If you've been following the research of Catherine Austin Fitts or Dr. Mark Skidmore of Michigan State University in the past few years, you'll know that there's incontrovertible evidence of a lot of missing money, particularly in the American federal "budget".  But W.G. spotted this story about the Bank of International Swag Settlements (BIS) finally noticing the same thing:

‘Huge, Missing and Growing:’ $65 Trillion in Dollar Debt Sparks Concern

There's something here that caught my eye however, and I hope I'm 100% wrong about what it might indicate, but - banksters being banksters, particularly at the Bank of International Swag Settlements - I fear I'm not.

In any case, here's the story:

There’s a hidden risk to the global financial system embedded in the $65 trillion of dollar debt being held by non-US institutions via currency derivatives, according to the Bank for International Settlements.

In a paper with the title “huge, missing and growing,” the BIS said a lack of information is making it harder for policy makers to anticipate the next financial crisis. In particular, they raised concern with the fact that the debt is going unrecorded on balance sheets because of accounting conventions on how to track derivative positions.

The findings, based on data from a survey of global currency markets earlier this year, offer a rare insight into the scale of hidden leverage. Foreign-exchange swaps were a flashpoint during the global financial crisis of 2008 and pandemic of 2020, when dollar funding stress forced central banks to step in to help struggling borrowers.

To be sure, the debt is backed by an equivalent amount of hard currency. To understand how the system works, consider a Dutch pension fund buying assets in the US. As part of the transaction, it will often use a foreign-currency swap to exchange euros for dollars. Then, when it’s closed out, the fund will repay dollars and receives euros. For the length of the trade, the payment obligation is recorded off-balance sheet, which the BIS calls a “blind spot” in the financial system.

It’s that opacity that puts policymakers at a disadvantage, according to BIS researchers Claudio Borio, Robert McCauley and Patrick McGuire.

Now if the arrangement outlined sounds a bit familiar, it should, because it's  one and the same arrangement that lies at the heart of the FTX scandal and the shenanigans of Mr. Bankkman-Fraud Bankman-Fried, just substitute, say, "Bitcoin" (or other crypto "currency" of your preference) for "euros" and you'll get the picture. The rest of the article continues in much the same vein.

But wait a minute... the opening paragraph is talking about derivatives, not swaps, which are not exactly the same thing.  After opening the article with one sentence about derivatives, we're suddenly, and for the next few paragraphs, talking about nothing but swaps. Indeed, I've written often on this site, and in a couple of my books, that there is somewhere between 14 and 17 quadrillions of dollars of derivatives sloshing around in the system, based on the credit default swaps of the late 1990s. Basically, derivatives are securities issued on a swap, using the swap as the collateral to back the derivative, which derivative can then be bundled into a further tranche of securities, and then we have derivatives of derivates, and so on. And here you thought bookkeeping was only about addition and subtraction, when in fact, it's about calculus, first, second, and nth order derivatives and massive  noodle-baking range sums. The signs at the personnel office used to read "Wanted: bookkeeper with financial accounting experience, apply within" now read "Wanted, PhD. in Higher Mathematics specializing in Lie algebras, graph theory, partial differential equations, tensor calculus, and linear algebra. Experience in higher order topologies also helpful."

In short, the financial system is a complicated "incomprehensible" mess. There's so much bad paper sloshing around in it, so many disparate accounting procedures, that even the Bank of International Swag Settlements does not know what is going on, and notably, it cannot appeal to digital currency as a solution to the problem, thank you Mr. Bankman-Fraud Bankman-Fried.

Which returns us to that strange opening sentence, and its mention of currency derivatives.  Have we just been told, in the usual round-about en passant way that the "elite" has, that there is also something in the system called "currency derivatives", sloshing around at the same time as credit default swaps, weather derivatives, planscamdemic bonds, and so on? Have we, in other words, behind this rather generalized term, just been informed that there is yet a another different kind of financial instrument floating around on the float of the swap?

If so, did the BIS just in a round-about way acknowledge something I have suspected for a long time, namely, that there's an entirely hidden financial system, and that the BIS isn't in on all of its workings?

If so, and we're dealing with a whole world of currency derivatives, in what currency/currencies are they predominantly denominated (besides the dollar, as the article indicates)? Is there a recognized off-the-known-public-books unit-of-account for these derivatives?

I really hope the answer to all these questions is a big fat "no", and that my blurry tired eyes are just seeing things where there's nothing to be seen... or maybe that what BIS's problem really is: there's nothing on the balance sheets to be seen...

