Bank Changes Dec 25/13
this is from Eagle 1.. Sift through his comments and be sure to read what his contacts at the IMF said in response to his question about the RV before the end of this month.
Without repeating a lot of what I said, the objective in the banking system was to enable daily adjustments in currency values while tracking the asset backing of each nation which would become the basis of each currency's valuation.
The functions incorporated in Babylon II make the software for Obamacare pale by comparison.
The new banking software was essential for compliance with the Basel III protocols. Those protocols require all participating banks to raise their asset base to a minimum of 10% of overall liabilities.
That sounds nuts when you think about it but when you realize that banks have been operating at a level of 5% since 1999 during the Clinton administration -- a level incidentally which resulted in the 2007-2008 crash of so many banks -- you can understand that greed and the desire for increased profits motivated that downward shift in 1999.
Former Fed Chairman, Paul Volcker, strenuously objected to the lowering of those standards in 1999, along with allowing banks to get into investment strategies for which they were not designed (or prepared) such as hedge funds, derivatives trading, etc., etc.
The Volcker Rule, which was just added to the Dodd-Frank regulations in the past few weeks, is an attempt to repair the cause of the banking debacle.
Even the 10% asset level, in my personal opinion, puts banks at continued risk -- especially when you have the kind of exploded economy we've been suffering through during the past five years.
A quick example, if you don't mind. When I was the president of Union Bond & Trust Company in the 80's, Hong Kong-Shanghai Bank (now HSBC) offered me $50 Million for one year at 7%, payable in arrears. At the time, it meant I could lend out $500 Million during that year. At prevailing interest rates, I could easily make $50 Million and more during the year, return the $50 Million loan at year's end plus the seven percent and be fat and happy.
The catch was that if any of my bank officers made risky loans, I could get hung out to dry and be liable for those funds without the ability to repay in a timely fashion.
We do business locally with Yakima Federal Savings & Loan for our ministry. They are easily the strongest banking institution in the northwest and one of the strongest in the nation. They keep their asset base at around 27% (and at the moment are nearing 30%). By comparison, this past year Bank of America was sanctioned by the FDIC because their asset level fell to 4.57%.
You get the picture!
With the Global Currency Reset in the offing, the implementation of the Volcker Rule is highly significant.
The major banks have been required to implement this rule immediately, while smaller banks will have until 2015 to get out of the various investment portfolios they are involved with.
The chief concern, and the primary logic behind the implementation of this rule, is that with the GCR taking place and many people holding different currencies, among which are the IQD and the VND, there will be a sudden influx of cash into the banks and the banking system as a whole.
Banks will suddenly have multiplied millions of dollars on deposit that they can turn around and reinvest into legitimate banking operations.
The Volcker Rule prevents banks from using those funds in riskier endeavors and putting depositors' monies at risk.
Many of you will remember the "false flag" events that preceded Kuwait's revalue 20 years ago and China's revalue more recently. In each case, just prior to the revaluation of their currencies, notices were published which were designed to deflect any immediate attention to what was actually occurring.
China made the statement that they weren't going to revalue their currency "at all" and 24 hours later did just that! With Kuwait, a notice was sent out by the Emir that they were postponing the revalue of their currency to some indefinite date. 24 hours later the Kuwaiti Dinar was revalued.
Whether we've just seen a "false flag" with regard to Iraq or the GCR is a matter for some discussion. All of the information leading up to yesterday indicated that the GCR would go "live" at 5:50 PM Eastern.
Throughout the day we watched events unfold leading up to it. At the last minute, the process was halted and the delay was attributed (by some sources) as pushing it right up to Iraq's induction into the WTO. Whether there is any validity in that report is questionable.
In a conversation this morning with a representative from the WTO, I posed the question as to whether we were going to get to see this event yet this year or whether it would get pushed off to mid-January (most likely January 21st).
Apparently that question was also on this representative's mind and he said that he had put that same question to three of the central bankers who are part of the GCR process. Each of them in succession swore up and down that the GCR absolutely HAD TO HAPPEN before the end of 2013.
We shall see, won't we?