The Bank for International Settlements Who Rules the World
Enviado por ei en septiembre 17, 2013 – 19:19 pm By Frank de Varona
The sordid history of the Bank for International Settlements (BIS)
The Bank for International Settlements (BIS) was created on May 17, 1930 to administer or “settle” the World War I reparations imposed on Germany under the Treaty of Versailles.
There were four very powerful individuals who played a very important role in the founding of BIS:
Charles G. Dawes,
Owen D. Young, Hjalmar Schacht, and
Adam Lebor wrote the best and most up-to-date book on BIS called Tower of Basel: The Shadowy History of the Secret Bank that Runs the World (2013). This book is the first investigative history of the most secretive and powerful global financial institution in the world.
Lebor conducted many in the interviews with international central bankers and their employees, including Paul Volcker, the former chairman of the Federal Reserve Bank (the Fed), and Sir Mervyn King, former governor of the Bank of England.
He also conducted extensive archival research of the BIS in Basel, Switzerland and other libraries in the United States and Great Britain. His book included biographies on the major central bankers who founded the bank and the important officials that worked at BIS.
James C. Baker was the author of a pro-BIS book entitled The Bank for International Settlements: Evolution and Evaluation (2002). This author wrote a comprehensive history of BIS.
Gianni Toniolo with Piet Clement wrote a book entitled Central Bank Corporation at the Bank for International Settlements 1932-1973 (2005). These two professors wrote the history of BIS from 1932 to 1973.
Carl Teichrib contributed to an article or report entitled “Global Banking: The Bank for International Settlements” prepared by The August Forecast and Review, which was published on October 14, 2005.
The article presented a comprehensive history of the creation of BIS and a short biography of the founders and history of BIS up to 2005. Edward Jay Epstein wrote an article about the BIS in Harpers Magazine in 1983. He described the BIS as the “most exclusive, secretive, and powerful supranational club in the world.”
In spite of these three excellent books and many articles, the BIS is completely unknown by the vast majority of the American people. This most powerful supranational bank has always wanted to keep a low profile.
Even well-known authors who have written books describing the history of the operations of the Federal Reserve Bank as well as the powerful organizations that run the United States and the world, such as the Bilderberg Group, the Trilateral Commission, and the Council of Foreign Relations, do not even mention the existence of the BIS.
This is surprising as the owners and employees of the banking cartels who own the central banks of almost all the Western nations, including the United States, are all involved in the BIS. This international bank is the central bank of all the central banks in the United States and Europe, as well as other nations in the world.
The four individuals who were instrumental in the creation of the Bank for International Settlements are the following:
Charles G. Dawes. He was the director of the United States Bureau of the Budget in 1921 and later served on the Allied Reparation Commission in 1923.
His subsequent work on stabilizing the German economy won him the Nobel Peace Prize in 1925. Dawes was elected vice president under President Calvin Coolidge from 1925 to 1929.
Two years later, he was appointed ambassador to England. In 1932, he resumed his banking career as chairman of the board of the City National Bank and Trust in Chicago, where he remained until his death in 1951.
Owen D. Young. He was an industrialist who founded the Radio Corporation of America (RCA) in 1919 and served as its chairman until 1933.Young became chairman of the board of General Electric from 1922 to 1939.
He tried to obtain the nomination as president of the Democratic Party but lost to Franklin Delano Roosevelt in 1932.
Hjalmar Schacht. He served as president of the Reichsbank of Germany from December 22, 1923 to January, 1939. He was responsible for the economic recovery of Germany that allowed Adolf Hitler to rearm the German Armed Forces and lounge World War II.
Montagu Norman. He served as the governor of the Bank of England from 1920 to 1944. During those years he was one of the most influential central bankers of the world.
His power was so enormous that a single speech made by Norman could affect the New York Stock Exchange in the United States and other stock exchanges the world. Before and during World War II, Montagu Norman allegiance was to the Bank of International Settlements and not to Great Britain.
The Versailles Treaty of 1919 that ended World War I imposed on Germany a heavy burden of reparations. It required that Germany to comply with a payment schedule of 132 billion gold marks per year.
