The World of Money
TimeWatch Editorial
June 30, 2016
In the November 1983 issue of Harper Magazine,Edward Jay Epstein wrote an article entitled: “Ruling the World of Money.” He describes the fact that a number of men from select countries assemble in Basel, Switzerland, ten times a year for an important meeting.
“Carrying overnight bags and attaché cases, they discreetly check into the Euler Hotel, across from the railroad station. They have come to this sleepy city from places as disparate as Tokyo, London, and Washington, D.C., for the regular meeting of the most exclusive, secretive, and powerful supranational club in the world. The membership of this club is restricted to a handful of powerful men who determine daily the interest rate, the availability of credit, and the money supply of the banks in their own countries. They include the governors of the U.S. Federal Reserve, the Bank of England, the Bank of Japan, the Swiss National Bank, and the German Bundesbank.” Edward Jay Epstein, “Ruling the World of Money” November 1983 issue of Harper Magazine
The name of this exclusive club is the “Bank of International Settlements.” There is a permanent staff of about 300. That of course would include chauffeurs, chefs, guards, messengers, translators, secretaries, and researchers.
“THE Bank of International Settlements was originally established in May 1930 by bankers and diplomats of Europe and the United States to collect and disburse Germany's World War I reparation payments (hence its name). It was truly an extraordinary arrangement. Although the Bank of International Settlements was organized as a commercial bank with publicly held shares, its immunity from government interference - and taxes in both peace and war was guaranteed by an international treaty signed in The Hague in 1930. Although all its depositors are central banks, the BIS has made a profit on every transaction. And because it has been highly profitable, it has required no subsidy or aid from any government.” Edward Jay Epstein, “Ruling the World of Money” November 1983 issue of Harper Magazine
Clearly then, the unity of Europe is tied to a global connection that would be difficult to undo. Even if one of the nations involved decided at some point to disassociate themselves with the rest, the dissolving of the association would be so complex that the economic implications would be stunning. This will be true not just for Europe, but for the United States as well.
“After World War II, the Bank of International Settlements reemerged as the main clearing house for European currencies and, behind the scenes, the favored meeting place of central bankers. When the dollar came under attack in the 1960s, massive swaps of money and gold were arranged at the BIS for the defense of the American currency. It was undeniably ironic that, as the president of the BIS observed, "The United States, which had wanted to kill the BIS, suddenly finds it indispensable." In any case, the Fed has become a leading member of the club, with either Chairman Paul Volcker or Governor Henry Wallich attending every "Basel weekend." Edward Jay Epstein, “Ruling the World of Money” November 1983 issue of Harper Magazine
At first, this organization sought to remain in the shadows. Their work was kept secret, their influence and control profound.
“In May 1977, however, the BIS gave up its anonymity, against the better judgment of some of its members, in exchange for more efficient headquarters. The new building, an eighteen-story-high circular skyscraper that rises over the medieval city like some misplaced nuclear reactor, quickly became known as the "Tower of Basel" and began attracting attention from tourists.” Edward Jay Epstein, “Ruling the World of Money” November 1983 issue of Harper Magazine
Now their work, although still unknown by the vast majority of even the nations they control, is more publicly carried out. It will therefore not be easy to change the structure that so much time and energy has been created. With the voted departure of Britain from the European Union, it will be interesting to see how the future will play out.
Cameron A. Bowen
