How Top Central Banks Can Bankroll European Banks

How Top Central Banks Can Bankroll European Banks


By Hwaa Irfan


As the banks that initiated the world into a global economic crisis in 2008, are entrenching the recession as the experts have no real solutions, help comes from the Federal Reserve, with Bernanke /Peyton Manning, The European Central Bank, the Bank of England, Bank of Japan, and the Swiss National Bank come to the rescue, at least until December 2011. The reason – European banks (especially France) now have no access to market capital as China takes a tougher stand on the debt market, the rescuers are the world’s top central banks at a time when the stock market’s safe haven in the gold standard.

In coordination with each other and the U.S. Federal Reserve, will ensure European Banks liquidity, thus rick shoring the global dollar economy. Head of IMF, Christine Lagarde’s comment to the Guardian, U.K., rather than provide assurance that this is the action of experts, serves to underline the fact that it is an act of desperation to ensure  the global control of the mighty few:

“We have entered into a dangerous phase of the crisis,” she said. There is still a path to recovery, Lagarde said, but it is a “narrow” one.”

It will involve auctioning the dollar, the outcome of which might be over-estimated. The top central banks will be able to bid for an unlimited amount of U.S. dollars at a fixed rate of interest. There will be three separate auctions, the first of which is to take place on October 12 2011. This also might counterbalance Central Bank concerns over their own exchange rate appreciation, and their own material decline in earnings. It might also be a step towards a United Europe, with one Central Bank, as is exampled by the European Central Bank which sets monetary policy for all of the eurozone; just as for instance their move towards one educational, and health system. The European Central Bank is independent of governments! If the European Central Bank was for instance to become the Central Bank for the whole of Europe, then the fact that they are responsible for price stability, is no shining example.

Under the terms of the deal, banks will be able to bid for unlimited amounts of US dollars at fixed interest rates in three separate auctions. The first of these will be on 12 October.

Why Should We Be Concerned?

Beyond whether or not the question as to whether one should continue to keep one’s funds in a bank in these times, there are some fundamental issues. It is one that has been challenged by a growing number of American citizens who call for the disbanding of the Federal Reserve Act of 1913.  They believe that all rights, and profits thereof, belong to those who formed that wealth, the citizens and the U.S. government. The force behind a U.S. Central Bank system was:

  • Senator Nelson Aldrich (R., R.I.), head of the National Monetary Commission
  • A congressional committee
  • Frank Vanderlip of Rockefeller’s National City Bank
  • Paul Warburg of the investment firm of Kuhn, Loeb, & Co.
  • Charles Norton of First National Bank of New York, a J.P.Morgan company;
  • Henry Davison, a partner of J.P. Morgan.

There has never been an independent audit of the Federal Reserve since inception!

Central Banks, and reserves are all PRIVATE institutions – they do not belong to the taxpayer at all, and the taxpayer, the voter, does not have a say in how they are run for they operate independent of any political process, especially the Federal Reserve. The Federal Reserve like all Central Banking institutions, collect the money created by the citizens and collects interest on this money, and is known as fractional banking. These facilities are the ones responsible for control the flow of money, the interest rates and even control commercial banks. Central Banks do not only hold treasury bills, they also hold gold, and diamonds, which is the only exchange that maintains its value. As China’s central bank moves to liquidate U.S. treasuries, its central bank also functions in the same way.

Libya’s Role in It All!

Exactly what role Libya plays in this all will, like most things be revealed, but it is interesting that the so-called Libyan rebels were busy in March setting up their own Central Bank before they formed what has been recognized as a government without the participation or support of the Libyan people or the fact that the “revolution” for want of a better word is not over. They have even appointed a governor of the Libyan Central Bank. Very interesting for a country that only produces 2% of the world’s oil! By the way Gadaffi might not be as stupid as the corporate and Arab media like to depict, he refused the euro and the dollar for oil and was in the process of establishing the gold dinar under a United Africa. A functioning Libyan Central Bank would place Libya’s economy under the control of the Central Bank’s bank in Basel, Switzerland whereas under Gadaffi, the Libyan central bank was entirely state owned. This is probably what the conquering colonialist, Nicholas Sarkozy meant when he said Libya is a threat to the financial security of mankind, meaning their kind (western bankers and governments).

