VOODOO ECONOMICS: Eschatological Banking & The Cult of Crisis

Source – gizadeathstar.com

  • “…The New Green Deal initiative and the Climate Change zealots centred at the World Economic Forum (“WEF”) as this reduces travel and carbon footprints…It certainly seems that the WEF’s Great Reset is the marketing wing of Basel IV and aims to reinforce the draconian impact of its regulation with fake ‘social justice’ issues by pressuring businesses to sign up to its edicts..such as sustainability targets; gender and race ‘levelling’ data and more under its call for a ‘Global Commons’….This edges us ever closer to corporate communism and with less manufacturing a greater reliance on the state and fat cat technocratic corps. Basel IV is really the ‘Fourth Industrial Revolution”


This blog is in harmony with Joseph’s examination of the post-war Axis Elite and their corporate-fascist signature, elucidated in his book, Third Way: The Nazi International, European Union, and Corporate Fascism and its continuing death grip on our lives and a little-known, banking accord decreed by, you guessed it, the high priests of the Tower of Basel aka the ‘Bank of International Settlements” (“BIS”).

The exploits of the BIS have also been well documented by Adam Lebor in his book, Tower of Basel: The Shadowy History of the Secret Bank that Runs the World – which is beyond the scope of this blog to recount except to emphasise three points that:

1.) During WW2 the BIS was mainly comprised of Nazi’s.

2.) The BIS is headquartered in Switzerland in a “Tower of Babel” styled building which may be interpreted as the moniker of a famous banking family’s Babylonian origins and even its end scenario intention; and

3.) Is immune from prosecution and is above the law.

In more recent years it has tried to clean its image – it sets banking regulation standards worldwide and has over 62 countries signed up to its banking accords that are designed to ensure ‘stability’ and making banking ‘safe’ for its customers despite doing nothing to stop the 2008 financial collapse.  In response to this criticism, it created new banking accords to regulate the big banks called Basel III and more recently, Basel IV. These banking accords are meant to be sets of voluntary regulations or standards and European in scope.  However, in reality its influence and clout is international and Basel IV regulations, according to some, will almost certainly become binding in EU Law[1].

What is Basel IV?

Basel IV are prohibitive regulations and transparency reporting measures that the BIS is imposing on banks that are due to take effect from the new revised date of Jan 2023.  The implication though is for these regulations to be adopted worldwide because if banks refuse to sign up, then they – and even whole countries – could be downgraded. Of course, they are supposed to be voluntary but in reality they are coercive, a tactic we’ve seen doled out to the UK when it voted for Brexit and was punished by losing its AAA credit rating.

The Basel IV accords state that in order for banks to stop the repeat of the 2008 banking crisis, banks will need far higher capital reserves and less exposure to Risk Weighted Assets (‘RWA’s) on their balance sheets. Initially, full implementation was due in January 2022 but due to its onerous reach, it has been extended to January 2023.

What is a Risk Weighted Asset?

A risk weighted asset is a loan and represents Tier 3 of a bank’s capital and can be considered a debt-based business model.

What is a bank’s 3 Tiered banking model?

Envisage it like a wedding cake that’s pyramidal with 3 steps.  Tier 1 at the top is hard assets or working capital and represents the smallest tier. Tier 2, a larger tier than tier 1 but smaller than tier 3 represents trade with other hedge funds and banking professionals who only have access to this tier.  At the bottom is Tier 3 and represents the peasants – anyone who needs business loans or mortgages etc has access to this tier.

How does Tier 3, RWA’s and Basel IV all connect? 

Tier 3 represents Risk Weighted Assets. If I loan someone $10 who is unemployed my risk exposure is 100%; if I loan someone who owns a business $10 my risk exposure is 50%; if I loan someone who is employed $10 my risk exposure is only 25%.  Sounds good…right?  An end to debt based products and ensuring banks don’t fail again is good, surely? Admittedly, it’s a seductive premise unless you’re paying attention…

Basel IV Ramifications

As Basel IV is dictating that banks must decrease their exposure to risk in this manner, this may mean that loans to businesses and anyone running a business (even for a mortgage, say) will have much less chance of receiving lending help[2].

Many banks will not be able to limit or reduce their exposure enough so will be fined and downgraded out of existence thus increasing centralisation and concentrating power into an ever increasing smaller circle.

A study by Copenhagen Economics, estimates that the impact of Basel IV may reduce the credit capacity of European banks by €2,900 Bn. Japan and Europe think that it could increase their capital requirements by a whopping 70%[3]. Is this why, in recent times, we have seen many countries repatriate their gold supplies as it’s a hard asset?  The CEO of Deutsche Bank has described Basel IV as ‘humongously draconian’ and an ‘eschatological event’[4] and should give an indication of its far reaching import for the entire trajectory of mankind.

