Wednesday, October 31, 2012

More to the German Gold Story

By Dan Denning
http://www.ibtimes.co.uk/articles/399863/20121031/more-german-gold-story.htm

















Last week we mentioned that Germany's audit office wanted the Bundesbank to make sure German gold held in foreign vaults is...you know...actually there...and has not been leased into oblivion, never to back sound money again. Well the story gets better.


Germany reduced its London gold holdings from 1,440 tonnes to just 500 tonnes all the way back in 2000 and 2001, according to Ambrose Evans Pritchard in the Telegraph. If true it makes the whole story even more intriguing. Why did the Germans repatriate their gold when the euro was at its weakest?

Back then it took only 84 US cents to buy a euro. Those were the good old days when travelling to Europe didn't cause you heartburn because of the cost. Today it costs 129 US cents to buy a euro. That's actually worth thinking about, given how poorly the last few years have gone for the common currency. Of course Ben Bernanke has something to do with keeping the dollar weak, too.

But in any event, Chancellor of the Exchequer Gordon Brown was selling Britain's gold around the same time the German's were taking theirs home. Other than making completely opposite decisions, the biggest difference between the two is that Brown told everyone he was selling before he sold and the Germans told no one.

Did the Germans believe the euro would need physical gold backing to prove its mettle in a crisis? Or were they just being prudent in their mistrust of the Anglo-Saxon crooks and thieves in the City? And where is the rest of the gold overseas? Is it still there? Or has it been leased into oblivion?

These are intriguing questions. But in a normal financial world, they'd be trivial curiosities. Civilised people would be engaged in the hard work of valuing and buying and selling productive enterprises. Keeping track of gold - the corpse of value as it's called by Japanese engineer Goto Dengo in Neal Stephenson's book Cryptonomicon - is the sort of thing you do when all other wealth has been/is being destroyed.

The Global Banking ‘Super-Entity’ Drug Cartel: The “Free Market” of Finance Capital

By: Andrew Gavin Marshall

HSBC bankers testifying before U.S. Senate on laundering billions in drug money
(photo courtesy of The Economist, 21 July 2012)






















I would like to introduce you, the reader, to some realities of our global banking system, resting on the rhetoric of free markets, but functioning, in actuality, as a global cartel, a “super-entity” in which the world’s major banks all own each other and own the controlling shares in the world’s largest multinational corporations, influence governments and policy with politicians in their back pockets, routinely engaging in fraud and bribery, and launder hundreds of billions of dollars in drug money, not to mention arms dealing and terrorist financing. These are the “too big to fail” and “too big to jail” banks, the centre of our global economy, what we call a “free market,” implying that the global banks – and corporations – have “free reign” to do anything they please, engage in blatantly criminal activities, steal trillions in wealth which is hidden offshore, and never get more than a slap on the wrist. This is the real “free market,” a highly profitable global banking cartel, functioning as a worldwide financial Mafia.

Read entire essay here: http://andrewgavinmarshall.com/2012/10/28/the-global-banking-super-entity-drug-cartel-the-free-market-of-finance-capital/


Where’s The Gold?: German Politicians Demand to See Gold in US Federal Reserve

Bundesbank President Jens Weidmann wanted to personally convince Peter Gauweiler that the German gold was still where it should be. Early this summer, the head of Germany’s central bank took the obstinate politician from the conservative Christian Social Union (CSU), a party that is a member of the government coalition in Berlin, and a number of his colleagues into the Bundesbank’s inner sanctum: the gold vault.

There, 6,000 gold bars are stacked on industrial-strength shelves in a purpose-built building in Frankfurt. An additional 76,000 bars of bullion are stored in four safe boxes, in sealed containers.

