumer debt with low interest rates. The low interest rates pushed up home prices, enabling Americans to refinance their homes and spend the equity. Credit cards were maxed out in expectations of rising real estate and equity values to pay the accumulated debt. The binge was halted when the real estate and equity bubbles burst.
As consumers no longer can expand their indebtedness and their incomes are not rising, there is no basis for a growing consumer economy. Indeed, statistics indicate that consumers are paying down debt in their efforts to survive financially. In an economy in which the consumer is the driving force, that is bad news.
I was shocked at how different the truth was from the way it was described …. The [Norad air defense] tapes told a radically different story from what had been told to us and the public for two years…. This is not spin. This is not true.
The following article is the text from John Pilger’s address to Socialism 2009 in San Francisco, California on 4 July.
Two years ago, at Socialism 2007 in Chicago, I spoke about an “invisible government,” a term used by Edward Bernays, one of the founders of modern propaganda. It was Bernays who, in the 1920s, invented “public relations” as a euphemism for propaganda. Deploying the ideas of his uncle, Sigmund Freud, Bernays campaigned on behalf of the tobacco industry for American women to take up smoking as an act of feminist liberation; he called cigarettes “torches of freedom.”
The invisible government that Bernays had in mind brought together the power of all media — PR, the press, broadcasting, advertising. It was the power of form: of branding and image-making over substance and truth — and I would like to talk today about this invisible government’s most recent achievement: the rise of Barack Obama and the silencing of the left.
First, I would like to go back some 40 years to a sultry day in Vietnam.
I was a young war correspondent who had just arrived in a village called Tuylon. My assignment was to write about a company of US Marines who had been sent to this village to win hearts and minds.
“My orders”, said the Marine sergeant, “are to sell the American Way of Liberty as stated in the Pacification Handbook. This is designed to win the hearts and minds of folks as stated on page 86.” Page 86 was headed WHAM: Winning Hearts and Minds. The marine unit was a Combined Action Company which, explained the sergeant, “means that we attack these folks on Mondays and win their hearts and minds on Tuesdays”. He was joking, though not quite.
The sergeant, who didn’t speak Vietnamese, had arrived in the village, stood up in a jeep and said through a bullhorn: “Come on out everybody, we got rice and candy and toothbrushes to give you!…”
All this was inspired by the principle — which is quite true in itself — that in the big lie there is always a certain force of credibility; because the broad masses of a nation are always more easily corrupted in the deeper strata of their emotional nature than consciously or voluntarily; and thus in the primitive simplicity of their minds they more readily fall victims to the big lie than the small lie, since they themselves often tell small lies in little matters but would be ashamed to resort to large-scale falsehoods. It would never come into their heads to fabricate colossal untruths, and they would not believe that others could have such impudence. Even though the facts which prove this to be so may be brought clearly to their minds, they will still doubt and continue to think that there may be some other explanation. For the grossly impudent lie always leaves traces behind it, even after it has been nailed down, a fact which is known to all expert liars in this world and to all who conspire together in the art of lying.
Similarly, Hitler’s propaganda minister, Joseph Goebbels, wrote:
That is of course rather painful for those involved. One should not as a rule reveal one’s secrets, since one does not know if and when one may need them again. The essential English leadership secret does not depend on particular intelligence. Rather, it depends on a remarkably stupid thick-headedness. The English follow the principle that when one lies, one should lie big, and stick to it. They keep up their lies, even at the risk of looking ridiculous.
Science has now helped to explain why the big lie is effective. Specifically, sociologists from four major research institutions investigated why so many Americans believed that Saddam Hussein was behind 9/11, years after it became obvious that Iraq had nothing to do with it.
According to analysts featured on page one of yesterday’s Columbus Dispatch PRINTING COMPANY, the Recession is OVER! I guess some people just can’t stop quoting those analysts that have given us news speak like, “MISSION ACCOMPLISHED!”, “Iraq has weapons of mass destruction!”, “Osama bin Laden did it!”, “We don’t torture!”, and finally… “we only used ‘enhanced interrogation for terrorists!”
Of course, “those terrorists” are innocent! Ever heard of the Constitution? Due process? Innocent until PROVEN guilty? Oh, that’s right! We’re torturing INNOCENT men, women and children!
Statement by Congressman Ron Paul before the US House of Representatives, June 4, 2009.
Madam Speaker, before voting on the “cap-and-trade” legislation, my colleagues should consider the views expressed in the following petition that has been signed by 31,478 American scientists:
“We urge the United States government to reject the global warming agreement that was written in Kyoto, Japan in December, 1997, and any other similar proposals. The proposed limits on greenhouse gases would harm the environment, hinder the advance of science and technology, and damage the health and welfare of mankind.
“There is no convincing scientific evidence that human release of carbon dioxide, methane, or other greenhouse gases is causing or will, in the foreseeable future, cause catastrophic heating of the Earth’s atmosphere and disruption of the Earth’s climate. Moreover, there is substantial scientific evidence that increases in atmospheric carbon dioxide produce many beneficial effects upon the natural plant and animal environments of the Earth.