See you on the flip side...

Joseph P. Farrell

Joseph P. Farrell has a doctorate in patristics from the University of Oxford, and pursues research in physics, alternative history and science, and "strange stuff". His book The Giza DeathStar, for which the Giza Community is named, was published in the spring of 2002, and was his first venture into "alternative history and science".

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  1. hacktivist on December 23, 2022 at 5:43 pm

    The BIS today is a quagmire I hear and I don’t know much about it but I’ve got a Moneytree account still working somehow (a way to sell things online minor) and it feels like international settlements when it’s really just a U.S. business. They really have to vet those Internet leads. Thanks for your work Joseph. I’d help you on there one day with a product for your show if I could. Neverblue ads were pretty cool too. It’s rough getting paid but when you get paid it’s nice. There’s always heartache in it (if there’s a special phone call or anything) but over the years they can be consistent (very well I believe) if your ad is up and it’s the same every time. I know this probably shouldn’t go on the forum. I’ll just zip out of here. It’s a roadway to success for some pages your size I believe (not like you need it: you have a book career stunning and worth reading (that almost gave me a heart attack the other day it was so accurate). The Nazi International was the best one I think but I shouldn’t be speculating (I should read them all). One day I’ll get to it. Karlsberg Caverns is a cool place to go if you ever want to visit there (it’s a deep symbol as we’re talking literally a cave) and their advertising is on Neverblue I think (you could promote it and get paid whenever someone goes). You can’t go all the time (of course) and it’s sick actually how lit up it is now for families and how robust they have it. You can get them to turn the lights off while you’re in it and you’ll feel it’s really scary. There are certain things you can’t feel anymore while you’re in there but it’s going away in the cave and you’re not risking your life in there really (it just feels like you are). You may actually be technically speaking (risking it) as any U.S. cave could collapse at any moment (technically) and sorry for writing like this. I know I sound like a kid. I can’t think of what style to write in so here I am going for verbose.

    You like to do it in certain books I can tell but not without reason (that’s why I enjoy your stuff). Mix into the public version of what you’re supposed to be doing (making money on the site) and I think you’ll look better on the pages where there’s no big ad for your premium (you could sell a cave access if I understand correctly, a gyroscope, or anything really (a spinning top from Egyptian provenance and more (there’s a ton on there)). Now I sound like an ad. I better go. Enjoy your work and I hope you make more books as I enjoyed The Nazi International, Babylon’s Banksters, and the Reich Of The Black Sun (a fun one) and the pages feel good over the years so I think you have a good publisher too (some books feel weird over time). Keep him if you can. Let me know what’s going on (down the road sometime) if you want to actually go see a cave. I’ll show you a cool one with a few people (it’s a minor hobby of mine). Thanks and enjoy your day.

    • hacktivist on December 23, 2022 at 10:53 pm

      Faux scams are out there. You have eat right food and go there in the daytime. It can make your stomach grumble. 5 steaks a day is what they want you on somewhere in the system but a single clam would be nice. You can get them at the store but they’re hard to find now. Really look up clams (you might like them). I want to put pearls on this one girl Holy and leave her around my place making anything she wants. That’s my goal right now. I don’t know about online gigs really (I’m not into them) and I kind of misspoke above. I was playing around. Neverblue might not even be there anymore (it’s been a while since I checked on it). Sorry maybe you can tell I’m drunk. I’m going to quit posting here (I don’t like this screen name). I’ll change it and go to the forum later if I sign up as a full member. You have to eat 5 wings too (you have to know that). Chinese can’t give you more than that (not without a special plate that makes them not feel as good). That’s just my tip. Bye again. Sorry about all of this. Hopefully I make it (to Karlsberg Cavern one day) and am enjoying myself with her too. Sorry it’s a ramble. Bye again.

      I was misrepresenting the truth for a while and picking the wrong girl Can you believe it ? Some guys get caught in dazes and finally snap out of it (years later even). I heard Rich say something about it (her age) a long time ago (not your rich, some other rich). Hopefully he meant he’s going to help her, and help me find her Bye now. Sorry about this.

  2. bluelectricstorm on December 18, 2022 at 5:46 pm

    It’s all as simple as Monopoly isn’t it?
    The banksters hand out their “money”, and take it all back at the end.