But even this personal inspection wasn’t enough to reassure the visiting member of parliament — on the contrary: “The Bundesbank monitors its domestic gold in an exemplary fashion,” Gauweiler says, “and this makes it all the more incomprehensible that the bank doesn’t look after its reserves abroad.”
For quite some time now, Gauweiler has been pestering the government and the Bundesbank with questions concerning where and how the country’s reserves are stored, and how often they are checked. He has submitted requests and commissioned reports on the topic.

Last week, Gauweiler celebrated his greatest triumph to date in his gold campaign, which has been a source of some amusement for many fellow German politicians: A secret report by the Federal Audit Office had been made public — and it contained stern criticism of the German central bank in Frankfurt. The Bonn-based auditors urged a better inventory system, including quality checks.

This demand, which even the bank’s inspectors saw as nothing more than routine, alarmed the Berlin political establishment. Indeed, the partially blacked-out report read like the prologue to an espionage thriller in which the stunned central bankers could end up standing in front of empty vaults in the US.

‘Grotesque Debate’

For decades, German central bankers have contented themselves with written affirmations from their American colleagues that the gold still remains where it is said to be stored. According to the report, the bar list from New York stems from “1979/1980.” The report also noted that the Federal Reserve Bank of New York refuses to allow the gold’s owners to view their own reserves.

Not surprisingly, this prompted strong reactions in Berlin: The relevant Bundesbank board member Carl-Ludwig Thiele was summoned to Berlin to provide an explanation to the parliamentary budget committee. Heinz-Peter Haustein of the business-friendly Free Democratic Party (FDP) was even quoted by Germany’s mass-circulation Bild newspaper as saying that “all the gold has to be shipped back.”

The Bundesbank’s otherwise reserved Thiele said that he found at least “part of the debate” to be “rather grotesque.” His financial institution currently has more pressing problems. Bundesbank head Weidmann, for example, is desperately fighting the European Central Bank (ECB) decision to buy unlimited quantities of sovereign bonds from crisis-ridden countries as a way of lowering their borrowing costs. In addition, the Bundesbank has already pumped nearly €700 billion ($906 billion) into primarily southern European countries as part of the euro-zone central bank transfers known as Target II.

Germany’s gold reserves are currently worth some €144 billion and are not stored “with dubious business partners,” as Thiele stresses, but rather with “highly respected central bankers.”

Special Connection

There is in fact nothing unusual about how Germany deals with the precious metal. Many other central banks store a portion of their gold reserves abroad. The Netherlands, for example, places its trust in its colleagues in Ottawa, New York and London.

But the relationship Germans have with their gold is a special one. Germany hoards nearly 3,600 metric tons of the precious metal — only the US has more. Much of this gold treasure was amassed under the Bretton Woods international monetary system, in which the dollar served as the world’s key currency and was directly convertible to fixed quantities of gold.

Before the gold standard was terminated in 1971, the current account surpluses generated by Germany’s “economic miracle” were partially balanced out in gold. Thousands of US bars of gold alone were transferred to German ownership.

But since the euro is not backed by gold, such vast reserves are actually no longer necessary. Nevertheless, the Germans continue to resolutely defend them — and every attempt to use this treasure has been met with dismay.

There has been no lack of proposals: Former German President Roman Herzog wanted to sell the gold to form the basis for a capital-based nursing care insurance scheme. In 2002, FDP parliamentary floor leader Rainer BrĂ¼derle proposed a fund for natural disasters. Former Bundesbank head Ernst Welteke added to the debate by suggesting the foundation of a national educational fund. But none of these ideas were ever taken seriously.

Most recently, German Chancellor Angela Merkel of the conservative Christian Democratic Union (CDU) shot down an idea by the euro partners to use the reserves as collateral for euro bonds.

Strict Security

As a result, in addition to safeguarding the reserves of over 60 countries, the Federal Reserve Bank of New York continues to hold 1,536 metric tons of German gold — or nearly half of Berlin’s reserves. This enormous hoard of gold is stored in the fifth subfloor of the bank’s building on Liberty Street, 25 meters (80 feet) below street level, and 15 meters below sea level. According to the bank’s website, the vault rests on the bedrock of Manhattan Island.

