Some More Perspectives On This Weekend's Secretive Banker Meeting In Sydney

Tyler Durden's picture

One of the less-reported events this weekend was the not so secret central banker meeting that is taking place in Sidney Australia. Now that factual details are finally emerging it is appropriate to collect some information tidbits about this shindig which has some claiming is reminiscent of a modern day version of the Jekyll Island meeting. From the Sydney Morning Herald.

CENTRAL bankers are an unobtrusive breed by nature and necessity. So it might have escaped the attention of many that Sydney is playing host to a meeting of some of the world's top money men and women to celebrate the 50th birthday of the Reserve Bank of Australia.

However, a secretive gala dinner at the Art Gallery of NSW to mark the event last night attracted a who's who of Australia's political and business world.

Past treasurers included Peter Costello, John Dawkins, John Kerin and Ralph Willis. And, of course, the RBA was well represented, with governor Glenn Stevens and former governors Ian Macfarlane and Bernie Fraser in attendance.

Around 7.15pm, John Howard and his wife Janette arrived, almost at the exact time as Mr Costello, from the other side of the entrance. The pair met, shook hands, and offered a polite ''Good to see you'' before moving up the stairs.

The visit by central bankers includes the president of the European Central Bank, Jean-Claude Trichet, the presidents of the Federal Reserve Banks of San Francisco and New York, Janet Yellen and William Dudley, the governor of the People's Bank of China, Zhou Xiaochuan, the governor of the Bank of Israel, Stanley Fischer, and New Zealand's Reserve Bank governor, Alan Bollard. Last night, some of these bankers were spotted being bussed from their meeting venue at the Sheraton on the Park Hotel to the Art Gallery. The event was held in the Grand Court, which seats up to 350 people.

They drank champagne before looking at artworks and sitting down for dinner entertained by a jazz trio.

The visit by the central bankers comes as world markets fear a second wave of financial stress if the Greek government defaults on its debts. There is also talk the stresses could lead to a break up of the European Union's common currency, the euro.

The low profile of the meeting is also a matter of design. Security is tight and the location of events a closely guarded secret.

Today's meetings will kick off with a session to discuss a paper co-authored by Mr Stevens on the challenges facing central banks. Mr Macfarlane will chair a second session on the financial sector, and the day will conclude with a discussion led by Ross Garnaut on supply side issues.

Last night's dinner came after meetings at the Sheraton between Mr Stevens, Mr Trichet and Mr Bollard.

So, does the health of the world's bankers reflect the ailing global market? A NSW Ambulance waited outside the Art Gallery all night just in case.

It has also turned out that the meetings are organized not by the Australian government, but by the BIS.

Sydney - Central bankers are to meet in Australia's biggest city for two days of talks as plunging stock markets renew fears of a slow and patchy recovery from the global financial crisis, Sydney's Herald Sun reported Saturday. The paper said representatives from 24 central banks, including the US Federal Reserve and the European Central Bank, are to assemble Sunday and Monday in an undisclosed location.

The organizer of the meeting is the Bank for International Settlements rather than the Australian government, which would help explain why secrecy prevails.

The governors of the People's Bank of China, the Bank of Japan and the Reserve Bank of India are said to be on the guest list.

The gathering, arranged last year, takes place against a background of world share markets reeling from fears that governments, not just companies, may have difficulty with their balance sheets.

"It's been a long time since we have seen really serious sovereign risk in developed economies," Gerard Minack, the head of brokerage Morgan Stanley's Australian operations, told the public broadcaster ABC. "We don't have a lot of history to go by, at least in the modern era."

Minack said the concern was not just about Greece, Spain and other southern European countries - the so called Club Med - but about other economies.

"We are now seeing it spread around the ring of fire that surrounds core Europe," he said. "I mean, Eastern Europe looks terrible. We know already there are concerns about the Spanish, the Italians, possibly the Japanese."