Germany was bankrupt and suffering from hyperinflation following the war and was unable to pay the enormous war reparations dictated by the Versailles Treaty.
In 1924, the Allies, or the nations that defeated the German Empire, appointed a committee of international bankers led by Charles G. Dawes and his assistant Owen Young to develop a plan to help Germany with the reparation payments.
It was decided that $800 million in foreign loans have to be arrange for Germany in order to rebuild its economy.
Dawes was replaced by Owen Young in 1929, so now the Dawes Plan became the Young Plan. Carl Teichrib contributed to an article entitled “Global Banking: the Bank for International Settlements” which was published on October 14, 2005 by the August Forecast and Review.
He explained the following: “Neither Dawes nor Young represented anything more than banking interests. After all, World War I was fought by governments using borrowed money made possible by the international banking community. The banks had a vested interest in having those loans repaid.”
Hjalmar Schacht, the President of the German Reichsbank, and Montagu Norman, the Governor of the Bank of England, came up with the idea of creating a new bank free from politics that could assist with Germany’s payments to the Allies. The need to establish such a bank for this purpose was suggested in 1929 by the Young Plan.
On January 20, 1930, the governments of the United Kingdom, Germany, France, Belgium, Italy, Japan, and Switzerland signed a document that became known as the Hague Agreement.
Article 1 of the Hague Convention or Agreement stated that “Switzerland undertakes to grant to the Bank for International Settlements, without delay, the following Constituent Charter having force of law: not to abrogate the Charter, not to amend or add to it, and not to sanction amendments to be Statutes of the Bank referred to in Paragraph 4 of the Charter or otherwise than in agreement with the other signatory governments.”
Article 10 of the Hague Convention or Agreement stated that “the bank, its property and assets and all deposits and other funds entrusted to it shall be immune in time of peace and in time of war from any measure such as expropriation, requisition, seizure, confiscation, prohibition or restriction of gold or currency export or import, and any other similar measures.”
Thus, the powerful BIS was born as a result of this international treaty.
According to Adam Lebor, Gianni Toniolo with Piet Clement, and James C. Baker, authors of books regarding the history of the Bank for International Settlements, this supranational banking institution was created with unprecedented powers and privileges.
The central bankers who created the BIS held politicians with contempt, the exception being if the politician was one of their own. The BIS founders wanted to build a transnational financial system that could move large amounts of capital free from political or governmental control.
The central bankers demanded and received incredible immunity from their own governments, free from any type of regulation, scrutiny, or accountability for the BIS directors and members as well as their employees.
The unprecedented immunity that was granted was the following:
Diplomatic immunity for persons and what they carry with them, such as diplomatic pouches.
Not being subjected to taxation on any transactions, including salaries paid to employees.
Embassy-type immunity for all buildings and/or offices operated by the BIS.
Freedom from immigration restrictions.
Freedom to encrypt any and all communications of any sort.
Freedom from any legal jurisdiction.
Immunity from arrest or imprisonment and immunity from seizure of their personal baggage, except in flagrant cases of criminal offense.
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 obligation relating to national service in Switzerland.
The right to use codes in an official communications or receive or send documents or correspondence by means of couriers or diplomatic backs.
On February 10, 1987, the BIS and the Swiss Federal Counsel signed a “Headquarters Agreement” which confirmed the immunities previously granted to the BIS when it was created, as well as additional immunities.
Article 2 stated that “the Bank buildings shall be inviolable… No agent of the Swiss public authorities may enter therein without the express consent of the Bank…
The archives of the bank and, in general, all documents and any data media belonging to the Bank… shall be inviolable at all times and in all places. The Bank shall exercise supervision of an police power over its premises.”
Article 4 of the Headquarters Agreement stated the following: “The Bank shall enjoy immunity from criminal and administrative jurisdiction, except to the extent that such immunity is formerly waived in individual cases by the president, the general manager of the Bank, or their duly authorized representative.
The assets of the Bank may be subject to measures of compulsory execution for enforcing monetary claims.
On the other hand, all deposits entrusted to the Bank, all claims against the Bank and the shares issued by the Bank shall, without the prior agreement of the Bank, be immune from seizure or other measures of compulsory execution and the sequestration, particularly of attachment within the meaning of Swiss law.”
