Schäuble Warns of Coming Economic Crisis

 

In his farewell interview for the Financial Times, Federal Minister of Finance Wolfgang Schäuble warned of a new global financial crisis predicated upon the Quantity of Money theory that the central banks had pumped trillions of dollars into the financial system that is creating a risk of “new bubbles”.  Indeed, many just do not comprehend what is going on and are blaming the new highs in share markets on concerns about the increased risks from the accumulation of more and more liquidity and the growth of public and private debt. Continue reading

Global Debt Bubble Understated By $13 Trillion Warn BIS

 

– Global debt bubble may be understated by $13 trillion: BIS
– ‘Central banks central bank’ warns enormous liabilities have accrued in FX swaps, currency swaps & ‘forwards’
– Risk of new liquidity crunch and global debt crisis
– “The debt remains obscured from view…” warn BIS

Global debt may be under-reported by around $13 trillion because traditional accounting practices exclude foreign exchange derivatives used to hedge international trade and foreign currency bonds, the BIS said on Sunday. Continue reading

The Monetary Crisis Cycle Comes in Two Flavours

 

QUESTION: Mr. Armstrong; I attended the Paris conference of the BIS when you were the keynote speaker. You delivered a forecast that was probably too far ahead for its time. You said the euro would go through and it would first drop but then peak with deflation in 2008 after the markets crash from 2007. You elaborated saying currency rises during a crash when people run to cash. You also said the euro would then decline for 13 years into 2021 before a new system will emerge.

That stuck in my mind and I watched it fall then rally into 2008 and the crash of 2007 you forecast some 10 years in advance. My question is simply this. You said, if I remember correctly, that the dollar would soar thereafter and we would see another monetary crisis as we did in 1985. Is this your Monetary Crisis Cycle you will reveal in Orlando?

I, and a few others from that conference, have bought tickets. I hope to shake your hand this time for a job well done for they would not have tried to stop you forecasting if you were like everyone else who are usually wrong. Continue reading

China facing full-blown banking crisis, world’s top financial watchdog warns

China has failed to curb excesses in its credit system and faces mounting risks of a full-blown banking crisis, according to early warning indicators released by the world’s top financial watchdog.

A key gauge of credit vulnerability is now three times over the danger threshold and has continued to deteriorate, despite pledges by Chinese premier Li Keqiang to wean the economy off debt-driven growth before it is too late.

Continue reading

China warning: Economy set for financial MELTDOWN amid soaring debt levels

CHINA is on course for a full-scale financial meltdown that could cause havoc across the globe, suggest early warning indicators tracked by the world’s central bank watchdog.

The seeds have been sowed for potential financial distress in the world’s second-largest economy, according to the Bank for International Settlements (BIS). Continue reading

“It’s Coming To A Head In 2016” – Why Bank of America Thinks The Probability Of A Chinese Crisis Is 100%

Some sobering words about China’s imminent crisis, not from your friendly neighborhood doom and gloom village drunk, but from BofA’s China strategist David Cui.

Excerpted from “2016 Year-Ahead: what may trigger financial instability“, a must-read report for anyone interested in learning how China’s epic stock market experiment ends. Continue reading

China and the ‘Three Warfares’

Next financial crash is coming – and before we’ve fixed flaws from last one

In case you missed it last week:

 

The next financial crisis is coming, it’s a just a matter of time – and we haven’t finished fixing the flaws in the global system that were so brutally exposed by the last one.

That is the message from the International Monetary Fund’s latest Global Financial Stability report, which will make sobering reading for the finance ministers and central bankers gathered in Lima, Peru, for its annual meeting. Continue reading

BIS Warns of ‘Major Faultlines’ In Global Debt Bubble

– BIS warns “unrealistic and dangerous to expect that monetary policy can cure all the global economy’s ills”

– Bank of International Settlements warns that recent turmoil is not caused by isolated incidents

– Debt levels are now so extreme they threaten the financial system

– Ultra low rates have led to mal-investment and bigger boom/bust cycles

– Emerging markets vulnerable to deeper crises

– ECB easy money may juice markets for a while but reckoning is coming

– BIS acknowledge that central banks rig markets

– Gold and silver protect against crises in financial system

In a stark warning, the Bank for International Settlements (BIS), the central bank of central banks, has said in its quarterly report that the turmoil that has shaken global stock markets in recent weeks showed how developed and emerging markets were exposed to the unwinding of financial vulnerabilities built up since the 2008 crisis. Continue reading

How the Global Financial Crisis Will Produce Europe’s 10 Kings

America’s banking crisis will reshape Europe financially—and politically.

