Aliens over our rural banks II (Herman Tiu Laurel / DieHard III / The Daily Tribune / 06-12-2013 WED) In our last column we reported the very quiet passage of RA 10574, which opens Philippine rural banks to 60 percent foreign ownership, signed into law by BS Aquino III last May 24. A former head of a rural bank association in the country whom I interviewed sounded the alarm that foreign interests with ominous intentions will now gain not only a foothold but control of the grassroots credit network of rural banks, allowing them to push programs that may be totally harmful to the Philippine economy and Filipino people, such as those of US food giant Monsanto, which can fast track the insertion of GMO (genetically modified organism) seeds and ancillary products such as pesticides and fertilizers into our food chain. This law will ultimately prove immensely deleterious to the nation, especially for future generations. Moreover, Philippine rural banks suddenly found themselves undercapitalized when the Bank for International Settlements (BIS) introduced new rules under Basel III imposing higher capital requirements for all banking institutions the world over. The BIS has been severely criticized in the past for failing to monitor or anticipate the crises that arose from abuses committed by global banking and financial institutions of their financial powers and businesses, such as the Wall Street collapse in 2008 which caused the financial Armageddon still bedeviling the US and European economies. The BIS has detractors aplenty, including US law scholar, economics researcher, and public banking advocate Ellen Brown, who wrote the article, “The Tower of Basel,” which likens the BIS abuse of power, arrogance, and corruption to the Biblical story of the Tower of Babel, at the same time exposing the international body’s plan to issue and control the global currency. A global currency to replace the US dollar today may be a relished prospect for many, but does anybody (except the global bankers) believe in having a band of secretive, elitist, unelected, and unaccountable powers, such as the BIS, define and control such a global currency? For most Filipinos who invariably don’t know a thing about how their peso is controlled, much less manipulated, by alien elements, these issues do not matter. For this reason, the Philippine economy is one of the most badly victimized by the global currency manipulators. Every cycle of Philippine economic collapse has been precipitated by massive currency devaluations caused by global manipulations--from the decontrol by Diosdado Macapagal in the 1950s, which destroyed our incipient industrialization, to the 1970s devaluation that collapsed the Lopez empire, as well as the 1997-1998 Asian Financial Crisis. Back to RA 10574 or the Foreign Equity Bill allowing 60 percent voting stocks ownership of Philippine rural banks by foreign interests, one rural bank association official said, “Now that foreign investments are allowed, rural banks are… in a better financial position to reach out and serve both the unbanked and under-banked through improved banking services.” But the fact that stares at anyone who cares to open his eyes is, the Philippines, along with its banking system, is awash with cash, which only needs to be redirected by Philippine financial and banking authorities to rural banks. This is evidenced by the repeated headlines in the business papers, such as “Cut in SDA rate seen to be just a matter of time,” which means the further reduction of interest rates, from 4 percent just months ago to 2 percent today and even lower in the weeks ahead, for the P2-trillion Special Deposit Account (SDA) with the Bangko Sentral ng Pilipinas. What is the BIS’ role in this? It’s none other than to raise the equity requirements for all banks in the world under its aegis. Rich and powerful countries such as China would have no problem with it as they are awash with cash and are still able to retain control over their currency while maintaining public ownership and management of all major financial and banking institutions. For Philippine rural banks, however, no matter how well run, the requirement simply compels them to look for new sources of equity. Basel III is a key to pushing small rural banking systems of many Third World countries to control by foreign funds. What can and will surely follow is the rape of their economies. The crafters of RA 10574 must have done their homework on how to justify the 60 percent foreign ownership of rural banks, which still ought to be subject to the constitutional provision protecting Filipino control; but we’ll do our part now with pro bono lawyers to examine the constitutionality of this law. Slowly but surely, the Philippines is coming under the New World Order run from the centers of Western finance (i.e. the City of London; Basel, Switzerland; Wall Street), under the direction of the unelected and unelectable oligarchs of money and power circles, e.g., the Bilderberg Group (whose last meeting at Grove Hotel, Hertfordshire, England on June 9, came complete with a no-fly zone). But that should no longer come as a surprise since everything in the Philippines, from the top--its president, the entire banking system--down to the grassroots level (rural banks), is being unquestioningly placed under the control of those whom financial critic Max Keiser calls the global financial “banksters.” (Tune in to 1098 AM, Tuesday to Friday, 5 p.m. to 6 p.m.; watch GNN Destiny Cable Channel 8, Saturday, 8:00 p.m. and replay Sunday, 8 a.m. on “Mon-Satan, the GMO evil”; visit newkatipunero.blogspot; and text reactions to 09234095739)
Posted on: Wed, 12 Jun 2013 03:56:46 +0000
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