In essence, the 1987 Headquarters Agreement granted the BIS similar protections given to the headquarters of the United Nations, the International Monetary Fund, and diplomatic embassies.
On February 27, 1930, the governors of the central banks of Germany, Great Britain, France, Italy, and Belgian met with representatives from Japan and three American banks to establish the Bank for International Settlements.
Each nation’s central bank purchased 16,000 shares. Since the Federal Reserve Bank was not permitted to own shares of BIS for political reasons, three United States banks, the First National Bank of New York, J. P. Morgan, and the First National Bank of Chicago, created a consortium and each bank purchased 16,000 BIS shares.
Thus, the United States representation at the BIS was three times as that of any other nation.
This international bank’s initial share capital was set at 500 million Swiss francs. The owners of BIS purchased 200,000 shares of 2,500 of gold francs. The governors of the founding central banks were ex-officio members of the board of directors and each could appoint a second director of the same nationality.
Many years later, on January 8, 2001, an Extraordinary General Meeting of the BIS approved a proposal that restricted ownership of BIS shares to central banks.
At the time, 13.7% of all shares were in private hands. BIS set a price of $10,000 per share which was over twice the book value of $4,850. Some private owners of the BIS shares filed a lawsuit against the bank insisting that the shares were worth much more money than what was offered.
At the beginning, central bankers wanted to keep a very low profile and complete anonymity for their activities.
The first headquarters of the BIS was an abandoned six-story hotel, the Grand et Savoy Hotel Universe, with an address above the adjacent Frey’s Chocolate Shop, near the train station at Basel, Switzerland.
No sign was placed at the door identifying the BIS. In May 1977, however, the BIS moved to a more visible and efficient headquarters.
The new building was an 18-story circular skyscraper that arises over the medieval city of Basel, Switzerland and soon it became known as the “Tower of Basel”. The new building is completely air-conditioned and self-contained.
It has a nuclear bomb shelter in the basement, a private hospital, and some 20 miles of subterranean archives. From the top floor of the Tower of Base there is a panoramic view of Germany, France, and Switzerland.
During the war years, the BIS continued operating from its headquarters in Basel, Switzerland. Adam Lebor explained that “during the war, the BIS became a de-facto arm of the German Reichsbank, accepting looted Nazi gold and carrying out foreign exchange deals for Nazi Germany.”
The alliance of BIS with Germany was known in the United States and Great Britain. However, the need for the bank to keep functioning in order to maintain transnational financial operations was agreed by all the countries that fought each other during World War II.
Lebor pointed out the following: “A few miles away, Nazi and Allied soldiers were fighting and dying. None of that mattered at the BIS. Board meetings were suspended, but relations between the BIS staff of the belligerent nations remained cordial, professional, and productive.
Nationalities were irrelevant. The overriding loyalty was to international finance.” During the war years, an American, Thomas McKittrick, was president of the bank.
A Frenchman, Roger Auboin, was the general manager and a German, Paul Hechler, was the assistant general manager and a member of the Nazi party. An Italian, Raffaelle Pilotti, was the Secretary-General, a Swedish, Per Jacobssen, was the Bank’s economic advisor; and other employees were British.
Since the time that Adolf Hitler came to power in Germany in 1933 and to the end of World War II in 1945, five German members of the board of directors of the BIS were Nazis. After World War II they were convicted of war crimes. These BIS directors were the following:
Hjalmar Schacht, who was the architect of the economic recovery of Germany and served as the Reichsbank President until 1939.
Hermann Schmitz, the Chief Executive Officer of IG Farben, a gigantic German chemical conglomerate that during the war built and ran a factory of synthetic rubber using prisoners as slave laborers at the concentration camp at Auschwitz.
Walther Funk, who replaced Hjalmar Schacht at the Reichsbank and who was a member of the Nazi party since 1931. He worked for the SS Chief Himmeler.
Baron Kurt von Schröder, the owner of the J.H.Stein Bank, a bank that held the deposits of the Gestapo.
Emil Puhl, who was vice president of the Reichsbank bank.
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