The Shadow Banking System: a Great Time Bomb

  ECONOMY  

Web of Debt blog / By Ellen Brown

 

The Shadow Banking System is a Great Big Ticking Time Bomb

The rules of money and banking have changed every 20 or 30 years — now is the time for an overhaul.

http://www.alternet.org/economy/shadow-banking-system-great-big-ticking-time-bomb

Photo Credit: Shutterstock.com

July 28, 2014  |  

 

 

One thing to be said for the women now heading the Federal Reserve and the IMF: compared to some of their predecessors, they are refreshingly honest.The Wall Street Journal reported on July 2nd:

Two of the world’s most powerful women of finance sat down for a lengthy discussion Wednesday on the future of monetary policy in a post-crisis world: U.S. Federal Reserve Chairwoman Janet Yellen and International Monetary Fund Managing Director Christine Lagarde. Before a veritable who’s-who in international economics packing the IMF’s largest conference hall, the two covered all the hottest topics in debate among the world’s central bankers, financiers and economists.

Among those hot topics was the runaway shadow banking system, defined by Investopedia as “The financial intermediaries involved in facilitating the creation of credit across the global financial system, but whose members are not subject to regulatory oversight. The shadow banking system also refers to unregulated activities by regulated institutions.” Examples given include hedge funds, derivatives and credit default swaps.

ECB website hacked

ECB website hacked, data stolen

http://www.euractiv.com/sections/euro-finance/ecb-website-hacked-data-stolen-303698

Published: 24/07/2014 - 13:00

The ECB was the victim of attempted blackmail by hackers. [Jurjen van Enter/Flickr]

The European Central Bank (ECB) said on Thursday its website had been hacked and some email addresses and other contact information stolen but insisted no market-sensitive data were affected.

The theft came to light after the central bank received an anonymous email on Monday night demanding money in exchange for the addresses.

While most of the data was encrypted, parts of the database included email addresses, some street addresses and phone numbers that were not encrypted. The database also contains data on downloads from the ECB website in encrypted form.

Former IRS Special Agent: An Hour With Attorney Bernhoft

Former IRS Special Agent Brings You An Hour With Attorney Robert Bernhoft

 

Dear Friends,

 

You don't want to miss the Agent For Truth radio show this Saturday, July 12th, 2014 on the Truth Frequency Radio Network at high noon central time.

 

This Saturday morning will feature my interview with Robert G. Bernhoft, founder of the Bermhoft Law Firm.  Bob joined Jeffrey Dickstein in successfully defending me in my 2005 criminal trial and Bob defended Actor Wesley Snipes who achieved acquittal on all felony counts.  Bob will share very valuable information about IRS and overall government misconduct and other insights that only an experienced trial attorney can share.

 

Be sure to visit http://www.ninehundred.net/banister/bernhoft.html to read more about the "parallel construction" phenomenon.

 

Don't miss this important show but please remember that the interview with Mr. Bernhoft was pre-recorded and therefore this show is a no-caller show. During live Saturday morning broadcasts, you can call the show at 1-866-378-7884 (1-866-37-TRUTH) to ask a question or make a comment.

 

I hope you will join me this Saturday morning from 10:00 am to 11:00 am pacific time by clicking on the "Listen Now Live" button on the right-hand side of the Truth Frequency Radio Network website.

 

Don't forget that I do have a "Twitter" account for those who prefer that particular method of communicating.  My twitter account concentrating primarily on current events and government corruption, tax matters and attacks on our Constitution and Bill of Rights is @josephbanister.  My twitter account concentrating primarily on spiritual matters and miscellaneous topics is @joebanister.

 

Inviting others to join my email list on the right-hand side of my web page or follow me on "Twitter" is encouraged and appreciated.  You can view a sample of prior newsletters here.

Kind regards,

Joseph R. (Joe) Banister

Former IRS Criminal Investigation Division Special Agent

http://freedomabovefortune.com/ ,  http://www.joebanister.blogspot.com/ ,http://www.josephbanister.com/ ,   http://agentfortruth.com/  , http://freedomabovefortunenews.blogspot.com/

II Chronicles 7:14:

And my people, upon whom my name is called, being converted, shall make supplication to me, and seek out my face, and do penance for their most wicked ways: then will I hear from heaven, and will forgive their sin and will heal their land.

