Re: Who or what keeps central banks “honest”
Interesting “big picture” questions.
Who or what keeps central banks “honest”
They aren’t honest. Maybe the question should be who manages, regulates and controls them?
The central banking cartel members operate under different circumstances and with unequal power. For example, The Peoples Bank of China is owned and operated by China’s government. There are a number of private banks in China but the issuance and control of their currency is a government function. This enables China to avoid a national debt since the federal government never has to borrow any money from private banks.
On the other hand, the Federal Reserve is privately owned by a small group of international bankers, including Rockefeller, Warburgs and the big kahuna – the House of Rothschild. The Fed is managed through the New York branch, which accounts for over 50% of the reported stock. The New York fed is dominated by J.P. Morgan Chase, Citi Bank, Goldman Sacks, etc.
The BIS (Bank of International Settlements) and the IMF regulate the network of central banks. The BIS is owned mostly by the central banks of the west with China gaining a stronger voice. China complies with most of the BIS rules and provisions – but not all. They ignore the rules when they think it detracts from their sovereignty and best interests.
For example, they protect their currency and make demands on most large corporations that want to do business with China. For example, Japan wants to export more cars to China, but China is requiring some factories be built in China – and they want to be partners of those plants. The did the same thing with GM and that’s why GM will build plants in China instead of the U.S. Simply put, they believe in fair trade (by their definition) and not free trade (by our definition).
Most of the nations that use a private central bank, are being pulled together (consolidated) under the BIS – IMF. For example the US, UK (the Bank of England was nationalized but the creation of money is a private function through the big banks), Germany, France, Spain, etc.
This is creating a rift as nations with their own central banks want to keep their financial sovereignty. I wish the U.S. were one of them.
China seems to be gaining power in the IMF-BIS while doing so on their terms. They have a greater say in what we do in the U.S. while we have no say in what they do. Simultaneously, I think China is building a parallel system. They can invite the members they want (SCO) to cooperate under a system that allows greater autonomy for their members.