“Circulated through the mail by a distinguished group of American physical scientists and supported by a definitive review of the peer-reviewed scientific literature, this may be the strongest and most widely supported statement on this subject that has been made by the scientific community. A state-by-state listing of the signers, which include 9,029 men and women with PhD degrees, a listing of their academic specialties, and a peer-reviewed summary of the science on this subject are available at www.petitionproject.org. The peer-reviewed summary, “Environmental Effects of Increased Atmospheric Carbon Dioxide” by A. B. Robinson, N. E. Robinson, and W. Soon includes 132 references to the scientific literature and was circulated with the petition.
“Get Out of Iraq. Get Out Afghanistan”
By Dennis Kucinich
— WASHINGTON – May 14 – Speaking on a Supplemental Appropriations bill that would continue to fund the wars in Iraq and Afghanistan, Congressman Dennis Kucinich (D-OH) today made the following statement:
“America went to war against Iraq based on a lie. We were told back in 2002 that Iraq had weapons of mass destruction. The previous administration even pursued torture to try to extract false confessions in order to justify the war. It is time to tell the truth. The truth is we should not have prosecuted a war against the Iraqi people. The truth is the Democratic Senate could have stopped the Iraq war in 2002. The truth is we Democrats were given control of Congress in 2006 to end the war. The truth is this bill continues a disastrous war, which has cost the lives of thousands of our soldiers. The truth is the occupation has fueled the insurgency. The truth is the Iraq war will cost the American and the Iraqi people trillions of dollars and as many as a million innocent Iraqis have lost their lives as a result of this war.
“Don’t tell the American people that you are ending the war by continuing to fund the war. Don’t tell the American people that the war will end when their plans leave 50, 000 troops in Iraq. Don’t tell the American people that the way out of Afghanistan is to escalate our presence.
“Get out of Iraq. Get out Afghanistan. Come home America.”
HYPOCRISY IN MEDIA: SELECTIVE COVERAGE OF JOURNALISTS IN JAIL
Glenn Greenwald Roxana Saberi’s plight and American media propaganda
An Iranian appeals court this morning announced that it was reducing the sentence and ordering the immediate release of Iranian-American journalist Roxana Saberi, who was convicted by an Iranian court last month of spying for the U.S. and sentenced to eight years in prison. Saberi’s imprisonment in January became a cause célèbre among American journalists, who — along with the U.S. Government — rallied to demand her release. Within minutes of the announcement, several of them — including ABC News’ Jake Tapper, Time ’s Karen Tumulty, The Atlantic ’s Marc Ambinder — posted celebratory notices of Saberi’s release.
Saberi’s release is good news, as her conviction occurred as part of extremely dubious charges and unreliable judicial procedures in Iran. And, as Ambinder suggested, her release most likely is a positive by-product of the commendable ( though far from perfect) change in tone towards Iran specifically and the Muslim world generally from the Obama administration. But imprisoning journalists — without charges or trials of any kind — was and continues to be a staple of America’s “war on terror,” and that has provoked virtually no objections from America’s journalists who, notably, instead seized on Saberi’s plight in Iran to demonstrate their claimed commitment to defending persecuted journalists.
Beginning in 2001, the U.S. held Al Jazeera cameraman Sami al-Haj for six years in Guantanamo with no trial of any kind, and spent most of that time interrogating him not about Terrorism, but about Al Jazeera. For virtually the entire time, the due-process-less, six-year-long imprisonment of this journalist by the U.S. produced almost no coverage — let alone any outcry — from America’s establishment media, other than some columns by Nicholas Kristof (though, for years, al-Haj’s imprisonment was a major media story in the Muslim world).
As Kristof noted when al-Haj was finally released in 2007: “there was never any real evidence that Sami was anything but a journalist”; “the interrogators quickly gave up on asking him substantive questions” and “instead, they asked him to spy on Al-Jazeera if he was released;” and “American officials, by imprisoning an Al-Jazeera journalist without charges or meaningful evidence, have done far more to damage American interests in the Muslim world than anything Sami could ever have do”
As I reported from Doha, the capital of Qatar and Al Jazeera, I met Sami and was very impressed by his ongoing commitment to human rights for all journalists
Today, the most abysmal bill in the history of America was passed by the Senate. The bill was intended to save us all from impending doom according to our President. The bill is a quagmire of legalese that ties up nearly a trillion dollars for Congressional pet projects.
Obama campaigned heavily to pass the bill. The primary premise of his argument was that if we didn’t do something, the economy would get much worse, but in response to the bill, US stock markets didn’t just retreat, they whimpered in dismay. This bill should have been much smaller, faster moving and better targeted at its objective — stimulus.
The surge in the national debt and the potential collapse of the dollar in response to such a bill are evident, but the saddest part is that our faith in President Obama as a nation is broken. He could have helped America — instead, he passed a partisan bill that will only inject 26-29 billion dollars this year (approximately 3%), at the time we need it most.