It is surprising that two critical concurrent meetings as a G7 event in the Arctic circle would take place while half a world away, both in latitude and longitude, those very countries' central bankers were meeting at the same time. Of course, that events in Europe, the end of QE in England, the imminent end of QE in the US, and the sudden and much hated by central bankers resurgence of the dollar are happening at the same time is merely a coincidence.

h/t Shannon

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the grateful unemployed's picture

One can only wonder what happens when these birds start to fly in formation?

cougar_w's picture

It's fine, until they start crapping in formation.

Then, watch out below.

Ripped Chunk's picture

well actually, quite a bit of it.

tpberg7's picture

Birds?  What if PIGS could fly?

Anonymous's picture

Imagine Elephants.

lawrence1's picture

Jim Sinclaire suggests that a world currency may be on the agenda and, given it was sponsored by the BIS which seems to have more reality contact than most bankers, I take Sinclaire´s suggestion seriously.  He remarks, too, that there are three world currencies at present, the dollar, the Euro and gold. 

Anonymous's picture

They probably want to defend the Euro and their dream of financial world domination:

crosey's picture

Perhaps they're picking out the finishes and furnishings of the Aussie-based, underground bunker to which they will flee, whilst the rest of the world burns in the next wave of failing financial flames.

Assetman's picture

Perhaps they have invited Steve Keen and will commence a comedic roast.

If not, they'll burn him in effigy.

Mr Lennon Hendrix's picture

Oh man, oh man.....Truly though....truly.

I mean, because they sure were not there to be advised by him.


DaveyJones's picture

same ole crap...but, since it's Sydney, going down the toilet in the opposite direction

SWRichmond's picture

OMG, a counter-clockwise swirly?

DaveyJones's picture

don't worry, the fans go in the same direction, so when it hits, the pattern is the same.  

bruiserND's picture

Catherine Austin Fitts is published in New Zeland.

Maybe they can invite her?

Indymac & OneWest Bank - the new can't lose math <LINK TO NEW MATH>
   This is the just plain "wow"!  Wonder how much of this deal is published in the media?   New York senator fires back at FDIC officials who claim he started a panic that led to Friday's seizure of the California bank.    The Year of the Great Vampire Squid $24 trillion in Equity owned by the many disappeared... looted & sent out the back door, and turned up in Asia owned by the few.   “Financial Coup d’Etat” Catherine Austin Fitts, Assistant Secretary of Housing at the US Department of Housing and Urban Development (HUD)   Fitts, the author of "The Myth of the Rule of Law" wrote this paper in 2001. She is more credentialed, sophisticated and informed than any financial columnist I've ever read.

"In the fall of 2001 I attended a private investment conference in London to give a paper, The Myth of the Rule of Law or How the Money Works: The Destruction of Hamilton Securities Group.

The presentation documented my experience with a Washington-Wall Street partnership that had:

  • Engineered a fraudulent housing and debt bubble;
  • Illegally shifted vast amounts of capital out of the U.S.;
  • Used “privitization” as a form of piracy - a pretext to move government assets to private investors at below-market prices and then shift private liabilities back to government at no cost to the private liability holder.   your world views will change froever...drugs, Fortune 500 money laundering, public housing mafia , toxic securities , premeditated political corruption and banksters
CB's picture

I'm sure they'd love for her to join their little benevolent bankers club.

whacked's picture

Thanks Bruiser, a real piece of work.


Another book purchase... just what my library needed...

Cursive's picture

"We are now seeing it spread around the ring of fire that surrounds core Europe," he said.

Ring of Fire, indeed.  Anyone who is long equities should consider selling now.

crosey's picture

I'm gonna hang in SDS, SKF, SRS, and DUG for a while and see if the VIX volcano erupts.  I've never surfed on magma before.  Got this cool new graphite board.  Maybe I won't get burned.

Anonymous's picture

Double entendre:

Debt is a burning thing
and it makes a firery ring
bound by wild desire
I fell in to a ring of fire...

I fell in to a burning ring of fire
I went down,down,down
and the flames went higher.
And it burns,burns,burns
the ring of fire
the ring of fire.

The fruits of debt are sweet
and defaulting's really neat
I fell for debt like a little child
oh, but the fire went wild..

