3 Minute Gold News
something solid as the ground shifts
Topic:
The central banking system we’re all living under is ruled by the BIS (Bank for International Settlements).
The BIS is the central banker of the central banks. They give “guidelines” to all the central banks, and provide them with banking services.
The BIS also gives guidelines to nations and to commercial banks. Be a shame if your nation didn’t get a loan. By getting all the money to work together for the benefit of those with all the money, they can keep the system that supports them having the majority of the money and power together.
But centralized systems of all sorts are subject to cycles that rise and fall.
The BIS has a committee called the Basel Committee that writes more guidelines and supervisory stuff for the private commercial banks. If all those banks follow the Basel rules then the whole BIS system should be safe when the cycles fall. Right?
But power wants more power and committees aren’t so quick to change. And so – crisis happens.
Then the Committee gets together and chats about that crisis and what to do about it.
Then they do a speech to make themselves feel like they’re doing something.
Here we go:
Pablo Hernandez de Cos is the Chair of the Basel Committee on Banking Supervision and the head central banker of Spain. Probably a really nice guy.
The Basel Committee makes up “guidelines” and supervising rules for commercial banks in nations with central banks.
Their newest guidelines are called Basel III and include having more bank capital and more liquidity sitting dormant in the banks so we don’t get a repeat of the 2008 Financial Crisis. Best of luck.
He spoke in the U.S. on April 12, 2023 to the Institute of International Finance – a group of banking elites looking at commercial banks working with other commercial banks in other nations. Cross-borders. In other words: competitors.
Synopsis/Decode of the Basel speech:
Here’s the most important things going on in banking:
- digitalisation of finance
- climate-related stuff
- updating the how-to-supervise-banks guidebook
- non-banks and banks working together (and not sharing data with us)
- banks using third- and fourth-party service providers (and not sharing data with us)
- recent episodes of banking stress (like banks failing and going bankrupt and wiping people out)
The pandemic financial crisis wasn’t the Basel Committee’s fault. Banks got huge amounts of money from governments (meaning taxpayers gave money to private banks).
The Committee is looking over what happened. Probably lots of reasons – but it wasn’t the Committee’s fault. It will take a long time for us to review because well… we’re a committee… and important.
Some banks aren’t following our guidelines. That’s not our fault.
The central banking system only works if all the commercial banks follow the guidelines.
Each bank is responsible for their own actions.
If the bank doesn’t do as we suggest then it’s their fault if they fail.
Recently, when a bunch of banks failed, we held meetings and the commercial banks actually exchanged enough information and collaborated cross-border enough to be “effective”. The “acute stress” had them cooperating. We booked the meetings so we saved the day.
Banks don’t like supervisors because banks want to make money.
Banks don’t welcome supervisors to limit their profit to make the central bankers safe, and that makes us sad.
Vested interests don’t want to put capital into reserves and liquidity.
They are selfish.
Our guidelines are a minimum of capital and liquidity. You banks decide how much to hold. If you don’t have enough and you go bankrupt it’s your fault.
If a bank isn’t doing business with other nations it doesn’t have to follow our guidelines.
We’ll leave it up to those bank “jurisdictions” to decide.
Not our fault if you fail.
But if you don’t ALL follow ALL our guidelines together then the whole central banking system could fail.
High inflation, lower growth and lots of geopolitical tension caused banks to fail last month.
Those things are all still here.
So the whole banking system could completely crash if you ALL don’t do everything in our guidelines.
If central banking fails and the whole system crashes then it’s not our fault.
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That was the speech.
https://www.bis.org/speeches/sp230412.htm
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Nothing on this site is intended as individual investment advice. We’re all watching which way the wind is blowing.
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Spot Gold and Silver today:
via Gold Price
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Cariboo Gold Rush Trail, British Columbia, Canada
With so much up in the air, and new technology bringing us evolving ways to pay for goods, it’s a time to diversify and watch. Watch what the elite do. Watch what they say to each other in speeches.
The central banking system is based on ever increasing debt. There must be more people to loan to, or more products to take a loan out for, or a new fractionalized, digital tokenization, where there are loans to invest in pieces of things if no one can afford to buy a whole thing: house, art, stock. Or a narrative of climate changes that shockingly needs more loans for new products to combat the narrative.
Those with an advantage want to keep it. Those with new technology want to gain an advantage. All technology is an extension of us as humans. Bikes are an extension of our legs.
Diversions will happen while the bigger players are setting up. Those with power will work together in a crisis to keep power. How can it be any other way?
Liars, liars, banks on fire.
painting by: alex schaefer alex schaefer’s website
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Coins and Crowns
words and music Elaine Diane Taylor
SOCAN/ASCAP
from the album Coins and Crowns
Coins and Crowns is featured in Episode 1 of Mike Maloney’s viral documentary series Hidden Secrets of Money.
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Not Much of a Holiday (Bank Holidays and Media Persuasion)
words and music Elaine Diane Taylor
Available on iTunes
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A Terrible Breeze (War and Social Media)
The news comes down
A little bluebird sings
Words of war
Fire and furious things
Of testing might
‘Til no patience knows
If keeping still
Still keeps you safe at home
There’s a terrible breeze
They speak of today
Of threats that used to live a world away
We all know wind
Can blow both ways
And a terrible breeze can blow us all away
A terrible breeze can blow us all away
A worldwide net
Sees our village grow
’til we all forget
What each one used to know
How a blind bird’s wings
Can reach the shore
And turn the wheel of peace and war
Village fools sinking down, down, down
Debt and gold wound in numbered shrouds
Deal of a life there’s bread and clowns
Can we afford another go around?
The news comes down.
There’s a terrible breeze. The news comes down.
words and music Elaine Diane Taylor
Single available on iTunes
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Preparing for the Fall live boutique album available for digital download — featuring Wag the Dog, Black Swan Dive, American Pie and Gods of the Copybook Headings. Also available on iTunes, Google Music, Amazon Music and major digital distributors.
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The Gods of the Copybook Headings
words by Rudyard Kipling and music by Elaine Diane Taylor
from the album Preparing for the Fall.
The copybooks of the early 1900s gave us all the wisdom we need. The sayings that were copied are the truths, the gods, of our world. All the empires who followed the gods of the marketplace instead have fallen, and there’s terror and slaughter when the gods of the copybook headings return. The lyrics are by Rudyard Kipling. One of my gurus.
Another Week on Wall Street
words and music Elaine Diane Taylor
from the album Coins and Crowns.
“A little grease (Greece) is floating out to sea, and little pigs (Portugal, Italy, Greece and Spain) are bobbing up and down, they’ll send a storm and we’ll see, when the tide goes out who’s naked on the beach, when the tide goes out who’s naked on the beach“.
See the wizards wave the Wall Street wands
See the conjured piles of paper green
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Elaine Diane Taylor 