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 Next Financial Crisis is Unfolding Now

Money Morning Members should know two things. First: the 2008 financial crisis was caused by a housing bubble, centered in the U.S., that radiated out through the rest of the world and almost destroyed the global financial system.

Second: The next financial crisis – which is starting to unfold as we speak – was caused by a commodities bubble centered in China that radiated out through the rest of the world and will cause enormous financial damage, threatening the global financial system.

Both crises were aided and abetted by central banks printing massive amounts of debt that can never be repaid. That leaves the world with three choices for how to deal with that debt – currency depreciation (which is why you should buy gold), inflation, and default. Continue reading

IMF Warns Next Financial Crash Is Only a Matter of Time

With interest rates at a 5,000-year low, are we really surprised that a crash is coming?

The International Monetary Fund (imf) is warning that a financial crisis is practically guaranteed, and it’s just a matter of time before it strikes. The organization’s newly released Global Financial Stability report is sobering reading. The flaws in the global financial system have not been fixed, it says.

It highlights soaring global debt, particularly in emerging markets. The implication is that we could see a repeat of the 1997 currency crisis also known as the “Asian Flu,” which saw massive currency devaluations, contractions in global trade, economic turmoil, and social instability.

But conditions are much more dangerous today than back then. Virtually the whole world is teetering on recession, the West and Russia are back in Cold War mode, the Middle East is engaged in actual war in Syria, and the world is more interconnected than ever—potentially making the transmission of financial diseases much quicker. Continue reading

Currency War: Dragging the World Toward World War III

https://images.thetrumpet.com/560419e0!h.355,id.12455,m.fit,w.640

 

Echoes of 1934 are thundering with increasing intensity.

In 1934, United States President Franklin Delano Roosevelt outlawed the private ownership of gold. After confiscating billions in bullion, Roosevelt shocked the world by revaluing it. The cost for an ounce of gold, previously set at $20.67, was suddenly $35. Overnight, Roosevelt devalued the dollar by 69 percent.

The president told the country that it was a radical effort to stimulate America’s economy. A cheaper dollar would make America’s exports less expensive and help American companies sell more products to the rest of the world, he said. More money would flow into America, and more jobs would be created.

It did those things. And it also marched the world another giant step closer to war. Continue reading

Dangerous Currency War Dragging World Toward World War III

https://images.thetrumpet.com/55d642f1!h.355,id.12221,m.fit,w.640

 

Echoes of 1934 are thundering with increasing intensity.

In 1934, United States President Franklin Delano Roosevelt outlawed the private ownership of gold. People who refused to turn their gold over to the government went to jail. With the same presidential order Roosevelt shocked the world by devaluing the dollar. The cost for an ounce of gold, previously set at $20.67, henceforth cost $35.

President Roosevelt told the country that it was a radical effort to stimulate America’s economy. A cheaper dollar would make America’s exports less expensive and help American companies sell more products to the rest of the world, he said. More money would flow into America, and more jobs would be created.

It did those things. And it also marched the world another giant step closer to war.

Continue reading