BiS

Or bullshit?

Most of us would agree that some form of currency is a good thing. After all it’s a royal pain in the ass to trade a few chickens for some carpentry work.

The Medici family provided a vital service long ago. Being able to deposit money in one location and use it in another location is a big advance for humanity. Bankers, the people that provide this service, have always profited from it. After all, everyone should be paid for the work they do (even if it doesn’t seem like work).

But have bankers excessively profited? Have they used their wealth and influence for good? Certainly the Medici family were patrons of the arts (and some would claim this was used as propaganda). The Medici family used their wealth to gain political power. Should banking and politics be kept separate?

Central banks are a special part of the banking system. The bankers to the bankers. The primary mission of central banks is to maintain monetary stability. In general they like a low steady inflation rate (which is nice and profitable for them and generally keeps the population happy). But inflation is spreading like wildfire since Biden took office (to be fair many of the problems have been in motion for a long time, but the Biden administration kicked the problems into high gear and accelerated them). Inflation is raging from almost 17% in Latvia to more than 73% in Turkey. The USA problems of inflation around 10% seem relatively minor, we should be thankful we live in an economically powerful nation.

The BiS (Bank for International Settlements) is the bank to the Central Banks (are you confused yet at all the levels of banking?). This important bank, that you’ve probably never heard of, was established in 1930. The BiS had a tarnished start with it’s involvement in Nazi looting. It’s enlightening that the British government would be openly opposing the Germans in 1939 and yet the Bank of England working with the BiS would give the Germans twenty three tons of gold (held in England but looted from Czechoslovakia).

Perhaps what should concern us the most about the BiS is how secretive they are. Do we really want powerful organizations operating in secrecy? BiS is located in Basel, Switzerland with their land and buildings granted legal status equivalent to diplomatic immunity of a nation. The police literally can’t enter without being invited in.

The BiS and all Central Banks are opposed to unregulated crypto currency.

Takeaway point: my opinion is that the establishment does not want to lose control. Thus crypto currency is risky because of the threat it poses to fiat currency. Threats can be dealt with most brutally, don’t expect the establishment to pull any punches this is a fight to the death. It wouldn’t surprise me at all if crypto currencies became flat out illegal soon.

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