Central bankers empower global standards, raise liquidity requirements

Leading central bank governors said on Sunday they had agreed on a package of measures to strengthen on a “global” scale the supervision of the banking industry, raising “liquidity” requirements for all its member nations and pushing smaller institutions to develop “countercyclical” cash buffers to prevent future collapses.

The measures should “substantially reduce the probability and severity of economic and financial stress,” a statement released by the Basel-based Bank for International Settlements (BIS) said.

The approval sets in motion and enhances revised “Basel II” measures finalized in July, that require banks to bolster capital and remedy flaws exposed by the collapse in credit and financial markets last year.

“Basel II” is a framework for global capital monitoring and measurement. The U.S. has pushed for the framework to include stronger capital requirements for smaller institutions.

A U.S. Treasury official recently told Dow Jones that the framework will be fully implemented by 2011.

“The agreements reached today among 27 major countries of the world are essential as they set the new standards for banking regulation and supervision at the global level,” said European Central Bank chief Jean-Claude Trichet, who presided the meeting.

National financial supervisors were also urged to ensure that pay or compensation for commercial bankers was “properly aligned with long-term performance and prudent risk-taking,” added Nout Wellink, the chairman of the Basel Committee and Dutch central bank chief.

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These bankers really don't understand what causes these boom-bust cycles in the first place. These people are ignoring the advice of many Austrian economists. They are printing more money when they forget that the excess of easy money is what has gotten us here in the first place. I think we should abolish all world central banks... and at least have another system... I mean seriously. This is annoying. I feel we'll all have a really huge bust soon.

They understand quite well, which is why they do this crap. They think we are all stupid and can't understand things like fractional-reserve banking or outright thievery as I call it.

I'm of the opinion that they all should be put on trial for crimes against humanity or some such and when found guilty they should hang.

The laws of a country ought to be the standard of equity, and calculated to impress on the minds of the people the moral as well as the legal obligations of reciprocal justice. But tender laws, of any kind, operate to destroy morality, and to dissolve, by the pretense of law, what ought to be the principle of law to support, reciprocal justice between man and man — and the punishment of a member who should move for such a law ought to be death.

Even Thomas Paine Thought So