The Bank for International Settlements based in Basel, Switzerland is a hugely secretive organisation considered to be the Central bank of Central Banks. Several times a year the Worlds Central Bank leaders meet, in secret, to decide on global (central bank) monetary policy. It is highly likely that the BIS also sets policy for international monetary organisations such as IMF, World Bank, OECD and the Basel Accords is something of a giveaway.
There is a general belief that the BIS holds within its vaults the majority of the gold holdings of the World, no-one outside of the organisation or its subsidiaries knows quite how much that may, and allegedly including confiscated Nazi gold.
The Bank for International Settlements (BIS) is an intergovernmental organization of central banks which “fosters international monetary and financial cooperation and serves as a bank for central banks.” It is not accountable to any national government. The BIS carries out its work through subcommittees, the secretariats it hosts, and through its annual General Meeting of all members. It also provides banking services, but only to central banks, or to international organizations like itself. Based in Basel, Switzerland, the BIS was established by the Hague agreements of 1930.
Among the BIS board of directors are Ben Bernanke (former Chairman of US Federal reserve), Mervyn King (former Governor, Bank of England) and William Dudley (Head of New York Federal Reserve Bank), these are only front men, for public eyes. The real power brokers behind the BIS are the Council of 13 members.
According to renowned Georgetown historian, Carroll Quigley:
“The Power of financial capitalism had another 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 Basle, Switzerland, a private bank owned and controlled by the world’s central banks, which were themselves private corporations. Each central bank, in the hands of men like Montagu Norman of the Bank of England, Benjamin Strong of the New York Federal Reserve Bank, Charles Rist of the Bank of France, and Hjalmar Schacht of the Reichsbank, sought to dominate its government by its ability to control treasury loans, to manipulate foreign exchanges, to influence the level of economic activity in the country, and to influence co-operative politicians by subsequent rewards in the business world.”
The BIS, its offices, employees, directors and members share an incredible immunity from virtually all regulation, scrutiny and accountability.
A quick summary of their immunity includes:
- diplomatic immunity for persons and what they carry with them (i.e., diplomatic pouches)
- no taxation on any transactions, including salaries paid to employees
- embassy-type immunity for all buildings and/or offices operated by the BIS
- no oversight or knowledge of operations by any government authority
- freedom from immigration restrictions
- freedom to encrypt any and all communications of any sort
- freedom from any legal jurisdiction
Further, members of the BIS board of directors (for instance, Alan Greenspan) are individually granted special benefits:
- “immunity from arrest or imprisonment and immunity from seizure of their personal baggage, save in flagrant cases of criminal offence;” “inviolability of all papers and documents;”
- “immunity from jurisdiction, even after their mission has been accomplished, for acts carried out in the discharge of their duties, including words spoken and writings;”
- “exemption for themselves, their spouses and children from any immigration restrictions, from any formalities concerning the registration of aliens and from any obligations relating to national service in Switzerland ;”
- “The right to use codes in official communications or to receive or send documents or correspondence by means of couriers or diplomatic bags.”
Lastly, all remaining officials and employees of the BIS have the following immunities:
- “immunity from jurisdiction for acts accomplished in the discharge of their duties, including words spoken and writings, even after such persons have ceased to be Officials of the Bank;”
- “Exemption from all Federal, cantonal and communal taxes on salaries, fees and allowances paid to them by the Bank…”
- Exempt from Swiss national obligations, freedom for spouses and family members from immigration restrictions, transfer assets and properties – including internationally – with the same degree of benefit as Officials of other international organizations.
How the BIS works with the IMF and the World Bank
The interoperation between the three entities is understandably confusing to most people, so a little clarification will help.
The International Monetary Fund (IMF) interacts with governments whereas the BIS interacts only with other central banks. The IMF loans money to national governments, and often these countries are in some kind of fiscal or monetary crisis. Furthermore, the IMF raises money by receiving “quota” contributions from its 184 member countries. Even though the member countries may borrow money to make their quota contributions, it is, in reality, all tax-payer money.
The World Bank also lends money and has 184 member countries. Within the World Bank are two separate entities, the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA). The IBRD focuses on middle income and credit-worthy poor countries, while the IDA focuses on the poorest of nations. In funding itself, the World Bank borrows money by direct lending from banks and by floating bond issues, and then loans this money through IBRD and IDA to troubled countries.
The BIS, as central bank to the other central banks, facilitates the movement of money. They are well-known for issuing “bridge loans” to central banks in countries where IMF or World Bank money is pledged but has not yet been delivered. These bridge loans are then repaid by the respective governments when they receive the funds that had been promised by the IMF or World Bank.
The IMF is the BIS’ “ace in the hole” when monetary crisis hits. The 1998 Brazil currency crisis was caused by that country’s inability to pay inordinate accumulated interest on loans made over a protracted period of time. These loans were extended by banks like Citigroup, J.P. Morgan Chase and FleetBoston, and they stood to lose a huge amount of money.
The IMF, along with the World Bank and the U.S., bailed out Brazil with a $41.5 billion package that saved Brazil, its currency and, not incidentally, certain private banks.