We can deduce from this that it will be virtually impossible to run a business or start one and get a loan. And if loans are in shorter supply will anyone qualify for one?  Could it spell the end of owned housing?  Under this model, most people will be employed but if there is less businesses then by whom will they be employed?  The state? Mega-corporations? What will happen to small businesses already in existence?  Will Universal Credit be introduced due to the fact there will be less employers?  Are we seeing the emergence of a corporate-communist social system as speculated by Joseph Farrell  in his Third Way book?

Covid as an undercover executioner of RWAs

The Tower of Basel book asks the salient question – how does the BIS ever shake off its seedy and fascist inception and reputation?  It was heavily criticised for not doing anything to prevent and/or mitigate the banking crisis in 2008 and indeed contributed to it by using the disastrous Dr Li’s formula[5] that arguably led to the crisis (details of Dr Li can be found in Joseph’s book: ‘Babylon’s Banksters’). The BIS, despite its malfeasance thinks it is best placed to set new banking accords to offset any further disasters, thus its rational for Basel 3 and now Basel 4. Seems to me that it may have been merely watching the Hegelian dominoes fall: sponsor a doomed-to-fail economic equation, allow the banks to fail and then provide a solution.

But the problem remains, how does the BIS keep the collapse of Tier 3 society (that’s us plebs) in the shade from its draconian banking regulations and so offset pushback?  You would manufacture another crisis that targets SMEs.  You clean the system of what you believe to be the dead wood or industries that are no longer serving your needs with a manufactured crisis that forces all lenders to reduce their RWAs and no one will link it to Basel IV as that comes into effect in Jan 2023. So Covid came, like a plague of locusts, to clear the system of RWAs in readiness for Basel IV. That way, the peasants are unlikely to connect the two as being related and the eschatological event was pushed back in time to 2020 and 2021.

Basel III, Transportation & Climate

But why has the leisure and tourism industry been targeted in particular?  And there are many signs this is the case, as according to the Hellenic News there has been a ‘forced hiatus of shipping loans due to Basel III & IV’[6].  Indeed, similar has been speculated with regard to the Aviation industry[7] as it will ‘“tighten the noose” around the banks providing aviation financing’[8] according to one lawyer at HK Law.  To understand why the transport industry is hit so much by Basel IV, first we must look at the previous Basel III regulations.  These regulations curtailed cross-border finance which is loans issued from other countries mostly by Investment Banks acting as a third party in that country which mitigates the risk of political and currency exposure in the country that one wants to do business in. It also allows businesses to compete on the global stage in a logistical sense and so will also hit importers and exporters of goods as well other forms of travel due to its inherent cross-border nature of business.

This naturally dovetails into the New Green Deal initiative and the Climate Change zealots centred at the World Economic Forum (“WEF”) as this reduces travel and carbon footprints. Indeed, in this article[9] we witness the WEF pushing the idea that cross-border financing is ‘particularly volatile’ and instead favours a ‘multi-national’ model (read corporate-state actor). It certainly seems that the WEF’s Great Reset is the marketing wing of Basel IV and aims to reinforce the draconian impact of its regulation with fake ‘social justice’ issues by pressuring businesses to sign up to its edicts. Namely, onerous transparency reporting metrics, not just financial, such as sustainability targets; gender and race ‘levelling’ data and more under its call for a ‘Global Commons’.  This will obviously ensure that not just SMEs fail but also specialised manufacturing businesses that use highly skilled and mostly male labour will also eventually fail.  This edges us ever closer to corporate communism and with less manufacturing a greater reliance on the state and fat cat technocratic corps. Basel IV is really the ‘Fourth Industrial Revolution’.

Circumventing Basel IV – negotiation verses taking it black

Could Brexit be the UK response to Basel IV?  Was the issue of the ‘Level Playing Field’ that was alluded to in Brexit negotiations just recently between Boris Johnson and the Heads of the EU in direct relation to Basel IV?  The ‘Level Playing Field’ is a reference to the mechanism of calculation of an RWA employed by a country or a bank.  Indeed, there is some level of divergence here which creates a perceived unfairness in terms of adherence to the Basel accords. Which means the method you calculate a RWA is very much of international importance as it means the playing field might not be level.  It’s hard to tell if this was the real reason behind Brexit as the Withdrawal Agreement is quite an esoteric document (in particular see Article 150 – last paragraph), however, if we are to go by Bozo’s covid zealousness we can only surmise that he is fully onboard.  But and it’s a big but, from reading the Withdrawal Agreement and its ambiguous wording, it seems to suggest that the UK Supreme Court will have the final say in any disputes[10].  And there are signs that City Lawyers, Clifford Chance, have urged the House of Lords to use Brexit as an opportunity “opportunity to enable UK financial services to become more outward-facing and access new markets”… and… “regulators are appropriately equipped to oversee firms operating across borders”[11] along with the admittance that Brexit may fracture regulation[12].