I fell in to a burning ring of fire.....[etc]

Anonymous's picture

It is fitting that Johnny Cash was the singer.
Your altered lyrics are wonderful, maybe another
verse could sing about the burning piles of cash,
paper fiat dollars that is....

MsCreant's picture

Awesome. I almost posted the Youtube but did not.

carbonmutant's picture

... global margin call as confidence ebbs

"Barclays Capital says the net external liabilities of Greece are 87pc of GDP, or €208bn (£182bn).

Spain is worse at 91pc (€950bn), and Portugal worse yet at 108pc (€177bn);

Ireland is 68pc (€123bn),

Italy is 23pc, (€347bn).

Add East Europe's bubble and foreign debts top €2 trillion."


Anonymous's picture

Good points... something is very unsettling about that!

Anonymous's picture

"Sidney Australia."

Is that a person?

If you are referring to the place, it should be 'Sydney, Australia'.

dark pools of soros's picture

any word if the jazz trio was Timmy, Ben and O??

el Gallinazo's picture

No.  It was Timmy and Ben, with Larry wailing on the turdophone.

faustian bargain's picture

well, they do sortof make things up as they go along.

Cognitive Dissonance's picture

"It has also turned out that the meetings are organized not by the Australian government, but by the BIS."

Ah yes, the Bank for International Settlements AKA The Central Bankers Central Bank. Forget Bernanke, Turbo Tax Timmay, Obama and all the rest. You want to know where the real Masters of the Universe reside?

Start here.

SWRichmond's picture

If there were no central banks, there'd be no goddamned secret meetings of central bankers planning how next to fuck us.

Anonymous's picture

Precisely, we know who these pricks are, but just let them keep meeting knowing that they are undermining the global population. Time for the scene from Godfather III and take these pricks out.

MsCreant's picture

I liked Sydney when I was there, there are some posters here who are Aussies, but I wonder if it would be worth it to nuke Sydney? Or, you know,

Send in the drones...

Where are the drones...

There ought to be drones...

Don't bother, their [small airplane engine sound in the distance, getting louder] heeeeeeere...

deadhead's picture

i recall that song MsC i.e. send in the clowns.


I hope you are well!

MsCreant's picture

It's a really pretty earworm. I am indeed well. Or as well as any of us are, given the Tsunami rolling in. Me likes me deadhead. If you see this, let me know what you thought of the Who at the Superbowl.

whacked's picture

We are but a pimple on asia's butt, sarcasm on this thread is about as good as the gold bugs.


Instead of Sydney (oops sorry Sidney) you should just look at capital hill .. then again all you idiots voted the imbecils into power so you should just nuke yourselves!!

MsCreant's picture


Maybe the world would be a better place if we did, but you would still be stuck with those Bilderbankers! :(

LiveWellDoLittleandSitmore's picture

Nuke us or Gas us but please don't use Hilary Clinton on us.

MsCreant's picture

Are you saying she is a weapon of mass obstruction? :-)

Anonymous's picture

Ironically, when Bush came to Sydney a while back.. most locals got as far away as possible ie. at least to The Mountains. I personally did not want to be within a 100k radius... just in case ;-)

Anonymous's picture

"In the interest of disinforming you of the cause and consequences of irreversible multiplication of debt, we are not just lied to regularly. We are deceived without exception, for a purpose; and the purpose not only of all the pervasive, concerted disinformation, but the vast usurpation which must come with it, is preservation of an imposed currency for the sake of unearned accumulation of vast, undeserved wealth, by inherent, irreversible multiplication of debt by usury."

dark pools of soros's picture

it is reversible... it just has to get REALLY ugly with heads rolling down streets..


the old days didn't have so many layers inbetween.  These days they do a great job of propping out puppets and pacifiers to keep the show going

Psquared's picture

But what is the aim? What do they hope to accomplish? World domination? Such a world will likely not exist with money and wealth as wealth cannot be created in such circumstances. The status quo will not accommodate such a goal. They must enslave humanity, accumulate all wealth in themselves and drive everyone else to poverty. But how could such a system exist given the experience of socialism and communism? Do they have another idea? Do they think there is another way to subjugate all of mankind yet still keep the wheel of wealth creation, innovation, capitalism and democracy turning?

