“As a group, central banks have lost credibility and when the ECB starts QE this week, the beginning of the end for Central Banks will be well under way”. – Steen Jakobsen, Chief Economist, Saxobank, January, 2015
On November 30th, 2014, persistent pressure from many of the people and groups in Switzerland, resulted in them being granted a referendum.
The referendum question was three-fold, and sought approval from the Swiss people to :
1. Prevent the Swiss National Bank (SNB) from selling any more of the country’s gold reserves.
2. To repatriate the country’s gold, currently held in central banks abroad.
3. Ratify a mandate, that would ensure that gold made up at least 20% of the SNB’s reserves.
It was an ambitious set of referendum requests, even for a country like Switzerland, who unlike most countries, are regularly invited to partake in really quite significant policy deciding referenda.
The predictable result though, given the way that the global fiat banking system is set up of course, went emphatically against the “precious metal” option, and in favour of the Swiss Franc remaining firmly as a 100% fiat-based monetary system.
The widely expected result was much to the chagrin of the “gold bug” community around the world, who had “hoped against hope” for a “Yes” vote, as they patiently wait for their “ship to come in”; a “ship” that will arrive when, as they see it, gold resumes its “rightful place” as the “backing” for money.
Increasingly it seems, they may have a very long wait indeed.
Banking has “moved on to pastures new”, and they have a far more profitable and influential control mechanism weapon to play with than gold ever was. Expecting them to relinquish that unlimited money production power without a massive fight, would appear to be an increasingly futile hope, short of massive system collapse.
Inevitably though, the Swiss referendum result was followed by the “to be expected” claims of conspiracy and vote-rigging by the gold bugs.
But in truth, no such conspiracy was needed, given the “wall to wall” news media “coverage” there, “news” that was, surprise, surprise, was unswervingly and universally pro-fiat banking. The Swiss news media went into hyperbole overdrive, and effectively howled that “the sky would fall in”, should the Swiss people be foolish enough to go against the recommendation of their Central Banking overlords.
The result was monstrous “wag the dog” stuff, with the Swiss Central Bank “tail”, without doubt, wagging the “dog”of the Swiss people’s opinion.
Given the way that the vote went though, coupled with the banking system’s determination to have their own way, “come hell or high water”, then let’s just say that it’s been “interesting”, to observe the SNB’s next moves.
It was only as recently as 2011, that the SNB announced that they were “pegging” (isn’t that just a euphemism for “rigging”?) the Swiss Franc, to the Euro. And to think that most are still under the mass hypnosis that we live under a system of “Free Market” Capitalism! But, that’s very much a discussion for another day, but one that we will definitely be returning to regularly here in these pages, in the very near future.
By no means a universally popular move at the time then, the “Euro peg policy” no doubt served Central Banking’s agenda and purpose at that time. But now, “events”, as they say, have “moved on”, and that 2011 decision has been dramatically superseded, and decisively reversed.
Without warning then, on 15th January, 2015, the SNB made their surprise move, by announcing that they were removing the “Swiss Franc-Euro peg”.
The result caused instantaneous money market chaos; chaos that turned out to be literally unparalleled this century, with the Swiss Franc rising 30% in value against the Euro … within 30 minutes!
Quickly dubbed as “Franc-ogeddon”, the rate moved more in one day, than it had done in the previous 1,000 days, resulting in a move of over $30,000 per Forex contract.
The move of course, horrified Swiss exporters, who saw their products suddenly becoming massively more expensive. With in excess of 40% of all Swiss exports being sold directly into Eurozone countries, an “overnight” strong Franc was seen as a nightmare for the country’s leading exporters, with luxury goods and tourism obviously being particularly badly hit.
Add to that, the inevitable drop in the value of the Swiss stock market, (in excess of 10%), and it becomes even more interesting to speculate as to just why they made their move at all.
The Swiss National Bank, had for a very long time, been “supporting” (some would go so far as to say, “propping up”) the artificial and ailing Euro. In fact the SNB had amassed close to 600 billion Euros on their balance sheet, a fact that on the surface, made the move seem even more surprising. But the Central Banking conglomerate has its own supra-national agenda to look after.
