Maynard57: I got an email last night with the question, can't the GOI just tell the CBI to initiate the new rate?
It's been said often enough that the CBI is constitutionally independent from the GOI. But a more accurate way of looking at the CBI is in comparing it to the Federal Reserve and other Central Banks of the World
As with the Fed, central banks are owned by other private banks. In turn Central Banks own the Bank of International Settlement (BIS) Lead counsel for the Fed in his testimony durng a Freedom of Information Act Lawsuit brought by Bloomberg in New York said as much:
Federal Reserve Banks are “independent corporations”, which are “not agencies”, are “privately held”, and have “private boards of directors" and "THe BIS is a closed organization owned by 55 central banks . . . ." The big shots of all the central banks meet once a year in Basel, Switzerland.
So, no the GOI couldn't really tell the CBI what to do without essentially revoking the concept of private ownership of property, and good luck with all that.
Read More Link on Right
And as for why the Fed Reserve, Currency Comptroller and FDIC vote for Basell III at this time is so bloomin' important, its the timing of it all and the circumstances surrounding it that are so encouraging for us as dinar investors.
It was expected that our Basel compliance would be deferred to 2015, however the Basel Committee on Banking Supervision on January 6, 2013 succumbed to the pressure of the global banking sector and extended the implementation schedule to the year 2019. Here's where it gets interesting:
THey also eased Basel requirements and broadened the definition of liquid assets. Foreign currency holdings can be included in meeting the common equity ration for banks in having the required liquidity. Whoa!
Consider this: THe big 4 US banks could probably already meet the Basel III strictures, its the smaller banks, entities over $50 million, hedge funds and yada yada that were traditionally in the 2 percent range and couldn't pull this off
We had until 2015, initially, and then 2019 after the Basel revisions Suddenly, all these little banks can count foreign currency, such as their dinar, and the Fed Reserve and Comptroller and FDIC vote now, even though they have until 2019! ANother dirty little secret: THe regulations passed by the Fed Reserve, Comptroller and FDIC are actually STRICTER than the requirements of Basel III!
Why? 'CUz our banks are holding butt loads of IQD we got in the currency swap in early 2004 (i think) and they can meet stricter requirements than the recently made softer Basel III guidelines. When you are gonna do business, who would you NOW rather do business with?
So with the sudden vote recently, a whole lot of money to meet capital requirements had to come from somewhere That somewhere in my speculation - is the revalued IQD. I believe that the financial players were given an IQD rate and a date.
That is my speculation on this, and let me tell you I am so pumped about this