One of the greatest prophecies in the Bible is about the union of European nations. More specifically, it’s about the political union of 10 European nations.

For decades, people in Europe have tried to forge a cohesive political union. To that end, they have created the present, loosely hinged 28-nation European Union. Yet Revelation 17 says there are going to be 10 kings there that will unite politically and form a real superpower: a modern-day Holy Roman Empire.

Bible prophecy also reveals that this European superpower will be led by a strong German leader who will essentially hijack the European Union. Continue reading

Germany’s Weidmann to head BIS

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The influential Bank for International Settlements is the coordinating body for the world’s most powerful central banks. It has elected the head of Germany’s central bank as its new chairman. Is a policy shift coming?

Germany’s central bank president Jens Weidmann will become the new board chairman of the Bank for International Settlements (BIS), the bank announced on Monday. Continue reading

Why Are So Many People Freaking Out About A Stock Market Crash In The Fall Of 2015?

In rare cases, 90% of an article or one in its entirety will remain posted. This is one of those cases.

 

Is the stock market going to crash by the end of 2015?  Of course stock market crashes are already happening in 23 different nations around the planet, but most Americans don’t really care about those markets.  The truth is that what matters to people in this country is the health of their own stock portfolios and retirement accounts.  There are a lot of people out there that are very afraid of what could happen if the money that they have worked so hard to save gets wiped out in a sudden financial collapse.  And right now there is an unprecedented amount of buzz about the potential for a giant stock market crash by the end of this calendar year.  In fact, I don’t think that I have ever seen more experts come out with bold predictions that a stock market crash will happen within a very specific period of time. Continue reading

Say A Little Prayer

Monthly Investment Outlook from Bill Gross

I’m not what you would call a “prayerful” type of guy. Even at 30,000 feet, when the air gets rough, I never invoke the “God” word, settling instead for promising myself that if I ever get back to terra firma, I will never fly again, which I promptly forget days or even hours later. It’s not that I’m a non-believer in prayer’s ultimate destination, but more of a cynical take on why the Lord would hand out party favors to everyone that asked, or to those that asked most intently.

Funny, too I think, about how I learned two different versions of the Lord’s Prayer: one – the Protestant litany – spoke to “forgiving our debts as we forgive our debtors”; the other – maybe a more traditional Catholic influenced version – substituted “forgive our trespasses as we forgive those who trespass against us.” The differences never much bothered me as I prayed less and sinned more into my teenage years, but later I got to thinking about it as I entered the bond market and began to contemplate the odds of paying and being paid, or trespassing and being trespassed against with other people’s money. Given a chance, I thought I would infinitely prefer forgiving a trespasser as opposed to a debtor. Continue reading

Trumpet Hour: BIS Says No More Lifeboats For Global Economy; Greece’s Roller Coaster Ride; and more.

 

The Trumpet Hour is a new radio program on kpcg.fm. Writers for theTrumpet.com discuss the most important news and why it’s important to you. This episode’s discussion includes:

  • The incredible warning issued by the Bank For International Settlements.
  • China’s imploding markets and what they mean for America.
  • Why China will never give up North Korea.
  • Greece’s economic roller coaster.
  • More about the nuclear negotiations with Iran. Continue reading

Greek Contagion Spreads As Several Italian Bank Stocks Failed To Open

This is how fragile the entire EU system is. If Greece sneezes, Italy coughs. The EU at best might be able to handle a Grexit, although that doesn’t look likely as stated here many times before. Look for the markets to go through a lot of turmoil but Greece is here to stay, whether its within the EU or a newly formed United States of Europe currently underway. Almost all experts agree it’s too strategically important to lose to the Sino-Soviet axis.

 

While things have normalized since the open thanks entirely to the SNB’s aggressive EUR-buying, CHF-selling intervention (good to see that central banks have read the BIS’ report and have learned from their prior intervention mistakes), earlier this morning we got a snapshot of what happens if and when the SNB, and then the ECB itself, finally lose control when as a result of the Greek crisis the contagion promptly spread a few hundred kilometers west to Italy where as the WSJ reported, “several Italian banks failed to start trading on Monday as fears over a Greek debt default induced many investors to shed peripheral stocks, including Italian, with banks suffering the most.Continue reading