Tourists are allowed to venture below street level to see the vault. After descending in an elevator, they stand in front of an enormous steel cylinder that pivots like a door in a 140-ton steel-and-concrete frame. But not even the owners are allowed to view their own gold. According to the Federal Audit Office report, the Fed explained that “in the interest of security and of the control process” no “viewings” are possible.

Finally, in 2007, “following numerous enquiries,” Bundesbank staff members were allowed to see the facility, but they reportedly only made it to the anteroom of the German reserves.

In fact, auditors from the Bundesbank made a second visit in May 2011. This time one of the nine compartments was also opened, in which the German gold bars are densely stacked. A few were pulled out and weighed. But this part of the report has been blacked out — out of consideration for the Federal Reserve Bank of New York.

“I would like more transparency on the issue,” says Bundesbank board member Thiele. The Americans are very sensitive, though, when it comes to security procedures in their gold storage facilities. In their second major depository, the legendary Fort Knox, practically no one in recent decades has been allowed to view the gold reserves.

Fuelling Legends

Such intense secrecy fuels legends. Many conspiracy theorists have suspected for decades that the German gold has long since disappeared. Others believe that it has been lent out. They contend that there are only promissory notes of little worth stored in the bank’s vaults.

Another myth that has been making the rounds in nationalist-oriented German circles is that the US refused to hand over the treasure and threatened during the Cold War to withdraw its troops from Germany if the Germans demanded their gold back. Former Bundesbank head Karl Blessing, according to the theory, had to provide the US written confirmation that he would never do such a thing.

This letter, as it happens, actually exists, as Blessing confirmed in his last interview with SPIEGEL in 1971 — except it doesn’t concern the German gold, but rather US gold reserves. Until 1971, every dollar could be exchanged for the precious metal. Blessing thus promised the US Federal Reserve that he would no longer convert the colossal German dollar reserves to gold because this would have caused the currency’s value to plummet.

Today, this historic document is even available online. But that hasn’t silenced those who oppose stockpiling German gold abroad. Instead, the debate over a collapse of strictly paper-based currency is experiencing a renaissance — as is the dispute over the gold reserves. Even Green Party financial expert Gerhard Schick has joined the fray: “I think the question of how much gold is available in an emergency is a valid concern.”

Outlandish Idea

From a purely logistical perspective, though, returning the reserves seems outlandish. One cannot simply pack 1,500 tons of gold into an Airbus A380 super-jumbo jet and fly it back to Germany.
The Bundesbank also objects to this notion for another reason. It says the gold is supposed to act as an emergency buffer. In the extreme situation of a currency collapse, the bankers say that the gold bars could easily and quickly be exchanged on location for pounds or dollars to pay urgent bills.
In a bid to calm the debate, the Bundesbank has pledged to bring back and inspect 150 tons of gold from abroad over the next three years. Furthermore, there are plans to count and weigh the gold bars stored in one of the nine chambers at the Fed in New York — although no date has been set for this.
Bundesbank board member Thiele was also recently in New York where he took a look behind one of the vault doors. He had good news for the members of the parliamentary budget committee: “There was no paper in there, just gold.”

But that’s not enough for CSU politician Gauweiler. He’s only prepared to put the matter to rest when the central bank has thoroughly inspected all the German reserves throughout the entire world. His credo: “The Bundesbank is independent, but it can’t do what it wants.”

Source: http://stratrisks.com/geostrat/9043

Russian Ship Carrying 700 Tons Of Gold Ore Missing

MOSCOW –  A vessel with a nine-person crew and 700 tons of gold ore onboard has disappeared in stormy seas off Russia's Pacific Coast.

The Russian vessel carrying 700 tons of gold ore disappeared in the stormy seas off Russia's Pacific Coast.
(Photo courtesy Russian Television)



The ship sent a distress call on Sunday as it was sailing from the coastal town of Neran to Feklistov Island in the Sea of Okhotsk.

