How the Banksters Play "Good Cop, Bad Cop"

09/15/20156 Comments

committee-to-save-the-worldby James Corbett
September 15, 2015

As all eyes turn to this week's Federal Open Market Committee meeting for an answer to the will they / won't they Fed rate hike question, we face another stark reminder of how the global economy is increasingly at the whim of the central bankers with their hands on the money spigot. The would-be "Masters of the (Phony, Manipulated) Universe" known as the Federal Reserve Board have the power to send the global economy into a tailspin by hiking rates, causing a giant unwind of the almost-never-mentioned dollar carry trade in emerging economies. Or they can waffle again, delay the decision, and keep markets in the precarious limbo they've been since the end of the QE3 party and the removal of the punch bowl. They could even, as some suggest, concede their utter failure to even understand let alone implement an easing-based "recovery" and try again with QE4.

But wait, there's a bold new truth-teller on the horizon. One that's willing to talk about the insanity of this central bank-manipulated economy: "Financial markets have worryingly come to depend on central banks’ every word and deed," says the oracle. Is it a bird? Is it a plane? No, it's Claudio Borio, chief economist of the Bank for International Settlements!

And the plainspoken, obvious truths that Borio voices about the global economy's precarious position don't stop there. We live, he noted in a press conference late last week, in "a world in which debt levels are too high, productivity growth too weak and financial risks too threatening." The market mayhem of August ("remarkable" gyrations of oil price, "sharp price moves with little trading" in FX markets, "dislocations" of equities markets) were not "isolated tremors, but the release of pressure that has gradually accumulated over the years along major fault lines."

You would be forgiven for thinking that such a screed came from some alternative market commentator, someone far outside the mainstream and likely to be branded as a fearmongering conspiraloon by the economic cheerleaders at CNBC. But the fact that it came from the Bank for International Settlements should actually not be surprising. As Ambrose Evans-Pritchard noted in his article on the BIS' latest report: "The venerable BIS—the so-called 'bank of central bankers'—was the only global body to warn repeatedly and loudly before the Lehman crisis that the system was becoming dangerously unstable."

BISThe crash course for those who don't know about the BIS: It was founded in 1930 as an outgrowth of Rockefeller Trustee Owen D. Young's so-called "Young Plan" to chain German payments for the unpayable WWI reparations scam to a consortium of financiers led by J.P. Morgan. It is located in Basel, Switzerland, but is above Swiss law by terms of a treaty that makes the bank "inviolable" and free from search, seizure or interference in any way by Swiss authorities. And it was identified as the apex of a global system of oligarchical control in a shockingly frank passage by Georgetown historian (and Clinton mentor) Carroll Quigley in Tragedy and Hope:

"The Power of financial capitalism had a far reaching plan, nothing less than to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole. This system was to be controlled in a feudalistic fashion by the central banks of the world acting in concert, by secret agreements arrived at in frequent meetings and conferences. The apex of the system was to be the Bank for International Settlements in Basel, Switzerland, a private bank owned and controlled by the world's central banks, which were themselves private corporations."

It may at first be confusing as to why the BIS is now seemingly spreading the word about the coming collapse that those in the mainstream have been pooh-poohing for so long. But in fact, this should not be confusing at all. The BIS is playing the "good cop" in this global charade, the champion of economic wisdom and monetary caution in a land of central bankers who are out of control. The BIS is currently building up its credibility, acting as the sage voice of wisdom that you only find out afterward you should have been listening to all along. And why? So that it can spend that credibility in the crisis. Only by being the "only global body to warn repeatedly and loudly" of the coming collapse can the BIS expect people to listen to its "solutions" for this crisis.

The phony nature of this charade is not difficult to see. The BIS is comprised of the heads of the central banks of most of the nations of the world. It is, in a key sense, those very central bankers. The BIS actually wrote the paper exposing the dollar carry trade that it is now warning may unwind catastrophically when monetary policy stops working and the real credit crunch begins. Do you think the Fed really "doesn't understand" what quantitative easing has done or how it works, as Bill Dudley would have you believe, or does the Fed understand perfectly well given that the plan is in fact to pop the bubble and create the chaos necessary for their economic "New World Order"?