The reality then, when the dust settled, was that the surprise announcement had resulted in the fastest and most severe currency “fluctuation” of the 21st century.
One of the great lessons and reminders to come out of all of this of course, is to never trust a word that banking executives say, because in the final analysis, it is only their actions, not their slippery “reassurances”, that ultimately tell the real story.
The Swiss export community’s dismayed reaction was hugely understandable, especially given that a mere THREE days prior to the shock announcement, those same SNB executives had “reassured the markets” ( for that read, “successfully lied to the markets”) that the Central Bank would continue on as normal, and that the existing Swiss-Euro peg policy would continue.
That level of duplicity was surely criminal deception of the highest order, and no doubt “well placed insiders” who had been made aware of the move, made a killing on the day.
In what other field of human endeavour though, could you engage in that level of deception and duplicity, where not only the activity would go completely unpunished, but even be accepted as “normal practice”?
It truly is a staggering state of affairs. Weren’t such autocratic powers supposed to have died out with the reign of “absolute monarchs”, at least according to the theory of the “progress of humanity” that is?
But it seems the reality on the ground, is somewhat different to the illusion that we have been sold.
Interestingly, the very definition of criminal fraud of course, requires not just the presence of the criminal action itself, but crucially, it must also be proven that the party carrying out the fraud, had “intended” to carry out that fraud.
Don’t those three days perhaps tell their own story?
Regardless of the specifics of that problem though, such blatant lies from the banking sector, have become such a frequent occurrence today that they really have become “the norm”. They truly have become “the rule”, rather than “the exception”, and that is a hugely troubling trend to say the least.
But the bigger truth, hiding in amongst all such murkiness though, is that as deceptive as these sort of “manipulations of their own system” are, they pale into insignificance, when measured against the rarely-ever-discussed foundational crimes of the concept of banking itself.
In future articles, we will be dissecting many of these faults in detail. We’ll be putting the very functioning of banking under the spotlight, as well as placing its current activities into their crucial historical context.
The results will shock many, but it is a reality that we all must face up, if we are not to simply fall victim to the next iteration of the core fraud of banking; a fraud that is at the heart of the regular depressions and recessions that blight every economy. Banking in the future may well be dressed up to look different, but it will bear the same hallmarks, and carry the same “fingerprints” as it does now, we just need to know how to identify them.
What will become unavoidably obvious during our analysis, is that our current system of “banking”, contains intentional and structural flaws; flaws that were deliberately designed into the process, right “from the drawing board”, and they were put right into the heart of the system. And until those flaws become “common knowledge”, we will continue to be victims of the worst excesses of predatory banking.
The current global monetary system then, is proving to be more volatile and fragile than ever, as we are forced to reap the inevitable consequences if its fraudulent design. This volatility really ought to be seen as its death throes, despite “impressions” designed to lead the unwary to believe that the opposite is true.
But what continues to be proven, again and again, is that banking has many tricks up its sleeve, that it uses to propagate and perpetuate itself.
What is true also though, is that any pretence even of “normal” banking activity, has long ago been abandoned by Central Banking. As far as they are concerned, the gloves are off and it’s no holds barred, so expect anything.
“Bail outs” will be replaced by “bail ins”, with bank customers having their accounts raided to fund shortfalls, and of course, the wholly fraudulent, artificial life support of QE counterfeiting, filling in the gaps.
Following the Swiss debacle though, something has changed. Even the normally servile financial media have been asking serious questions, this time regarding central banking’s ability to even maintain its own stability, let alone that of its member major banks.
Left only with its usual, fake, “extend and pretend” tactics, and following the same, fraudulent and morally bankrupt policies, the entire “debt-based monetary system” is now seen as being stretched beyond credulity.
So much so, that honest “insiders”, like Saxobank’s chief economist, Steen Jakobsen, have lost patience.