Exodus 20:7:

Thou shalt not take the name of the Lord thy God in vain: for the Lord will not hold him guiltless that shall take the name of the Lord his God in vain.

Matthew 5:27-28:

You have heard that it was said to them of old: "Thou shalt not commit adultery".  But I say to you that whosoever shall look on a woman to lust after her hath already committed adultery with her in his heart.

John 6:51-52:

I am the living bread which came down from heaven.  If any man eat of this bread, he shall live forever; and the bread that I will give, is my flesh, for the life of the world.

George Orwell, 1984:

"You are a slow learner, Winston," said O'Brien gently.

"How can I help it?" he blubbered. "How can I help seeing what is in front of my eyes? Two and two are four."

"Sometimes, Winston. Sometimes they are five. Sometimes they are three.

Sometimes they are all of them at once. You must try harder. It is not easy to become sane."

Russia writes off $32bn Cuban debt

Russia writes off $32bn Cuban debt in show of brotherly love

Agreement, which stipulates that Cuba must still repay $3.2bn over 10 years, comes as President Vladimir Putin prepares for Havana trip. The Moscow Times reports

• The Moscow Times, part of the New East network
• theguardian.com, Thursday 10 July 2014 11.19 BST
• http://www.theguardian.com/world/2014/jul/10/russia-writes-off-cuban-debt

Revolutionary leader Fidel Castro (L) with Russia's President Vladimir Putin in 2000 in Havana. Putin is due to arrive in Cuba of Friday for his latest visit. Photograph: Adalberto Roque/EPA

Russia's parliament has ratified an agreement that will see Moscow write off 90% of cash-strapped Cuba's $35.2bn debt to the Soviet Union, according to the Russian news agency ITAR-Tass.

The agreement, which both countries signed in October 2013, draws a line under a two-decade-long quarrel. It stipulates that Cuba must pay back $3.2 billion over a 10 year period in exchange for Russia forgetting about the remaining $32 billion.

BRICS to launch World Bank competitor

BRICS to launch World Bank rival next week: Russia

Reuters | Moscow | Published: Jul 10 2014, 02:51 IST

http://www.financialexpress.com/news/brics-to-launch-world-bank-rival-next-week-russia/1268429/0

SUMMARY

Leaders of the BRICS nations will launch their long-awaited development bank at a summit next week and decide whether the headquarters should be in Shanghai or New Delhi

Related Articles

• S America looks towards India for investment as Narendra Modi gears up to attend BRICS summitTrade imbalance not sustainable: India tells ChinaNarendra Modi may meet Angela Merkel on way to BRICS SummitBrazil BRICS summit to be Narendra Modi's first multilateral meeting

Leaders of the BRICS nations will launch their long-awaited development bank at a summit next week and decide whether the headquarters should be in Shanghai or New Delhi, Russian finance minister Anton Siluanov said on Wednesday.

The creation by Brazil, Russia, India, China and South Africa of a $100-billion bank to finance infrastructure projects has been slow in coming, with disagreements over its funding, management and headquarters.

“The (headquarters) issue will be decided on the level of the heads of the countries,” Siluanov told journalists, adding that the choice is between Shanghai and New Delhi. BRICS leaders will meet July 15-16 in the Brazilian coastal city of Fortaleza.

The Federal Reserve is an unlawful organization

• Latest Posts:
• What is the Federal Reserve? - Part 3
• What is Fiat Currency? What is Money?
• What is Capitalism? - PART 1

Tuesday, July 8th, 2014 | Posted by Marilyn MacGruder Barnewall

What is the Federal Reserve? – Part 3

http://www.veteranstoday.com/2014/07/08/what-is-the-federal-reserve-part-3/

What is the Federal Reserve? – Part 3

… by Marilyn MacGruder Barnewall,    Global Financial Affairs Editor

July 8, 2014

An old saying tells us, “A rose by any other name is still a rose.”

“Something’s happening inside”

Unfortunately, the same cannot be said about the Federal Reserve System. First, most people refer to it as the Federal Reserve Bank. It is not a bank. It is a system. Second, the Federal Reserve System is not federal.

It is a privately held corporation owned by bankers… most of whose names are seen on Wall Street (though international banks now own larger and larger shares of the Federal Reserve System, placing control of America’s economy in the hands of non-American foreigners).