The vessel, hired by mining company Polymetal, was carrying 700 tons of gold ore from one deposit to another where it was to be processed. Gold ore is the material from which gold is extracted and contains only a small percentage of the precious metal.

Polymetal's spokesman on Monday would not estimate the value of the cargo.

The company said it has shipped ore via that route before, and there was nothing unusual in shipping it by the sea.

Tuesday, October 30, 2012

The First Hurricane Sandy

Sandy has happened before, sort of.
By Steve Huff

The Hurricane was named Sandy. It struck in October and took a path that brought it through northern New Jersey and New York State before the storm petered out over Canada.
This Hurricane Sandy happened in the minds of members of the American Radio Relay League (ARRL) in Westchester County, New York, 15 years ago this month.
The webpages created at the time to war game this imaginary Hurricane Sandy are still online. The main page reads in part:

Hurricane Sandy is a fictitious hurricane based on a real one: the Hurricane of 1938. The following National Weather Service advisories and storm tracks are based on data from that storm and are being used as stimuli for an Amateur Radio emergency communications drill. They were produced at a training seminar at the National Hurricane Center in Miami, FL.


The first, fake Hurricane Sandy was an exercise for ham radio enthusiasts to practice relaying vital information should a situation identical to the real Hurricane Sandy ever occur, destroying more conventional lines of communication.

The mock-ups they created of National Weather Service bulletins about the storm make for eerie reading now, as the budding superstorm forces evacuations around Long Island Sound and closes the stock exchange:


…LARGE AND POWERFUL HURRICANE SANDY MENACING THE ATLANTIC
SEABOARD…AT 5 AM EDT…0900Z…THE HURRICANE WARNING IS EXTENDED NORTHWARD TO ROCKLAND MAINE. A HURRICANE WARNING IS NOW IN EFFECT FROM CAPE LOOKOUT NORTH CAROLINA TO ROCKLAND MAINE.
The ARRL drill involving Hurricane Sandy certainly seems strange now, but similar coincidences have occurred in the past. After the Titanic plummeted to the bottom of the North Atlantic in 1912, someone remembered that a little known author named Morgan Robertson had written a novel many years before that was eerily similar to the tragedy.

The Observer checked Internet Archive versions of the pages related to the fictional Hurricane Sandy to ensure this was not a hoax.

They have been online and unchanged for a decade and a half.

Awakening Our Indigenous Mind: Hopi Prophecy on the Coming Great Purification

There is a river flowing very fast, it is so swift that there are those who will be afraid. They will try to hold on to the shore, they will feel like they are being torn apart and will suffer greatly.

Know that the river has a destination. The elders say, we must let go of the shore, push off into the middle of the river and I say see who is in there with you and celebrate.

At this time in history, we are to take nothing personally, least of all ourselves. For the moment we do, our spiritual growth comes to a halt. The time of the lone wolf is over. Gather yourselves together, banish the word 'struggle' from your attitude and vocabulary. All that we do now must be done in a sacred manner and in celebration. We are the ones we have been waiting for.


- Hopi Ancestors


Many who still practice traditional Hopi culture feel that the world's axis is wobbling out of control, as the end of the current Fourth World approaches.
 
This essay is excerpted from Robert Tindall and Susana Bustos, Ph.D.'s forthcoming book, Awakening Our Indigenous Mind, available from Inner Traditions. 
 
Between the underground kivas of the Hopi and the astronomical temples of the Maya where prophecy of world shaking events were received in ancient times, and contemporary apocalyptic fantasies such as the film 2012, lies a vast distance. Yet somehow those indigenous visions have migrated through the time depths to ignite our contemporary imagination, poised as we appear to be on the edge of their fulfillment.

Perhaps this is because, like other beings of myth, prophecy roams from mind to mind. One of the further flung components of a culture's cosmovision (or what we call, from a safe distance, a mythological system), prophecy arises from a confluence of visions, dreams, trance-states, and artistic inspiration. It is also, like a dream, curiously elusive to pin down - official, priestly versions may eventually be engraved upon calendrical stones at the feet of pyramids and jungle astronomical observatories, but only after the prophecy has simmered among the people, in many local variations, for many passing moons.

In addition, I suspect prophecy only becomes truly relevant when heard. Prophecy is not a fact. Rather, it is a thing received, taken to heart so it catalyzes change in one's life. Like cosmovision, prophecy may lose its savor when written down. It becomes an official version, an object of critique, something true or false in a factual sense, or an object of veneration. Yet prophecy is not a fact - it is a living current, like the sap that flows through the veins of leaves. In constant evolution, there is no orthodox version. The stream continues to flow through Hopi kivas and other sacred sites.

I therefore never paid serious attention to the buzz generated around 2012. After all, documents are always open to interpretation, facts shift their meaning according to methodology, and like the children's game of telephone, transmission over distance is fraught with error. We have the earth under our feet, its plants and animals and waters, and the stars above us to show us the way. What subtler prophecy could we be privy too?

Then one day, like music, I heard the Hopi prophecy. It came one voice removed from its source, in the person of Bob Boyll, a 75 year old roadman, or peyote shaman, in the Native American Church who has passed many years among the indigenous communities of the U.S. and Mexico.

I first met Boyll, whose ancestry is Scots-Irish and Native American, upon stepping through the flap of a tipi where a peyote meeting was about to commence. A stocky man with grey hair held back in a ponytail, he greeted me with an abstracted, kindly air. Thinking, "Ah, he's a cool old hippy," I went to occupy my seat. This was my first tipi meeting, and that evening I had the privilege of beholding the keeping of a sacred fireplace, which it turned out Boyll, in the office of fireman, was assisting the roadman (as the leaders in Native American Church ceremonies are called), in keeping.

At some point as my visions and dreams danced in the fireplace, I became aware that the old man wading through the coals was working a kind of alchemy. Boyll's hands seemed to commune with the fire, to transmute it, like an ancient Celtic god of blacksmithry, into something magical. In the morning, when he talked about the various intelligences - beings, actually - perceivable within the flames of the fire, I realized that Boyll had, as they say, seriously done his homework.

As part of Boyll's long apprenticeship in the indigenous ways of medicine work, he had sought instruction from the Hopi who live in the village of Hotevilla on Arizona's First Mesa. The year was 1978, a time in his life when he was seeking answers to questions his graduate program in philosophy at Colombia had not addressed, among which were the visionary abilities of the Hopi.

Boyll was given an immediate demonstration. He relates how upon his unannounced arrival at one of the stone mortar houses of the village, he was greeted by a sharp-eyed woman in her nineties, who upon opening the door declared, "Oh, you're finally here! He's been waiting for you all morning!"

Astonished, Boyll was shown into the main room, where a hale and very old blind man sat, who embraced him, saying, "Oh grandson, you finally here!" The Hopi was named David Mononge, and his age was then estimated at 107. Mononge immediately inquired if Boyll had brought one of those recording machines, and being told yes, sent him back out to the car to retrieve it. Mononge had something to transmit, and wanted to make sure it got recorded accurately.

That afternoon the elder Hopi sang for Boyll the butterfly Kachina song. "When you're in ceremony I want you to sing this," he explained, stating he was giving it to Boyll because as a song of unification it contained all the colors of the rainbow. "The time has come," he said, "for a regathering of everyone, not just the Hopi, into unity." Boyll now sings it in sweat lodges he leads throughout the U.S. and Europe.

One afternoon during the week that Boyll passed with Mononge, the old man took him out to the Second Mesa, where one of the prophecy rocks of the Hopi, part of a sandstone cliff formation, rises 20 feet high covered with ancient carvings.

The main petroglyph shows a figure representing the Earth guardian, Maasau'u, who welcomed the original humans, who for the Hopi emerged from under the earth and lived unified for many years under the covenant they made with him. In the hand of Maasau'u is a staff, from which emerges a square representing an original condition of wholeness. Eventually, however, discord arose and migrations took place away from the mesas.* From this square, therefore, embark two lines, which set off across the face of the stone as roads. Upon the upper line are human figures whose bodies progressively disintegrate, first with the loss of the solar plexus, and then with their heads drifting away from their bodies. These figures are known as the people of "two hearts," signifying a state of spiritual disunity, and their road grows progressively jagged and then breaks, indicating disintegration, chaos.

For a detailed description of what each letter represents, visit: http://www.viewzone.com/hopi.prophecy.html

As has gripped the popular imagination, this is a period of geological upheaval and societal discord and collapse, but this emerging chaos is also called by the Hopi the "Great Purification," pointing towards its spiritual significance. According to Mononge, whatever is not essential to our being, anything that draws the heart away from unity, will be consumed, and there will be an opportunity to return to the lower road of the petroglyph, the way of "one heart." In fact, a "bridge" can be seen connecting the two roads during the time of Great Purification, during which a moment of opportunity will occur in each individual's life when the passage will open to go from two-hearted to one-hearted, or vice-versa. Once the bridge is traversed, however, there is no return.

This lower road Mononge described as the way of those who know where they belong on Earth, and that they belong to the Earth. It is the way of those who have returned to their clans. The Hopi vision, it is worth noting, is the opposite of the Garden of Eden myth, which depicts our ancestors as cast out of the clan's origin to wander in exile, unable to return to the original connection to the Garden because an angel with a flaming sword stands guard at the entrance to the sacred land.

In the petroglyph, the road appears lined with stalks of corn and mounds and the leader of the path of the one heart is there, the figure of a man, holding a prayer stick in his hand, planting corn. It is a humble, yet very inviting image.

If wisdom arises from such simple communion with the Earth, then the Hopi may be able to remind us of it. The prayer stick held in this figure's hand was, and still is, used to plant corn in the desert. One might smile and say, it's good to pray if you're going to plant in such conditions.

The Hopi would agree. So prayerful are they, they don't irrigate their corn. They summon the rain instead. Boyll witnessed the Hopi's intimate connection with their ecological system one day when he attended a dance to the Kachina spirits who govern the rainfall.

"The sky went from arid, deep blue from one horizon to the next to pouring rain by the dance's conclusion," he reported. "The rain literally came out of the blue."

According to Mononge, one of the signs of the approach of the Great Purification, and there are many, would be the desire of people to reform their clans. To Boyll, he said, "You're still looking for your original home, but after all the migrations the time has come when your people can find where they belong." Mononge, whose language has no verb to express the concept "to be," meant something bigger than just physical locale. He meant belonging to the cosmos, which is expressed by a clan's spiritual communion with its ancestors, sacred topography, medicines, animal allies, songs, origin myths, dreams and sacred art. even ways of growing food, treating water, or raising children, all those cultural practices that express a vital, living participation in a sentient world.

When Boyll asked Mononge, "Grandfather, how did you know I was going to appear at your doorstep on the day I did?," the old man explained to him that for the Hopi, transmigration occurs not individually but in clans, much as birds migrate not solo but in flocks. These soul groups come in and out of existence, and are attracted to one another, consciously or not, each time they come back into incarnation.

"You are my grandson. We know this, and it cannot be changed," Mononge said. "In kiva ceremony I saw you were about to arrive."

Mononge also said that every sacred fire, kiva ceremony, or peyote meeting, that is to say, every time of collective transformation and evolution among the people, has an attendant spirit. This living being exists long before the event, containing and directing it, and is precognizant of what specific work needs to be done in each participating individual's life.

In a similar vein, these soul groups are pre-existing clans, who especially in the time of the Great Purification are called to find one another. This spiritually-directed regathering strongly suggests that the bridge between the roads of the two-hearted and one-hearted is the way from our collective identity with nation states and corporations (and their fascistic, suicidal tendencies) to individuated kinship within clans, clans who follow the leader of the path of one heart.

Mononge also expressed his belief in the need for renewal among the native peoples of the Americas, many of whom now live caught between two worlds, "It is late for us," he said. "Our cultures have become hardened into systems without connection to their source."

"Essentially, then," I asked Boyll, "Mononge was saying we need to go native again."

"Yes," Boyll responded. "That's it."

This is, according to Mononge's transmission to Boyll, the prophetic summons within the Hopi prophecy for us - to reawaken the indigenous mind, to rediscover our clans as the path of one heart through the coming Great Purification. 

* Among those who migrated were the ancestors of the European whites, who the Hopis say traveled until they came to a wall, upon which they knocked their foreheads four times and then turned around and headed back. "I've seen that wall!" Monongnoe declared, "It's in Jerusalem," evidently referring to the Wailing Wall.

Source: http://www.realitysandwich.com/awakening_our_indigenous_mind_hopi_prophecy_2012_great_purification

Monday, October 29, 2012

Occupy protesters were right, says Bank of England official

The anti-capitalist protesters who occupied St Paul’s Cathedral were both morally and intellectually right, a senior Bank of England official said last night. 
 
Occupiers chain themselves to the pulpit on the anniversary of the now-dismantled protest camp outside the cathedral.  Photo: OCCUPY LONDON
  
By , Deputy Political Editor

Andrew Haldane, a member of the Bank’s financial policy committee, said the Occupy movement was correct in its attack on the international financial system.

The Occupy movement sprang up last year and staged significant demonstrations in both the City of London and New York, protesting about the unequal distribution of wealth and the influence of the financial services industry. Members of the movement occupied the grounds of St Paul’s and remained camped there for more than three months until police evicted them in February last year.

“Occupy has been successful in its efforts to popularise the problems of the global financial system for one very simple reason; they are right,” Mr Haldane said last night. Mr Haldane, the Bank’s executive director for financial stability, was speaking to Occupy Economics, an offshoot of the Occupy movement, at an event in central London.

In a speech entitled Socially Useful Banking, he said the protesters had helped bring about a “reformation” in financial services and the way they are regulated. Partly because of the protests, he suggested, both bank executives and policymakers were persuaded that banks must behave in a more moral way, and take greater account of inequality in wider society.

“Occupy’s voice has been both loud and persuasive and policymakers have listened and are acting,” he said. “In fact, I want to argue that we are in the early stages of a reformation of finance, a reformation which Occupy has helped stir.” 

The protesters had been right about bankers’ behaviour and the consequences of extremely high salaries and bonuses in the financial sector and other industries, he said. “I do not just mean right in a moral sense,” he added. “It is the analytical, every bit as much as the moral, ground that Occupy has taken. For the hard-headed facts suggest that, at the heart of the global financial crisis, were — and are — problems of deep and rising inequality.”

Mr Haldane concluded by telling the activists that they had helped bring about nothing less than a new financial order. “If I am right and a new leaf is being turned, then Occupy will have played a key role in this fledgling financial reformation,” he said. “You have put the arguments. You have helped win the debate.”

In the text of his speech distributed by the Bank last night, Mr Haldane made no reference to the techniques employed by the Occupy protesters. The occupation of St Paul’s last year was controversial, and led to claims that the protesters were despoiling the cathedral’s grounds.

The protest ended after the Corporation of London won a legal order allowing the activists to be evicted.

Earlier this month, members of the group marked the first anniversary of the St Paul’s protest by entering the cathedral during a service and chaining themselves to the pulpit.

Source: http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/9641806/Occupy-protesters-were-right-says-Bank-of-England-official.html