Federal Reserve Board finally adopts Basel III requirement in special closed meeting
Jul 02, 2013
In September of 2010 the world met in Basel, Switzerland and agreed to adopt new measures to ensure bank stability. This included holding 7% of their assets in reserve, instead of the (US) 2% reserves.
Nations had until January 1, 2013 to implement this, though some requirements would be phased in over the next few years. Most of the nations complied, but the Federal Reserve dragged their feet and remained non-compliant, even though they had agreed to implement these requirements.
Now that Iraq has come out of Chapter VII (June 27), and the dinar is ready to revalue, the Federal Reserve has finally been forced to comply with Basel III. So they required a special meeting with the board on July 1, 2013 to comply.
Today, July 2, Fed Chairman Bernanke read a prepared statement declaring that the board members unanimously approved the agreements of Basel III. You can listen to it here:
Bernanke did not look happy, but he made it sound like they were “developing” this proposal for the past year and finally approved it after getting it right. He says this will strengthen the global financial system, as if to say, “we were in agreement all along.”
Really? C’mon, Sir. The Basel III requirement was developed and completed in September 2010. You and the board have been procrastinating because you don’t want to force the big banks to hold back 7% of their reserves which they might otherwise use on derivatives contracts in the Casino Banking Department.
Well, at least they were finally forced to do it.
In another report by someone called “Mountain Goat,” he says that he asked his Iraqi contact why there was a hold up in the revaluation of the dinar. His Iraq contact said,
“What hold up? said my contact. We are just fine over here. All is well over here. The currency’s new rate has been activated mid Monday. It is $3.44 now as shown on posters in the windows at the banks….”
So I asked myself...If it is activated in Iraq on Monday then why have we not seen it yet in the USA?
I don't know said my Iraq contact. Thus I made yet another call to my contact in the IMF. He is telling me that any country that is not fully Basil III compliant will cause a delay in activation until the final requirements are ironed out.
The USA is one of these countries. I was told this issue is now resolved (he told me how but I will not repeat it since you would not like the politics involved). I also agreed not to talk about it.
The important part is the USA should see activation sometime during the next couple days. END QUOTE.
Keep in mind that this is just one man’s report. If the banks are indeed posting an exchange rate of $3.44, others should soon report this as well. So far I have only seen one report of this, so it remains to be confirmed. On the other hand, the Fed's special meeting adopting Basel III suggests something big is happening.
Some are saying that the US had a waiver on Basel III compliance until 2019. If that is so, then the Federal Reserve board must have decided that they did not like the consequences of that waiver and decided to comply right away. If the dinar report from Iraq is true, then it would seem that the Federal Reserve did not want to be left out of all the new cash that is being created by this dinar revaluation. I mean, if the big banks in other nations received big cash injections, while the US banks remained near bankrupt, it would leave the US banks at a huge disadvantage in the world financial markets.
So it appears that someone has forced the Federal Reserve to comply with Basel III. Who is big enough to do that? China comes to mind. Or rather, the kings of the east, who have been pushing for asset-backed currencies for many years.