7
5
5
“What will the new regulator do about debt and loans? To prevent another debt bubble, the new body will recommend financial companies maintain provisions against credit losses and may impose constraints on borrowing.”
What sort of constraints? The Basel Accords imposed by the BIS have not generally worked out well. The first Basel Accord, issued in 1998, was blamed for inducing a depression in Japan from which that country has yet to recover; and the Second Basel Accord and its associated mark-to-market rule have been blamed for bringing on the current credit crisis, from which the U.S. and the world have yet to recover. These charges have been explored at length elsewhere. The suspicious might see these failures as intentional. The warnings come to mind of Congressman Louis MacFadden, head of the House Banking and Currency Committee during the Great Depression: “It was a carefully contrived occurrence. International bankers sought to bring about a condition of despair, so that they might emerge the rulers of us all.” David Rockefeller, a key player in international finance, echoed this thinking in 1994, when he said at a UN dinner, “We are on the verge of a global transformation. All we need is the right major crisis and the nations will accept the New World Order.”
The Amorphous 12 International Standards and CodesMost troubling, perhaps, is this vague parenthetical reference in a press release issued by the BIS, titled “Financial Stability Forum Re-established as the Financial Stability Board”:
“As obligations of membership, member countries and territories commit to . . . implement international financial standards (including the 12 key International Standards and Codes) . . . .”
This is not just friendly advice from an advisory board. It is a commitment to comply, so you would expect some detailed discussion concerning what those standards entail. However, a search of the major media reveals virtually nothing. The 12 key International Standards and Codes are left undefined and undiscussed. The FSB website lists them, but it is vague. The Standards and Codes cover broad areas that are apparently subject to modification as the overseeing committees see fit. They include:
