BIS warns global economy risks crisis ‘relapse’

© AFP/File | BIS chief economist said central banks around the world had been administering “powerful medicine” to counter the effects of the 2008 crisis, with “unusually and persistently low interest rates,” which came with some “inevitable” side effects

 

ZURICH (AFP) – The Bank of International Settlements said Sunday the global economy risked a “relapse” of the crisis that rocked it a decade ago, warning there was little “medicine” left to treat the patient a second time.

“Things look rather fragile,” BIS chief economist Claudio Borio told reporters in a conference call.

“There is little left in the medicine chest to nurse the patient back to health or care for him in case of a relapse,” he warned.

Here Is The IMF’s Global Financial Crash Scenario

 

Hidden almost all the way in the end of the first chapter of the IMF’s latest Financial Stability Report, is a surprisingly candid discussion on the topic of whether “Rising Medium-Term Vulnerabilities Could Derail the Global Recovery”, which is a politically correct way of saying is the financial system on the verge of crashing.

In the section also called “Global Financial Dislocation Scenario” because “crash” sounds just a little too pedestrian, the IMF uses a DSGE model to project the current global financial sitution, and ominously admits that “concerns about a continuing buildup in debt loads and overstretched asset valuations could have global economic repercussions” and – in modeling out the next crash, pardon “dislocation” – the IMF conducts a “scenario analysis” to illustrate how a repricing of risks could “lead to a rise in credit spreads and a fall in capital market and housing prices, derailing the economic recovery and undermining financial stability.”

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.

Robots poised to take over wide range of military jobs

Henrik Christensen, director of UC San Diego’s Contextual Robotics Institute. (K.C. Alfred / Union-Tribune)

 

The wave of automation that swept away tens of thousands of American manufacturing and office jobs during the past two decades is now washing over the armed forces, putting both rear-echelon and front-line positions in jeopardy.

“Just as in the civilian economy, automation will likely have a big impact on military organizations in logistics and manufacturing,” said Michael Horowitz, a University of Pennsylvania professor and one of the globe’s foremost experts on weaponized robots.

“The U.S. military is very likely to pursue forms of automation that reduce ‘back-office’ costs over time, as well as remove soldiers from non-combat deployments where they might face risk from adversaries on fluid battlefields, such as in transportation.”

Merkel warns Trump against protectionism

German Chancellor Angela Merkel called on Donald Trump to steer clear of protectionism and isolation. Photo: Reuters

 

‘There are more advantages … to moving forward together than when everyone resolves their problems for themselves’

German Chancellor Angela Merkel warned Saturday against protectionist tendencies of US President-elect Donald Trump, citing lessons learned in the 2008 global financial crash and stressing the need cooperation and united action.

Is the Global Economic Crisis About to Hit Germany?

Deutsche Bank looks tailor-made to give Angela Merkel a headache.

Germany’s biggest banks are in big trouble. That’s not exactly news. Before the financial crisis, Deutsche Bank’s share price was nearly €100 (us$135) a share. At the start of this year it was €21.45 ($24). This week, it hit its lowest value since 1973 and currently stands below €11. Now its situation is so dire that its name is trending on Twitter.

Since the 2008 financial crisis, Germany has been the rock of stability for Europe’s economy. It has weathered the storm with low unemployment, while economic crises upended entire political systems elsewhere in Europe. Now the banks at the heart of Germany’s economy seem on the brink of going under. The global economic crisis that began in 2008 could be about to hit Germany.

IMF issues warning to Eurozone: Lagarde says tackle financial crisis NOW or face RUIN

EUROPE’s economy is in a worse state than previously thought, shock figures revealed today, as the International Monetary Fund (IMF) urged the bloc to do more to tackle problems amid an increased risk of a global financial crisis.

Head of the Fund Christine Lagarde said action by world leaders to boost growth was becoming more urgent as threats were rising without decisive action.

…

Ms Lagarde urged the bloc to improve job training to tackle high youth unemployment and fight against low growth.

Beware 2018, when the next perfect banking storm may hit

Those looking for when the next financial crisis might be should set a reminder for January 1, 2018.

That’s when a host of new rules are scheduled to come into force that are likely to further constrain lending ability and prompt banks to only advance money to the best borrowers, which could accelerate bankruptcies worldwide. As with any financial regulation, however, the effects will start to be felt sooner than the implementation date.

“The Greatest Crash Of Your Life Is Just Ahead…” – Harry Dent Warns

 

Harry Dent, best-selling author and economist, has warned that the stock bubble in the U.S. today is the biggest in history and that the “greatest crash of your life is just ahead…”

Writing on his website EconomyandMarkets.com, Dent warned that

The story on Wall Street and CNBC continues to be that we’re in a correction and this is a buying opportunity. Even Warren Buffett joins the chorus of stock market cheerleaders for the skeptical public. Well, I agree with the skeptical public, not the experts here!

The bull market from early 2009 into May 2015 looks just like every bubble in history, and I’m getting one sign after the next that we did indeed peak last May.

I’ve been telling our Boom & Bust subscribers for months now that the dominant pattern in the stock is the “rounded top” pattern I show in the chart below: (see chart above)

Cash Withdrawal Limits and “Bank Holidays” Coming?