Jakobsen made the following scathing comment in the aftermath of the sneak Swiss move …
“As a group, central banks have lost credibility and when the ECB starts QE this week, the beginning of the end for Central Banks will be well under way”.
Such withering assessments have been commonplace among banking critics for a long time, but Jakobsen has to be considered as an “insider”, working for an “insider bank” itself; a bank which unfortunately found itself on the wrong end of a Central Bank’s lies, who suffered huge losses on the day as a result.
Now when the banking system starts cannibalising its own like that, then you know that it really is time to start taking some serious precautions.
Surely then, 2015 is set to see further desperate, major moves, as banking continues to try to transition from the existing dollar-dominated monetary system, to something altogether quite different.
The ramifications of, and “fallout” from, all of these financial ructions, will no doubt continue to unfold over the course of the next few years, but there is little doubt now, that the long expected emergence of China, along with its BRICS partners, into global central banking functionality itself, is a reality, and had a major part to play in the SNB’s decision.
In 2014, Switzerland had been losing ground to Luxembourg, in securing a “seat at the top table”, in the race to become a “hub”, licensed to directly handle trades denominated in Chinese Renminbi.
To say that the move is a challenge to the U.S. Dollar’s reserve currency status, is an understatement.
But, a word of caution, it has to be remembered that the players behind the global Central Banking System, are no respecters of national boundaries. They have been here before, and when the time comes, they will not hesitate to mercilessly follow their agenda, regardless of the US Dollar’s historical status. The dollar after all, is not the first World Reserve Currency, and it won’t be the last, and banking has survived them all.
It is a very long time since the whims of a “mere” Sovereign State or Nation State, trumped the “implacable juggernaut” policies of the Central Banking System.
And rest assured, that when the time comes for China to remove its own “peg”, from the Petro Dollar itself, then it will be no surprise, at least not to the only real “super power” that exists on the planet right now …. the Central Banking System itself.
Because regardless of its seeming weakness right now, that Super Power will protect the fraudulent functioning of the banking process itself, the original “Money Changers Ruse”, with all of their cunning and guile.
And any who doubt the “super power” terminology, need only remember that without the necessary “life blood” of bank-supplied debt-funding, currently supplied in limitless quantities by this debt-based monetary system, then none of those tanks, fighter jets and aircraft carriers are going anywhere, such is the financial chokehold that Central Banking’s limitless capacity to create money, has on subservient “governments”; governments who long ago “sold out”.
As President Franklin Delanore Roosevelt once famously said though …
“In politics, nothing happens by accident. If it happens, you can bet it was planned that way.”
Following the bankruptcies of many nations States in the 1920’s and 1930’s, that quote even more powerfully applies to the Central Banking System itself of course!
And now, hard on the heels of the Swiss lightening attack, suddenly comes the “necessity” of “European QE”, muscling in to bail out the big banks, to the tune of 75 billion Euros a month! All being made available of course, to buy up the previous set of toxic, worthless, so-called “bank assets” that they had accumulated.
So once again, here we are, with debt being used as a weapon of control, to keep nation states in line.
It’s the oldest trick in then book!
There is an apocryphal quote, often attributed to president John Adams, that has him saying …
“There are two ways to conquer and enslave a nation. One is by the sword. The other is by debt.”
Regardless of who actually said it, it’s hard to argue with its truthfullness.
And so as we move ahead, now Greece attempts to embark on its anti-austerity program, with Syriza at the helm, claiming that it will pursue polices which are, without doubt, in direct opposition to to the ECB’s debt agenda.
It remains to be seen what “surprises” will be “fired” Greece’s way.
As Lord Acton once famously said though …
“The issue which has swept down the centuries, and which will have to be fought sooner or later, is the people versus the banks.”
Henry Ford too, seemed to have a handle on the problem, when he said, “It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.”
Who knows when “tomorrow” will come, but perhaps we ought not to hold our breath that the partnership between then banking giants of Switzerland and China, represents that dawn!
Co-Editor of Q Wealth