Bank for International Settlements warns low interest rate policies may generate next global financial crisis

The international body representing central banks is warning its members that record low interest rates are generating conditions for another global financial crisis that may be worse than the first.

In its annual report, the Swiss-based Bank for International Settlements (BIS) expressed serious concern that global share markets had reached new highs and the interest rate premium for many risky loans had fallen.

“Overall, it is hard to avoid the sense of a puzzling disconnect between the markets’ buoyancy and underlying economic developments globally,” the bank wrote. Continue reading

ECB is delighted by the splendid prospect of deflation

The great mystery is why the voting public of debtor states continue to put up with an arrangement that ensures years of mass unemployment

If Europe’s elites seem nonchalant about the deflation threat staring them in the face, it is because they do not share the Anglo-Saxon and Japanese orthodoxy that letting it happen is an unforgivable policy failure.

The handful of officials calling the shots at the European Central Bank and Germany’s finance ministry — with applause from Italy’s hard-money “Bocconi Boys” and Spain’s “Austrian School” ultras — do not think deflation would be traumatic even if it were to happen. Some rather like the idea.

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The EU was HITLER’S idea and it proves Germany WON the Second World War, claims new book

While it may be hard to prove the book’s claims are correct, it would also be difficult to say that the EU is not a German project leading towards a United States of Europe. Every time the EU economy sinks, Germany gets richer and the only EU solution, as prescribed by the unelected German-led Troika, is pushing and forcing member states into further integration.

THE ‘fascist’ EU was inspired and designed by the NAZIS and is proof Hitler won the Second World War, an outrageous new book is claiming.

‘The EU: The Truth About The Fourth Reich – How Hitler Won The Second World War’ argues the single currency, the free market and even the phrase “United States of Europe” were all dreamt up by high ranking Nazis, including the Fuhrer himself.

It also claims the only country which benefits from the EU is Germany – just as Hitler planned.

A spokesperson for the Liberal Democrats – which its leader Nick Clegg describes as the “party of in” when it comes to the EU – dismissed the authors of the book as “peddling outlandish myths”.

The book, co-written by Daniel J Beddowes and Falvio Cipollini, says: “What is the EU for? Who really benefits? And the answer is of course Germany.  Continue reading

Global banks issue alerts on China carry trade as Fed tightens and yuan falls

Three of the world’s largest banks have warned that the flood of “hot money” into China is at risk of sudden reversal as the yuan weakens and the US Federal Reserve brings forward plans to raise interest rates, with major implications for global finance.

A new report by Citigroup told clients to brace for a second phase of the “taper tantrum” that rocked emerging markets last year, but this time with China at the eye of the storm.

“There’s a dangerous scenario in which the combination of rising US short-term rates and a more volatile RMB (yuan) could lead to a rather large capital outflow from China,” said the report, by Guillermo Mondino and David Lubin. Continue reading

Faber: We’re In a Worse Position Than 2008

A credit boom in countries such as China means that the world is in a worse position than it was in 2008 when a global financial crisis tipped the world into recession, Marc Faber, editor and publisher of The Gloom, Boom & Doom Report, told CNBC.

“If I am telling you that we had a credit crisis in 2008 because we had too much credit in the economy, then there is that much more credit as a percent of the economy now,” Faber said. Continue reading

BIS: The most powerful bank in the world announces the crash

The following is an article published originally in German, translated in the best way Google can offer. Because this is fresh off the German press, don’t expect it to hit American news outlets until another week or so — and likely not on the major national outlets.

When the BIS speaks, markets listen. This is essentially a jaw dropper of an announcement. They realize that all the QE heroin injections are not working and that there is no way to financially turn the American economy around — it’s mathematically impossible. They also know that the US financial leadership knows. The day of reckoning is near and it’s not just the US that will be affected and, although it will suffer the worst, the entire world over is going to go through a change unheard of in its entire history.

(Für die Lesern, dass deutschen sind, klicken Sie bitte auf dem original Link.)

The Bank for International Settlements (BIS) is the current situation on the financial markets as worse than before the Lehman bankruptcy. The warning of the BIS could be the reason why the U.S. Federal Reserve decided to continue indefinitely to print money: Central banks have lost control of the debt-tide and give up.

The decision by the U.S. Federal Reserve to continue indefinitely to print money (here ) might have fallen on “orders from above”.

Apparently, the central banks dawns that it is tight.

Very narrow.

The most powerful bank in the world, the Bank for International Settlements (BIS) has published a few days ago in its quarterly report for the possible end of the flood of money directly addressed – and at the same time described the situation on the debt markets as extremely critical. The “extraordinary measures by central banks” – aka the unrestrained printing – had awakened in the markets the illusion that the massive liquidity pumped into the market could solve the fundamental problems (more on the huge rise in debt – here ). Continue reading

Yuan now one of world’s most tradable currencies

Within the next few years, look for the yuan/renminbi to become one of the world’s ‘convertable currencies.’ There are only seven at the time being.

For the first time ever, the Chinese yuan is one of the world’s ten most frequently traded currencies, according to a Bank of International Settlements (BIS) survey.

The currency ranked ninth on the bank’s top-ten list, jumping eight places from the seventeen spot it held when the survey was last conducted three years ago. Continue reading

Bank of International Settlements Forges ‘Simple Plan’ to Avoid Bank Bailouts in Market Crash

The Bank for International Settlements has crafted a plan to inject major lenders with more cash, in the event of financial failure, while avoiding market chaos and the need to use taxpayers’ money.

According to BIS’ paper, the central bank forum laid out blueprints on how to recapitalise banks quickly and easily, while also allowing authorities to give an ironclad guarantee that insured depositors would not lose savings. Continue reading