Here is somebody that Glenn Beck needs to put on his ‘Crime Inc’ blackboard, Jaime Caruana. Who is he? Jaime is the General Manager of the Godfather of Central Banks, the Bank of International Settlements. On April 23rd of this year, he delivered a speech at a “high level” meeting sponsored by BIS’s Financial Stability Institute and the IMF Institute in some posh corner of Washington, D.C. The subject of his speech was “marcoprudential policy”. Well, the BIS defines it this way, in Jaime’s own words, “the use of prudential tools with the explicit objective of promoting the stability of the financial system as a whole, not necessarily of the individual institutions within it.”

Greek to you, too, huh? Well, let me put it a better way without the elitist jargons. The BIS wants stronger tools to control global economics. Not only by having cushions to soften cyclical busts but also to buffer and moderate booms as well. In other words, planned macro-economics. Macro-prudential policies would keep so-called free-market cycles, swings and forces in check. Sort of like having a “boot to the throat” ( as Robert Gibbs would say) on the global economy. No more wild swings, just a steady, mono-tone, valium-induced economy. Think of it has having every banker, bond trader and world national leader sound like Martha Stewart!

So the idea is to tame the global economy. To do that, one must tame the Earth. In his speech at this “high level” meeting of the cream of Central Banking, Jaime Caruana said of 2010, “This is the year in which to quantify and finalize key elements of the regulatory reform, including the necessary calendar for implementation.” He also said, “The IMF has been asked by the G20 leaders to prepare a report with options so that the financial sector could make a fair and substantial contribution to the burden of government interventions. From the financial stability point of view, the key is to recognize that taxes/levies and capital surcharges are complements, not substitutes.” He follows, “Levies and taxes, on the other hand, are classic means of dealing with an externality and promote burden-sharing.”

He ends his speech with the following in bold and italicized text in the print version, “Do not underestimate the practical challenges of putting in place a macroprudential overlay.” Jaime admits that putting this framework will be difficult, but that international cooperation will help. The framework will start off as a super-sizing of the IMF and World Bank. After the next crash, caused by the sovereign debt contagion, the framework will expand and include a new global currency and taxation system. After all, those poor debt-ridden nations will need help with their “burden-sharing”.

I should also add that Jaime Caruana gave a similar speech to the gang over at the European Central Bank in Frankfurt eight days earlier on April 15th of this year. There, he also stressed macroprudential tools to be used by the BIS group, the Financial Stability Board. Interestingly, both the House and Senate bills for financial reform here in America call for the creation of a “Financial Stability Board” which will be run out of the Federal Reserve Bank. Just a coincidence? At Frankfurt, Jaime also mentioned another BIS group, the Committee on the Global Financial System (CGFS). He concluded that speech with, “In closing, let me reiterate that I believe there is no turning back from the globalization in finance.”

Yes, I’m sure that in Jaime’s mind, there is no turning back. He’s spent his whole adult life getting his ticket punched at various financial institutions. Basel and Basel II, IMF, and the Bank of Spain. He also belongs to the Group of 30, also known as the G30. Who are they? Well, imagine a club that has members from all your major Central Banks, financial firms like Goldman Sachs, JP Morgan, Morgan Stanely, TIAA-CERF (teacher pension funds) along with academic types like Paul Krugman and Lawrence Summers. It’s currently chaired by Paul Volcker (he sure gets around doesn’t he?) and was founded in 1978 by the Rockefeller Foundation. So Glenn Beck, time to add Jaime Caruana, the Bank of International Settlements and the Group of 30 on your Crime Inc flow chart. Better buy another blackboard, too!