We may infer that a negotiation then has taken place between the UK-EU over the last four years on this issue. Guess who didn’t negotiate with the Banksters of Basel?  Donald Trump!  It appears that Mr Trump was criticised by the Masters of Basel as he refused to send negotiators to the table and even kept them waiting, which they bemoaned delayed the Basel IV regulations, according to one publication[13]. In fact, it seems that Mr Trump decided to ignore the entire charade and take America’s balance sheet black, occulting its finances away from the beady eye of the data beast at Basel. During his term, Mr Trump signed off on FASAB 56.  The FASB and FASAB are the European and American accounting standards respectively, are essentially homogenous and feed into the Basel Banking Accords[14]. FASAB 56 is an amendment to FASAB that states that the US government can occult its balance sheet if it’s a matter of national security. Well, I certainly think that an eschatological event, such as Basel IV designed to cause financial disaster especially in relation to one of the largest economies on the earth, is certainly a national security concern for the American people – it could even topple the economy completely.  Tellingly, a vociferous proponent of Basel IV, Dan Tarullo, former member of the Board of Governors of the US Federal Reserve[15] resigned in the early days of Trump’s administration, which allowed Trump to ease the FASAB and Dodd-Frank reforms (which Tarullo implemented)[16] releasing the stranglehold on the US economy. So is it Basel pushing these regulations or is it the US Fed? On closer examination we may infer that Mr Tarullo may have had split loyalties.  The fact he had been a visiting Professor at the University of Basel, writing an ode to the BIS in his book ‘Banking on Basel’ and also being Bill Clinton’s personal representative at the G7[17] makes him a bit of a suspect character.

Epilogue is Prologue

Humpty Dumpty sat on the Tower wall, Humpty Dumpty had a great Fall.  There is a lot more to this sorry saga but for now, I will leave you to ponder my attempt at understanding this surrealist nightmare that we find ourselves in on planet clown as there are enough broken egg shells to piece together already.  You may disagree with my take on things or have things to add and that is welcomed – I am no financial expert. The above insights, however, do seem to be borne out by the financial news footnoted in this article.


(And with that meaty steak to chew on, I’ll only add my usual sign off:

See you on the flip side…)

[1] https://www.waterstones.com/book/basel-iv/stefan-roth/martin-neisen/9783527509188

[2] https://www.eulerhermes.com/en_global/news-insights/economic-insights/European-regulatory-changes-will-make-banks-less-willing-to-lend-to-SMEs.html

[3] https://www.smithhanley.com/2016/08/22/basel-iv-regulations/

[4] https://www.efinancialcareers.ie/news/2016/08/forget-brexit-will-basel-iv-kill-your-banking-job

[5] https://www.forbes.com/2009/05/07/gaussian-copula-david-x-li-opinions-columnists-risk-debt.html?sh=8d7c4971c7bb

[6] https://www.hellenicshippingnews.com/forced-hiatus-of-shipping-loan-sales/

[7] https://www.irishtimes.com/business/financial-services/new-banking-rules-could-spell-problems-for-aircraft-leasing-1.2848746

[8] https://www.hklaw.com/files/Uploads/Documents/Articles/2016AirfinanceJournal.pdf

[9] https://www.weforum.org/agenda/2015/05/how-has-international-banking-changed-since-the-financial-crisis

[10] https://gowlingwlg.com/en/insights-resources/articles/2020/retained-eu-law-a-practical-guide/

[11] https://www.cliffordchance.com/microsites/brexit-hub/briefings/brexit–the-future-of-financial-regulation-and-supervision/_jcr_content/parsystop/hubdownload/file.res/Brexit_the_future_of_financial_regulation_and_supervision.pdf

[12] The Government must not squander the opportunity to enable UK financial services to become more outward-facing and access new markets, and should ensure that the regulators are appropriately equipped to oversee firms operating across borders

[13] https://www.globalcapital.com/article/b124vt0z8lsrpd/end-of-basel-iv-waiting-on-trump-to-name-negotiators

[14] https://www.moodysanalytics.com/risk-perspectives-magazine/convergence-risk-finance-accounting-cecl/spotlight-cecl/ifrs-9-impairment-model-interaction-with-the-basel-framework

[15] https://philosophyclub.bg/banks-push-back-against-basels-surreal-plans/

[16] https://www.reuters.com/article/uk-usa-fed-tarullo-idUKKBN15P2CL

[17] https://hls.harvard.edu/faculty/directory/10881/Tarullo

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