Before talking about what the Federal Reserve System does, one other important fact needs to be mentioned: The Federal Reserve is an unlawful organization. Let’s take a look at the Constitution of the United States.

Article 1 Section 8 of the Constitution says the following:

The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defence and general Welfare of the United States; but all Duties, Imposts and Excises shall be uniform throughout the United States;

To borrow money on the credit of the United States;

To regulate Commerce with foreign Nations, and among the several States, and with the Indian Tribes;

To establish an uniform Rule of Naturalization, and uniform Laws on the subject of Bankruptcies throughout the United States;

To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures;

To provide for the Punishment of counterfeiting the Securities and current Coin of the United States;

To establish Post Offices and Post Roads;

To promote the Progress of Science and useful Arts, by securing for limited Times to Authors and Inventors the exclusive Right to their respective Writings and Discoveries;

As you can see, THE CONGRESS, not the Federal Reserve System, “shall have the Power to lay and collect Taxes, Duties, Imposts (which means taxes) and Excises” (taxes on consumer goods). Article 1 Section 8 says THE CONGRESS, not an organization called the Federal Reserve, is to coin Money, regulate the Value thereof, and of foreign Coin.”

When the people of America want to change the Constitution, how do they do it?

Bank of Cyprus depositors prepare for share-sale blow

Bailed-in Bank of Cyprus depositors prepare for share-sale blow http://www.ekathimerini.com/4dcgi/_w_articles_wsite2_1_04/07/2014_541099 By Georgios Georgiou and Nikos Chrysoloras Less than a year after the conversion of almost half their deposits over 100,000 euros ($136,000) into equity, Bank of Cyprus Pcl shareholders face another potential blow as the lender weighs a stock sale. The board of directors of the Mediterranean nation’s biggest bank convenes for a second time in two weeks on Friday to decide on a capital increase of at least 1 billion euros, following an ultimatum issued on July 1 by the governor of the central bank, Chrystalla Georghadji. Shareholders fret their stakes will be diluted, especially if the stock is sold at a low price and they lack the time to gather enough cash to participate in the offering, said a senior Bank of Cyprus official who asked not be identified because the discussions with investors are private.

Irving Picard (left), the trustee administering the Madoff estate, and Judge Jed Rakoff.

Judge Denies Madoff Trustee Recovery of Foreign Transfers

Mark Hamblett, New York Law Journal

July 8, 2014    |

http://www.newyorklawjournal.com/id=1202662171402/Judge-Denies-Madoff-Trustee-Recovery-of-Foreign-Transfers

Transfers made abroad between a foreign transferor and a foreign transferee cannot be recovered by the trustee administering the estate of Bernard L. Madoff Investment Securities, a federal judge has ruled.

Dealing a win to foreign banks and investment service providers, Southern District Judge Jed Rakoff (See Profile) held that the recovery provision of the Bankruptcy Code, §550(a)(2), is subject to the same limits on the extraterritorial reach of U.S. laws that apply to securities transactions and other federal laws under Morrison v. Nat'l Australia Bank Ltd., 130 S.Ct. 2869 (2010).

Export-Import Bank: Overview and Reauthorization Issues

Export-Import Bank: Overview and Reauthorization Issues

The Looming Foreclosure Crisis: the Fed Runs Out of Bullets

OpEdNews Op Eds 7/7/2014 at 20:34:16 The Looming Foreclosure Crisis: As the Fed Runs Out of Bullets, Local Governments Are Stepping In By Ellen Brown (about the author)     View Ratings | Rate It Headlined to H1 7/7/14

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The underwater mortgage crisis by mydolr.com
Mortgage debt overhang from the housing bust has meant lack of middle-class spending power and consumer demand, preventing the economy from growing. The problem might be fixed by a new approach from the Fed. But if the Fed won't act, counties will, as seen in the latest developments on eminent domain and litigation over MERS.
Former Assistant Treasury Secretary Paul Craig Roberts wrote on June 25^th that real US GDP growth for the first quarter of 2014 was a negative 2.9%, off by 5.5% from the positive 2.6% predicted by economists. If the second quarter also shows a decline, the US will officially be in recession. That means not only fiscal policy (government deficit spending) but monetary policy (unprecedented quantitative easing) will have failed. The Federal Reserve is out of bullets.
Or is it? Perhaps it is just aiming at the wrong target.
The Fed's massive quantitative easing program was ostensibly designed to lower mortgage interest rates, stimulating the economy. And rates have indeed been lowered -- for banks. But the form of QE the Fed has engaged in -- creating money on a computer screen and trading it for assets on bank balance sheets -- has not delivered money where it needs to go: into the pockets of consumers, who create the demand that drives productivity.