The Central Banks bank, or BIS for Bank for International Settlements, was established as far back as May 1930 making it the world’s oldest international financial organization, to disperse Germany’s WWI reparation payments. BIS soon developed into a repository for the gold of European Central Banks after WWII. The Board of Directors are from England, Switzerland, Germany, Italy, France, Belgium, Sweden, and the Netherlands – they make the rules that govern all Central Banks. Then within that there is the G-10 from 8 European Central Banks, U.S. Fed, the Bank of Canada, the Bank of Japan, and an unofficial member, the governor of the Saudi Arabian Monetary Authority.

As stated before, Central Banks are not beholden to governments; they do not serve the interest of nations. To avoid hyperinflation, and to keep Central Banks at a distance, Argentina, Estonia, and Lithuania have all recently instituted currency boards.

The Arab Spring may have been a spontaneous “enough is enough”, but which countries actually are a part of the Arab Spring, and which countries fall under an opportune moment to expand the plan to re-colonize, Somalia, Libya, Syria, Iran, Lebanon, is the question that needs to be answered at a time when the West’s fiat-based (paper) monetary system seems on the verge of collapse. Equally too, if it was known for some time that the fiat-based monetary system would arrive at this point in time, a lot of planning, meetings and networking must have been ensue. What else can one believe with the following prophetical comments:

 “The most serious problem we face today is the debasement of our currency by the government. The government will continue to debase the dollar until … within 12-24, months it will shrink to 1 cent … at which time Washington will be forced to create the new hard currency … A currency reform is nothing but a fancy name for state bankruptcy … A currency reform completes the expropriation of all kinds of savings … it will wipe out all public and private bonds, most pensions; all annuities, and all endowments.” – stated in the Silver and Gold Report by Dr. Franz Pick, authority on in December, 1979.

The World Bank in their 1970 Paper 447, Article 3 said world economy would be fairly stable until 1980 when it would begin falling, in domino fashion.

“Capital must protect itself in every possible way, both by combination and legislation. Debts must be collected, mortgages foreclosed as rapidly as possible. When, through the process of law, the common people lose their homes, they will become more docile and more easily governed through the strong arm of government applied by a central power of wealth under leading financiers. These truths are well known among our principal men who are now engaged in forming an imperialism to govern the world. By dividing the voter through the political party system, we can get them to expend their energies in fighting for questions of no importance. It is thus by discreet action we can secure for ourselves that which has been so well planned and so successfully accomplished.” – American Bankers Association 1924.

It is with some alarm one notes the speed at which countries around the world who have Libyan monies in their banks have been quite quick to release the frozen assets into the control of the post –Gadaffi transitional “government” ready at least with a Central Bank, the only Central Bank on record to be formed in a matter of weeks!

With that gesture, of benefit largely to the wealthy, he turned a budget surplus bequeathed to him by Bill Clinton into a deficit virtually overnight. Even launched in an unnecessary war against Iraq, Bush has continued to defend his tax cuts while the costs of war have mounted, and the budget deficit has climbed with them.



Batemarco, R. “Central Banks, Gold, and the Decline of the Dollar.”

E. “Libya: All About Oil, or All About Banking?”

Elliot, L. “Europe’s Debt Crisis Prompts Central Banks to Provide Dollar Liquidity.”

Newman, A. ““Libyan Rebels” Create Central Bank, Oil Company.”

“The World Central Bank: The Bank for International Settlements.”

“Top Central Banks to Provide Dollar Liquidity.”


Related Topics:

G20 Reasons Why Your Money is Not Your Own

The Banks Surviving on the Man in the Street

Who or What is Financing the States?

Global Economic Crisis Bailouts in Context

Wall Street: Inside Job

Iceland Walks Away from the International Banking System

Capitalist Democracy

Libya: How to Reverse a Revolution

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