    They never would have let me play that game if they’d understood how it put the final nail in that money making coffinated way of life….for me.
    Another great “thing” europe brought to the americas….money.

  3. Laura on December 17, 2022 at 10:28 pm

    seems like BIS is building the policy case to regulate some activities of shadow banking. software solutions exist to track the ‘off book’ swaps, settlements, and fx trades. so as long as FTX (no obvious records) is in the spot light for driving new regulations, be sure to cover systemic risks which can/should be made more transparent in distributed ledgers which then create the report-able information – automatically. the shadow banks will lobby to narrow the application of new crypto exchange laws.

  4. Brendan on December 17, 2022 at 8:44 pm

    Bankster: “Have you seen my trillion dollar note, Alfred?”
    Butler: “No sir but perhaps if you retrace your steps you might find it?”
    Bankster: “Gee, well there’s the Caymans … the Ukraine for a laundering conference … nope can’t remember. Oh well it’s not my money.”

  5. FeelinGroovy on December 17, 2022 at 3:12 am

    I would speculate that the BIS is part and parcel of the hidden financial system. So I looked for the original article, which is a very interesting read. Some quotes of interest include:

    FX swaps, forwards and currency swaps give rise to dollar obligations that were backstopped in 2008 and 2020 by central banks *acting on little information about who owed the debt.*

    Just how large is the missing dollar debt from FX swaps/forwards and currency swaps? At end-June 2022, dealer banks had $52 trillion in outstanding dollar positions with customers. Non-banks had dollar obligations of half of this amount, $26 trillion. This sum has been growing strongly, from $17 trillion in 2016.
    This $26 trillion dollar debt *is likely owed by entities outside the United States,* for which the dollar is a foreign currency
    The *off-balance sheet US dollar debt of non-banks outside the United States* substantially exceeds their on-balance sheet debt and has been growing faster.

    *It is not even clear how many analysts are aware of the existence of the large off-balance sheet obligations.* This makes it difficult to anticipate the scale and geography of dollar rollover needs.

  6. ats on December 16, 2022 at 9:20 pm

    I’ve been pondering this article for a few days now. I think the most important aspect of this news is why would the BIS put this out now and what are they messaging with it to all the players.

    I think they’re signaling who the fall guy is going to be for the next financial disaster. They’re going to blame banks outside of their control grid and they will use the disaster to argue for more regulation and more reporting obligations on international institutions to bring them under their control.

    FATCA was the first step. This is the next.


    • YM on December 22, 2022 at 8:39 pm

      Hmm… I wonder how this FATCA reflects on the Bidenko family.

  7. marcos toledo on December 16, 2022 at 7:35 pm

    Embezzlement and Swindle Ent on a Cosmic Scale enough to make even God say I can’t believe my own eyes.

    • Robert Barricklow on December 16, 2022 at 7:42 pm

      Loved it!

  8. Richard on December 16, 2022 at 6:17 pm

    In one’s view, merely more broken PROMIS’ under a different guise peering into the faces of those who know better but lack the resources to engage accountability practices. Especially, now, given how fractured some law enforcement measures have become that pertain to these types of criminally bent behaviours. It’s hard to know who’s not bribed or compromised as they’ve also become good actors on a worldly stage.

    Suffice it to say, there does not seem to be any angels of finance – only the deviant-for-profit Ferengi one thought should have been fictional. Their extra-constitutional treachery is actually quite clever given how long it takes to arrive at their suspect dealings, if ever. ‘Must have quite the attorney team for how to avoid notice and disclosure of wrong dealings as determined by current law. You know, the lofty type and above the law – so long as they can get away with it. The rest is minutia at the proverbial bus stop that get ran over as they’re not needed or know too much.

    It seems to be much more than just obfuscating data bits & coinage types into incomprehensibility resulting in outrageous obscurity of meaning. Just consider the efforts put forth at testing the lexicon of expressions – That language conundrum of lengthy, linear, and imprecise phraseology of word-wrestling, as one generally refers to it, in the courtrooms. (Just to make a better case – to win of course – gaining a lottery payout for legal efforts put into practice that are reinvested)

    For many of those players, they seem to need more players at it, so they can become more obscured from prying magnifying glasses of the investigators. It starts to look like an unusual pyramid build. Some of them losing big to ante-up and embellish the pot of glittering precious metals. Makes one wonder how many tons of gold are actually missing anyway.

