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More International Banking Updates

Bank for International Settlements 25/01/2021:

  • The euro-denominated, open-ended green bond fund for central banks builds on the success of the first, US dollar-denominated green bond fund

  • The two funds belong to the BIS's green bond fund initiative and invest in high-quality bonds that comply with international green standards and finance environmentally friendly projects

  • The BIS and participating central banks are strongly committed to supporting environmentally responsible investment practices


Joachim Wuermeling: Bundesbank and fintech players in the digital financial ecosystem:

"Now, you might be wondering: "what's in it for me?" Yes, central banks are relevant to digital innovation in finance – my first point. Yes, digital innovation can foster financial stability – my second point. And yes, central banks are innovators themselves – my third point.

Beyond this, I hope you all agree that digitalisation is not just about making money; it is about making the world a better place, too. For me as a central banker, a better world means a financial system which is sufficiently and sustainably stable.

I am convinced that digital innovation will make us better able contain the threats and vulnerabilities in the financial system. All of you can contribute to this – and I very much hope you will!

The transformation of the financial system may not only make finance more digital, but also more stable and more resilient.

To that end, cooperation between central banks as Bundesbank and the fintech community is key. We are interested in establishing close ties to the digital financial ecosystem.

We might come from different worlds. But we can – and should – learn from each other and work together. Let us bring together stability and innovation!

I am looking forward to an inspiring event today, with insightful panel discussions and many shared ideas. And I hope to see some of you at InnoWerk soon!"

Translation: Track, trace, consolidate, control. Why have we not been asked democratically of we want the banks to take this action? Because they don't answer to our governments, we answer to them.


Jens Weidmann: What role should central banks play in combating climate change?

"Obviously, central banks are not commercial banks. But our financial assets can be just as exposed to financial risk as those of commercial banks. In this regard, central banks should practise what they preach. Hence, I believe that central banks should factor climate-related financial risks into their risk management. That should also apply to financial risks arising from monetary policy operations."

Central banks are definitely not commercial banks, they're cartels and mafias.


Ready, steady, go? – Results of the third BIS survey on central bank digital currency, by Codruta Boar and Andreas Wehrli

Monetary and Economic Department January 2021:

"The year 2020 saw the official launch of a retail CBDC, and it is likely that more will be rolled out in the coming years. Most central banks are now exploring the case for CBDCs in some way and, overall, the survey indicates a continuous move from purely conceptual research to experimentation and pilot projects. Yet despite these developments, a widespread roll out of CBDCs still seems some way off. Interest and work on CBDCs is global, but motivations for their potential issuance are shaped by local circumstances. Financial inclusion remains a key motivation across EMDEs and a top priority for CBDC development. In AEs, the perceived need for issuance is generally lower and the main areas of interest are related to the efficiency and safety of payments. Precautions to ensure the general public’s continued access to central bank money – related to the gradual decline of cash for transactions – is a recurring theme. International policy coordination on CBDCs is set to intensify over the coming years as central banks thoroughly review the cross-border and economic implications of issuing digital currencies and technical design choices and operational complexities continue to present practical challenges. When it comes to cryptocurrencies, central banks continue to see these as niche products with no widespread use as a means of payment. Conversely, developments in stablecoins are closely watched given their potential for rapid adoption by consumers."


Permissioned distributed ledgers and the governance of money, by Raphael Auer, Cyril Monnet and Hyun Song Shin

Monetary and Economic Department January 2021:

"We explore the economics and optimal design of "permissioned" distributed ledger technology (DLT) in a credit economy. Designated validators verify transactions and update the ledger at a cost that is derived from a supermajority voting rule, thus giving rise to a public good provision game. Without giving proper incentives to validators, however, their records cannot be trusted because they cannot commit to verifying trades and they can accept bribes to incorrectly validate histories. Both frictions challenge the integrity of the ledger on which credit transactions rely. In this context, we examine the conditions under which the process of permissioned validation supports decentralized exchange as an equilibrium, and analyze the optimal design of the trade and validation mechanisms. We solve for the optimal fees, number of validators, supermajority threshold and transaction size. A stronger consensus mechanism requires higher rents be paid to validators. Our results suggest that a centralized ledger is likely to be superior, unless weaknesses in the rule of law and contract enforcement necessitate a decentralized ledger."


The IMF team up with WEF to discuss the green economy we have never voted on.

Aren't we lucky the vulcher cpaitalists who have accumulated all the wealth during this pandemic are now looking to consolidate and control our lives via a green economy? Pssst.... this is the part where WE'RE tracked, traced, monitored, controlled and spied on under the guise of watching OUR CO2 output. Wakey wakey!


IMF - A New Bretton Woods:

The Managing Director virtually participated in a wide-ranging conversation hosted by Wellesley College where she made an appeal for a new Bretton Woods moment and outlined the role of the IMF and other international institutions.

"The world today has three priorities: Bring the health crisis to an end everywhere; transform, recover and transform the economy for the future, not replicate the economy of yesterday; and prevent divergence between rich and poor, rich and poor people, rich and poor countries," she said during the event. "Every institution has to find its place vis-à-vis these priorities and deliver its utmost best to address them, and for me that is our new Bretton Woods moment to step up to what is expected from us in this crisis."

We're not going back to the way it was. The most wealthy institutions are taking the lead, where we won't be allowed to work in the industries we want, only the ones the IMF deem acceptable. Fantastic. Who the do these people think they are?!


IMF- How to make the US more fair:

"Workers and their families on the wrong side of the many US economic disparities are there for several reasons—including a stubborn reliance by policymakers on markets to do the work of government and the racism and sexism, sometimes written into law, that blind policymakers to injustice and to economic sense.

This article will identify specific causes of economic inequality in the United States and then explain how to address them."

Funny how government and international banking institutions policies aren't mentioned.


Bank of England convenes members of the public and businesses to join the climate change debate:

Climate change continues to be a key strategic priority for the Bank, which has an ambitious work programme that ranges from assessing climate-related financial risks of the largest UK banks and insurers through to working internationally with the Network for Greening the Financial System, a network of more than 80 central banks. Its objective is to build a UK financial system that is resilient to the risks from climate change and supportive of the transition to a net-zero economy.

Sarah Breeden, the Bank’s Executive Director Sponsor for climate change, has led two virtual events this month designed to increase understanding and engagement on the issue:

  • Business leaders event on 14 January 2021, was attended by more than 650 businesses who are contacts of the Bank’s network of Agents across the UK; and

  • Citizens’ Panel event on 26 January 2021, which saw around 70 members of the Bank’s Citizens’ Panels participate in a series of small discussion sessions and a Q&A with Bank staff.


Summary - the banks and international monetary mafias have their agenda and are going full steam ahead. Our governments will do as their told. "Build Back Better" - do me a favour. It should be "Building the Economic Prison."

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