Wanta! Black Swan, White Hat

AMI: "Fourth" of July message, 2014

Dear Friends of the American Monetary Institute,
We send you our annual 4th of July message in the hope that you have not become too discouraged with the recent acts against our nation, such as insane "Supreme" Court decisions, which we regard as a kind of slow moving coup de'etat.A happy Fourth to you,
Sincerely,
Stephen Zarlenga
Director,

AMI

A July 4th message to friends of the American Monetary Institute,

Dear Fellow Americans, and friends around the Earth,
This 4th of July as we proudly celebrate our declaration of independence from the tyranny of a mad Brit King, lets remember and take courage from the victory a small group of dedicated, courageous men and women achieved against the world's most powerful military of their time.

It was a victory that appeared extremely improbable at best, as they pledged their lives to fight for its success. And as events and battles were fought, the possibility of a favorable outcome grew even smaller. But at the right moment, help from our ally France turned the tide and the British were defeated.

Defeated militarily, but not monetarily. For soon after the Constitution was ratified, in 1791 the 1st Bank of the United States, a non governmental privately owned and privately controlled central bank was put through Congress by Treasury Secretary Alexander Hamilton, modeled on the private Bank of England. The gang around that bank were more dangerous than King George the 3rd; and the Hamilton people thereby insinuated into the New World forces representing the most evolved secular form that evil had attained in the Old World - a privately controlled Central Bank, based on using banker debt for money, instead of government issued money. Thanks a lot Hamilton!

Thomas Paine, Father of the Revolution commented on his return from France, that a "faction operating in disguise" had arisen to promote that bank!
Jefferson fought the bank, helping to bring it down and Burr killed Hamilton over public insults; (Thank you Burr!) but banker issued money had gained a foothold in America. It's still here, in control of our monetary system. It's the root cause of most of our social and economic problems. Whenever it caused crises in the past, our government had to come to the rescue. It's latest atrocity is the current monetary, banking and economic crisis, which has taken the entire world economy down into depression, and is harming the lives of billions of people in the process.
It must end now! 

WHAT IS FIAT CURRENCY? WHAT IS MONEY?

WHAT IS FIAT CURRENCY? WHAT IS MONEY?
PART 2

 

By Marilyn MacGruder Barnewall
July 6, 2014
NewsWithViews.com

[NOTE: For those who will react to this article by commenting on alternative currencies like Bit Coin, please read my News With Views article on that topic here. Almost everything I predicted about how Bit Coin could be brought down or controlled by the federal government has occurred since the article was written.]

It’s important for you to know these things because as long as you don’t know them, you can be manipulated by those who do not have your interest – or that of America – at heart.

Hopefully, you realize the reason the United States is in such dire economic straits is largely because the people of America have enabled corruption at high levels. We, the people, did not take our responsibilities as a free society seriously and preferred television and other forms of entertainment to learning what we need to know to make sure those we elect to represent them are doing their job – rather than stealing from them.

First, the traditional definition of fiat currency – a paper currency with no value unless backed by something with a defined value, like precious metals. Paper currency that is not backed by something of value is… worthless. I disagree with the traditional definition because the currency of the United States (and other nations, too) is backed by the taxpayers. As long as taxpayers can be put in prison for not paying their taxes, paper currency is backed by the tyrannical threat of government actions against taxpayers.