Collapsing commodities prices, erratic market turmoil and the bursting of Chinese bubbles are leading to a crisis in confidence in the economic system across the globe. The long-expected crisis to which the global financial and systemic crisis in 2008 may have been a mere prelude may be upon us.

Governments have no appetite for further bailouts. The EU states have passed legislation which will make the banks or rather unfortunate and unsuspecting depositors liable for the bank’s lending and speculative profligacy.

23 Nations Around The World Where Stock Market Crashes Are Already Happening

The collapse happened back in 2008, but the details don’t matter at this point. What matters is that you heed the warning coming from many reputable sources.

Whether it’s Global Geopolitics, the source of this article or The Telegraph, it doens’t matter. Like the source of this article, Global Geopolitics is serving as a watchman and using geopolitics as its compass to show what direction the events unfolding are taking us in. As history has shown us, all major crashes lead to war. The only difference this time being that this will be the beginning of events that has never happened since the beginning of mankind. We’re talking about the end of the world here, but an end of an era in world history and a change coming with it that will not bode well for the majority of people living on this planet — be it a third world war or global famine. One thing is clear, however, and that America will receive the worst of what’s to come and soon go to is destruction. The path the nation has been on in the last 10 years has changed the course irreversibly.

You can heed the warning, or you can scoff, laugh, mock and label watchmen conspiracy theorists, turn a blind eye and become absorbed by today’s American Shopping Mall Regime where everything is bliss because the stores remain open and you can still buy nice things. The latter has no bearing on this site whatsoever as the mission here is clear, and the message will remain steadfast.

The inevitable crash will happen and you can either get right with God — your only choice — and seeking shelter in him, or feel the wrath of what’s to come.

The choice is yours and you have nothing to fear should you choose God to be on your side.

 

You can stop waiting for a global financial crisis to happen.  The truth is that one is happening right now.  All over the world, stock markets are already crashing.  Most of these stock market crashes are occurring in nations that are known as “emerging markets”.  In recent years, developing countries in Asia, South America and Africa loaded up on lots of cheap loans that were denominated in U.S. dollars.  But now that the U.S. dollar has been surging, those borrowers are finding that it takes much more of their own local currencies to service those loans.  At the same time, prices are crashing for many of the commodities that those countries export.  The exact same kind of double whammy caused the Latin American debt crisis of the 1980s and the Asian financial crisis of the 1990s.

US is Gearing Up for Onrushing Economic Apocalypse

September and October… get used to hearing those two months.

What’s coming is imminent, but not the end of the world. Although, it will likely trigger serious civil unrest and even war.

Be prepared, be it financially or physically. The best advice, however, is to be right with the Lord.

 

America hurls all effort into preparing for September “apocalypse” as economic forecasts are becoming more and more intimidating, RT columnist Robert Bridge wrote.

According to Gallup’s recently released US Economic Confidence Index rating, confidence in the US economy among Americans dropped to its lowest level in July. Nothing to be surprised about, considering that each and every economy analyst deems it duty to share predictions on the country’s nearest future in a campfire scary story manner.

…

12 Signs That An Imminent Global Financial Crash Has Become Even More Likely

Did you see what just happened?  The devaluation of the yuan by China triggered the largest one day drop for that currency in the modern era.  This caused other global currencies to crash relative to the U.S. dollar, the price of oil hit a six year low, and stock markets all over the world were rattled.  The Dow fell 212 points on Tuesday, and Apple stock plummeted another 5 percent.  As we hurtle toward the absolutely critical months of September and October, the unraveling of the global financial system is beginning to accelerate.  At this point, it is not going to take very much to push us into a full-blown worldwide financial crisis.  The following are 12 signs that indicate that a global financial crash has become even more likely after the events of the past few days…

Why Europe Won’t Let Greece Go

Everyone’s talking about Europe’s economy. But at the heart of the crisis is a very different problem.

Greece is on the brink yet again. It has to pay the International Monetary Fund (imf) us$1.7 billion by the end of the month. And that’s the start of a gauntlet of loan repayments—it owes €10 billion by the end of September. Meanwhile, it has not agreed to a deal to get that money. With time running out, European officials are reportedly preparing for a catastrophe. “The Greek saga is finally reaching its climax, we think,” said Morgan Stanley’s head of foreign exchange strategy.

What will happen? Will Greece leave the euro? Will it submit to Europe’s bailout conditions? Will it trigger a financial crisis? I don’t know. But I do know that in the long term Greece is going to remain under the European Union’s influence.

Disaster Is Inevitable When The Two Decade-Old Stock Bubble Bursts

 

Six years after the Global Financial Crisis, the U.S. stock market continues to soar to new heights with nary a pullback or correction. In this piece, I will explain why the stock market is experiencing a new bubble that is actually another wave of the bubble that has existed since the mid-1990s.

A two-decade old bubble? Yes, you’ve read that correctly. Most people will consider this assertion preposterous, but the facts don’t lie. Though the U.S. stock market has been experiencing a bubble for two decades, it will not last forever. I believe that the ultimate popping of this bubble will have terrifying consequences for both investors and the global economy that is tied so closely to the stock market.

The SP500 stock index has more than tripled since its low in 2009, but that doesn’t mean that we are out of the woods. On the contrary, this is the calm before the storm.