During mid-August a member of the Bank of International Settlements (BIS) Advisory Committee on DERIVATIVES revealed: "There is a near-panic fight inside the BIS over derivatives. For large banks, the big attraction of derivatives is that they can be done 'off balance sheet' and, because of a loophole in the BIS Bank Capital Adequacy rules, banks do not need to set aside core capital against their off-balance-sheet derivatives exposures. This is the real reason for the explosive growth in the derivative 'trade'. BIS central banks, with one exception, are privately in a state of near panic", he said.

"We have looked at various means to control the risk, but a transaction on derivatives ... would be unenforceable ... So, the idea BIS has developed, is to introduce a regulation mandating banks bring 'on balance sheet' all their derivatives exposure within three years from a given date. The BIS experts calculate that this would allow an orderly winding-down of the huge exposures to some 10% or at most 20% of today's levels", he said.

"But there is one central bank which is adamantly resisting, that is the Bank of England and the Major government. Very simply, derivatives are the heart of today's role of the City of London as a global financial center, and the change would devastate their influence internationally."


This BIS expert1 clearly indicates that at least 80% to 90% of derivatives have nothing to do with the transactions concerning the physical economy, and are merely speculative (gambling) instruments. The reason that London is "adamantly resisting" regulation, indicates that the $800 Trillion annual turnover of derivatives is essential to hide the $800 Billion annual narco-dollar laundering, which the "City" and its subsidiaries depend on. i.e. the evil British Financial Empire is alive and well, it is behind the UN, IMF, WTO, and the World Bank (the Gang of Four). However it appears that it is in danger of becoming isolated if it is taking a stand against every BIS central bank in the world.

How Post-Industrial cannibalism of the physical economy affects the availability of WATER should interest every Australian. For water is the stuff of life. It is also the choke point for industrial and technological development.

The present power struggle which is going on in the USSR springs out of a concern that the virus of post-industrialism has deeply eroded living standards in Russia almost to a point of collapse of nation. The decline of the power of London is inevitable if nations such as China, Russia, Indonesia, Nigeria, Sudan, Brazil, ... are beginning to question the domination of global finance over them. The 'City's' answer is the rapid deployment of terrorist groups against those nations. Terrorism is funded by means of a tiny fraction of the narco-dollar laundering which is controlled by the 'City'.

The press will have us believe instead that Iran and to a lesser extent Lybia are the pariah nations supporting terrorism, when it is alarming to find that almost every terrorist organization has its headquarters in London. wandjl01.htm

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