Or, have they overreached in their greed and are now reeling from the effects? Are they thinking how they can undo the damage but not show their true hand? Will they overreach again and risk losing hundreds of years of effort to bring us to this point?

I suspect they have overreached and their long extant plans are in jeopardy. The world will not yet accept a one-world currency, a one world central bank and a one world government. So how do they manage this crisis until the time comes when they can put their true plans into play?

Or, perhaps they are winging it taking each step as it presents itself with only a vague outline of what they hope to ultimately achieve. That ultimate goal can only be to concentrate wealth in the hands of the elite and enslave the rest of us into a sort of Truman Burbank existence where everything looks great and we have just enough to keep us satisfied and working while they steal everything from us in secret.

kurt_cagle's picture

I'm inclined toward the winging it theory myself. They've overreached, tipped the system out of control, and now are desparately trying to figure out how to restore the status quo. Keep in mind that the status quo was working for them, and now, all of a sudden it's not.

The best analogy here would be a pig farm. A good farmer knows the optimal point to keep the pigs happy and growing, knows how to cull the pigs without destroying his ability to keep the farm going with piglets later in the year. What's happened now is that the pigs are suddenly deprived of their feed, and are transitioning from being confused to being very, very angry. The challenge to the farmer is figuring out how to kill enough of them before facing several thousand pounds of pork on the hoof stampeding towards him.

Somehow I doubt this was planned.

Anonymous's picture

Wouldn't it be priceless to see the stunned looks on their faces if they were all rounded up and put on trial, like the criminals they are?

dark pools of soros's picture

but thats the problem now.. we have so many layers on the ladder that we can never get a 'us vs them' mentality..  too many people feel they aren't part of the poor but also not really part of the rich and your idea of rich/poor is different than the next guy's rich/poor


everyone has to go back to eating rats before they'll see a common ground


even on this board - the guy with 10 bars of gold is going to think he is way better than the guy with 10 bars of silver. Even though they are both a bunch of schmucks

cougar_w's picture

One of these days, the central bankers of the world's major economies will meet in an out-of-the-way location. They'll meet for a few days, on the first day in common but after that they'll mostly ruminate in the halls and gardens in groups of 3 or 4, comparing notes, trying to decide.

On the third day they'll re-assemble and sit through a presentation of all the facts and ideas as they are then known. They will sit quietly in their leathern chairs, sipping wine and glancing at each other, sometimes giving the Is that what you think? look across the room.

There will much shrugging of shoulders. Yeah, that's what I think.

At the end of the presentation there will descend a long silence, punctuated only by the sounds of people shifting their weight uncomfortably in padded seats, or returning a coffee cup to a saucer, or lightly coughing.

"I believe we all know what this means," the presenter will say then into the deep, reflecting silence.

"I don't think we can just tell people it's over," a woman will say from where she stands before a picture window, her back to the assembled.

"Then don't tell them," a man says while pulling on a pipe. "They wouldn't understand if you did."

"Unless they have a right to know anyway," she will reply, turning.

"They have no rights of any kind," might say a third. "That is the first myth we must dispel."

They will go home.

As agreed, they will say nothing.

Everything then changes completely but only by degrees, so that even the results arrive unseen. Everything is forgotten and then it is gone. It is over, and it is not coming back. Where all the wealth went will never be known, just as it was never really known where it had come from. The transient nature of the universe gaveth, and so doing taketh away.

The history books will not need to be rewritten, they will simply cease to exist.

Game over. Reset. Would you like to play again?



MsCreant's picture

Very eerie Cougar. I like it. Or not. Something. But yeah, that seems about right. May be the rightest thing I have read about the whole deal.

I like speculative fiction. Useful stuff.

cougar_w's picture

Eerie like writing your own obituary; not prudent. Not sure why. Just don't.



crosey's picture

Yo Coug'!...sounds like an Ayn Rand epilogue, with a touch of Ray Bradbury.  Nice.