Resolving Globally Active, Systemically Important, Financial Institutions

Joint Report issued by the Bank of England and FDIC

How collaborative credit can empower local sovereignty

How collaborative credit can heal – rather than just disrupt – capitalism

Collaborative credit systems such as time banks can help bring about positive transformation within the economy

http://www.theguardian.com/media-network/media-network-blog/2014/jul/03/collaborative-credit-heal-capitalism

Collaborative credit isn’t scarce like conventional currencies, and doesn’t come with interest demands. Photograph: Simon Cooper/PA

The payments industry is awash with talk of disruption. Paypal may soon seem just a minor splash compared with the tidal wave of mobile payment apps and cryptographic currencies. Already more money is being transacted around the world each day by bitcoin than by Western Union. Cryptocurrencies, and specifically the distributed ledgers that maintain them, are a disruptive technology, in the classic sense of disruptive technologies that begin by appealing to niche markets but have the capacity to scale rapidly and make some of the products and services of incumbents less attractive. The current talk is about disruption, and as such, it's fundamentally misguided. We must focus on positive transformation of the relationship between banking and the economy. About 97% of money is created by private bank lending, which comes with interest. The amount owed to banks (the amount borrowed plus the interest) is always more than the amount borrowed, and an increase in velocity of the flow of money can't address this fundamental contradiction.

TTIP documents to be made public after EU court ruling

TTIP documents could be made public after EU court ruling

Published: 04/07/2014 - 08:03

http://www.euractiv.com/sections/euro-finance/ttip-documents-could-be-made-public-after-eu-court-ruling-303288

Sophie in't Veld's victory at the European Court of Justice could open the door for more public access to TTIP documents. April 2012. [European Parliament/Flickr]

European Union documents relating to the EU-US trade deal, the Transatlantic Trade and Investment Partnership (TTIP), could be made public after a European Court of Justice ruling yesterday (3 July).

TTIP is currently being negotiated between the EU and US. It will be the biggest bilateral trade deal in history if completed, and covers a wide range of goods and services. The sixth rounds of talks are set to start this month.

132 Nations Want Out of The Dry Rot Banking Cartel

132 Nations Want Out of The Rothschild Banking Cartel

http://www.secretsofthefed.com/132-nations-want-rothschild-banking-cartel/

Just in case you haven’t been keeping up with the ‘tin-foil’ hat conspiracies, increasingly proven to be true, the Federal Reserve Bank of New York, is the center of a secret global economy that has bailed out American International Group Inc., huge insurance companies like AIG, Goldman Sachs Group Inc., Merrill Lynch & Co., J.P. Morgan,Societe Generale and Deutsche Bank AG, among others.

The secret cabal’s control over international markets is becoming less of a mystery as increasing numbers of markets reveal themselves so obviously to be fixed. The cabal cheats the 99 percent with Libor interest rates, foreign exchanges, and gold, silver, and platinum price fixing.

EU auditors: Europe's bank stress tests were unreliable

Europe's bank stress tests were unreliable, EU auditors say

http://www.euractiv.com/sections/euro-finance/europes-bank-stress-tests-were-unreliable-eu-auditors-say-303257

Published: 03/07/2014 - 08:39

The European Banking Authority's 2011 stress tests were unreliable, said the European Court of Auditors. [EBA]

The European Union’s banking supervisor did not have the staff or powers to successfully stress-test EU banks’ resilience to financial shocks, according to a European Court of Auditors’ report published yesterday (2 July).

The 2011 tests, conducted by the European Banking Authority (EBA) shortly after it was set up, were one of a series of measures to stabilise the banking sector in the aftermath of the financial crisis. They simulated disruptive market conditions to estimate how a sample of banks would react. Eight out of 90 banks failed the test—five in Spain, two in Greece and one in Austria.

The report said, “It [the EBA] had neither the staff nor the necessary mandate to ensure the reliability of the stress test exercise.”

Commission urged to fire auditors PwC

Commission urged to fire auditors PwC from bank transparency study

Published: 02/07/2014 - 15:57 | Updated: 02/07/2014 - 15:58

http://www.euractiv.com/sections/euro-finance/commission-urged-fire-pwc-auditors-bank-transparency-study-303243?utm_source=EurActiv+Newsletter&utm_campaign=1ef603bfb8-newsletter_daily_update&utm_medium=email&utm_term=0_bab5f0ea4e-1ef603bfb8-245523965

Internal Market Commissioner Michel Barnier was told to fire PwC from the country by country reporting impact assessment. January 2010. [European Parliament/Flickr]

Development aid organisations today (2 July) called on the European Commission to oust auditors PwC from an impact study on country reporting for EU banks, saying the company has lobbied against the legislation and therefore has a conflict of interest.