In the gilded ballroom of Hyatt’s Savoy ballroom, World War D‘s opening speaker Dr Mark Faber delivered a blunt message: the old world order is over.
‘The US reached a peak in prosperity and influence in the world in the 1950s or 1960s,’ said Faber. But since the 70s the superpower has been locked into a cycle of bubbles, busts and growing debt.
Debt, and the way it has manipulated the global economy, was the main theme of Faber’s address.
‘There are some people who claim to be economists who will tell you debts do not matter,’ Faber told the packed ballroom.
But the real story is different…. Continue reading
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.
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
The Swiss-based ‘bank of central banks’ says a hunt for yield is luring investors en masse into high-risk instruments, “a phenomenon reminiscent of exuberance prior to the global financial crisis”.
This is happening just as the US Federal Reserve prepares to wind down stimulus and starts to drain dollar liquidity from global markets, an inflexion point that is fraught with danger and could go badly wrong.
“This looks like to me like 2007 all over again, but even worse,” said William White, the Bank for International Settlement’s former chief economist, famous for flagging the wild behaviour in the debt markets before the global storm hit in 2008. Continue reading
When you print money, the money does not flow evenly into the economic system. It stays essentially in the financial service industry and among people that have access to these funds, mostly well-to-do people. It does not go to the worker. I just mentioned that it doesn’t flow evenly into the system. Continue reading