    The right chemical, added to that sloshing abundance, will likely be redeemed as some sort of payout. One influencer after another seems to be part of the currency flow. Keeping it moving makes it difficult to pin down when any bona fide law enforcement agency gets a whiff of wrongdoing. These Ferengi type schemers seem keen at knowing their limits of exploitation as well as how far they may reach. They learn from their failures, too, much to the chagrin of law enforcement.

    In the last analysis, thus far, not all seems present in the daylight as there remains an advantage of being occulted. That others mistakes and poor decisions become yet another’s capital gains. It is, for the most part, all speculative & arbitrary by design one loophole after another. One has learned NOT to underestimate this upright simian type at their own game.

  9. anakephalaiosis on December 16, 2022 at 5:01 pm

    Swindle is a bad paper, that has no face value. It simply isn’t, what it pretends, and lies beget more lies, to cover up the first lie of the father the devil.

    When an ordinary potato is no longer just a potato, it becomes represented by a paper, with a vague promise of a possible potato.

    By further abstract derivatives of financial wizardry, the spun legend of the magic potato rises, with no feet to the ground.

    Potato farmers work in the realm of vegetative growth, whereas bankers play musical chairs with their minuses, exchanging a whole lot of nothing.

    Farmers know a thing or two about potatoes, that bankers can only speculate about.

    • anakephalaiosis on December 16, 2022 at 5:40 pm

      BTW, man has to make a choice. He can’t have it both ways. The promise of redemption, in the Holy Writ, is embracing the vegetative realm.

      Either man tilts the soil, in the realm of Elohim-Yahweh, or he will be swallowed by Moloch’s bad paper, that is “slouching to Bethlehem, when centre cannot hold”.

      Every seventh day & year was a jubilee, in a deeper understanding, that derivatives are done away with, in a celebration of amnesty.

      Elohim-Yahweh has always been celebration of new beginnings, in “winter passed and guilt forgiven”.

      Jim Henson:

    • Richard on December 16, 2022 at 6:37 pm

      Farmer’s do indeed know more than they lead on. Their daily chores involve most of the sophisticated sciences of irrigation, planting, machining, mechanics, bartering, weather, land management, and natural genetics, to name a few processes that they must deploy successfully toward a bountiful harvest. Muddy boots and sweaty brow are merely an outer guise of active and knowledgeable workmanship.

  10. Billy Bob on December 16, 2022 at 1:43 pm

    Well it’s all just so complicated and messed up. All we can do is “clear the books” and start over with a new less complicated system like digital currency.

    • bluelectricstorm on December 18, 2022 at 5:33 pm

      Good laugh, thanks

  11. Robert Barricklow on December 16, 2022 at 12:10 pm

    It’s all based upon fraud. As it turns out; a truly deep fraud.
    That may have currency, covering-up – a much deeper fraud?

    • Robert Barricklow on December 16, 2022 at 5:43 pm

      The question is then; just when did this unit of base currency,
      enter into tabulation[s]?
      When did this “measure”, become The currency,
      under-writing all the fraud?
      Did this said currency; really have it’s origin,
      say immediately after the Cosmic War?
      Is this, also – an off-world currency?
      What can this currency buy from Earth that is so valuable?
      I mean, are there valuable forms of minerals? Forms, multi-dimensional?
      Plants, that produce some psychic properties; highly sought after?
      Are there slaves?
      Perhaps, a futures’ slave market, in derivative form?
      Maybe, derivative of an off-world science; injected into humans
      – that over time…
      – may produce a ‘mark’able, and thus – valuable “slave”?
      And, how high up-in the pyramid chain of hierarchy[s], does one have to go
      – to access this “off-world knowledge”.
      Is this “access” point, a non-human point?
      Suspected by those humans near “the point”; yet, still “unknowable”?
      Mind control technology as fail safe.
      A technology, that man himself, is just now beginning to breech?
      A technology, that a Tower of Babel[TOB] moment may unlock?
      If so, “time” is now being manipulated; leaving tell-tale signs of “their” presence.
      Presence, that really isn’t in the present tense?
      Because, not only are tongues[consciousness] being scrambled.
      So are timelines[Mandela effect?]; as a TOB approaches.
      In the quantum world, the “probabilities are random;
      but uncompromising in their outcomes.
      The “House” wins.
      So, they manipulate the odds;
      the weather; the genes; derivatives; etc., etc.
      In other words – the off-world outcomes – are too,
      ironically being kicked down the road.

      Deja VU?

      The Lost Science of Astrology – affecting everything?

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