Order_ChaosNote how, when the Cyprus crisis unfolded before our eyes and we witnessed the birth of the banking bail-in, it was revealed that the BIS had been there in the background all along, quietly creating the regulatory framework for just such an event through their even more shadowy "Financial Stability Board" spinoff.

The BIS knows what's coming as a result of these central banking manipulations. Yes, the BIS knows what results when you combine the biggest bond bubble in history with an eight-year bull run in stocks that defies all economic reality. It isn't pretty. It isn't meant to be. Order from chaos never is.

But rest assured, the BIS will be there in the midst of the crisis, after having seen it all coming and trying to warn you about it, but you just didn't listen. The good cop who is going to be there for you and restore order to global markets. The Good Samaritan who provides the petrified masses with the New World Order they're clamoring for. Just as those who profit from false flag events always do.

But don't believe the BIS for one second. There's no good cops or bad cops, only banksters—and they're all in on it. The way out of this mess isn't going to come from them.

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  1. OneOhOne says:

    Per their own web page, the Bank for International Settlements’ current deposits are listed at 200+ billion SDRs (or Special Drawing Rights, where SDR 1 = USD 1.41).

    I for one have a problem with the term “billion” as it is used in different countries. In the United States and in Canada, a billion represents 1,000,000,000 (a thousand-millions).

    In England and elsewhere, however, a “billion” (“un billón” in Spanish) represents 1,000,000,000,000 (a million-millions).

    Without the actual numbers shown in BIS’s financial disclosures, I have absolutely no way of knowing whether that entity’s deposits are (in U.S./Canadian English) 200+ BILLION SDRs, or 200+ TRILLION SDRs.

  2. setatliberty says:

    I would like to believe that there will be a way out of this mess. If it were possible, it could only be done through a revolt from within the ranks of the military forces for independence, and as you say, “It isn’t pretty.”

    I really don’t think that anything is going to stop the beast at this point.

    Amid a discussion on the Federal Reserve’s policies, I heard this question raised to an investment adviser on the radio a couple of years ago:

    Q: “What would you say at this point would be the soundest investment that you would recommend to our listeners?”

    A: “Remember when your grandmother used to tend a garden, and she canned all those fruits and vegetables?”

    An optimist is merely a pessimist that refuses to face reality.

  3. I thought this was relevant here. This is a recent op-ed by none other than Lawrence Summers who is basically saying the current economic outlook is grim.

    First he says:

    “If a recession were to occur, monetary policymakers would lack the tools to respond. There is essentially no room left for easing in the industrial world. Interest rates are expected to remain very low almost permanently in Japan and Europe and to rise only very slowly in the United States. Today’s challenges call for a clear global commitment to the acceleration of growth as the main goal of macroeconomic policy. Action cannot be confined to monetary policy.”

    What could he possibly mean by “action cannot be confined to monetary policy”? That seems very vague. Of course, his solution? Predictable:

    “What is needed now is something equivalent but on a global scale — a signal that the authorities recognize that secular stagnation, and its spread to the world, is the dominant risk we face.” (Emphasis on ‘global scale’).

    • WannabePhilosopher says:

      Very interesting article coming from Summers who, as a former potential candidate for chairman of the Federal Reserve, I think we can safely assume is the establishment of the establishment. What a stupid statement by Summers, “They must indicate a willingness to be creative in the use of the tools at their disposal.” How about publicly buying stocks like the JCB does? Is that creative enough for him? And there’s that powerful word “global.” What is truly meant by TPTB when they use it in that sense? What is the next step in the end game from here? I think it will be QE4, and negative interest rates as well as a ban on cash except this time overtly coordinated with all the worlds’ major central banks doing it at the same time. I think Gordon T. Long sums it up pretty well in his latest presentation.

      Found here if anyone’s interested:

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