BIS: The most powerful bank in the world announces the crash
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 Spaniard Jaime Caruana is the Chief of the secretive Bank for International Settlements (BIS). The BIS fears that central banks are no longer able to avoid the crash in the global debt crisis. Ben Bernanke has supplied the evidence on Wednesday. (Photo: Reuters)
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 illusionthat the massive liquidity pumped into the market could solve the fundamental problems (more on the huge rise in debt - here ).
This clear words may have meant that Ben Bernanke and the Federal Open Market Committee, the Fed got cold feet. Instead, as expected, which is now formally announcing the end of the flood of money, the Fed has decided to just carry on as before.
If one is to the BIS experts believe that no single problem is solved.
All problems are only increasing.
Because the BIS but apparently does not know how they get the genie back in the bottle, it pays to listen to those who were part of the system - but now have no official functions and therefore more able to find clear words.
The former chief economist of the Bank for International Settlements (BIS), William White, was also reported to be parallel to the BIS word.
His statements are nothing more and nothing less than an announcement of the big crash.
White warned in unusually clear form of a huge, global credit bubble.
The share of "leveraged loans" or the extreme form of credit risk by mid-2013 at an all time high of 45 percent. This is ten percentage points higher than at the height of the financial crisis in 2007. A year later, in September 2008, Lehman Brothers went bankrupt.
Thus, the current situation is much more dangerous than before the Lehman bankruptcy.
"All previous imbalances are still there. Total public and private debt is 30 percentage points, as measured by the gross national product of developed countries. And we have a whole new problem with bubbles in emerging markets, which will end in aboom-bust cycle, "William White writes in the British Telegraph .
Cause is the global hunt for high-risk financial products. The collective behavior remember the phenomenon of "exuberance" that led to the global financial crisis.
Is key, says White warns that no one knows how to climb the global borrowing costs, whether the U.S. central bank tightened its monetary policy, or "how the process may be disordered, and the challenges to be prepared."
This means: It is an illusion to believe that the market would remain liquid under stress. The BIS is concerned for some time about the runaway development, only a few months BIS chief Jaime Caruana had warned of a serious crisis ( here ).
Remarkably, criticized the BIS, which is also often described as a bank for central banks, which clearly inadequate actions of the central banks. In particular, the BIS took the Governor of the Bank of England, Mark Carney and his colleagues, ECB chief Mario Draghi ago.
Trying to certain "guidelines" ("forward guidance") to define, to maintain long-term government bond yields low, either alone rhetoric that essentially failed. "There are limits to how far the good communication can control markets. These limits are too obvious, "said Claudio Borio, responsible for research and development at the BIS.The guidelines consist of the ECB's announcement, unlimited to buy government bonds (OMT). The Fed and the Bank of England had their gekopppelt measures the number of unemployed.
In the annual report 2012/2013, the BIS held the debt sustainability of the industrial countries as desolate and insisted on a rapid debt reduction.
To what consequences it leads, if the developed countries do not get the debt under control, it is clear by the example of the United States: Provided, that Rendit level of U.S. government debt grows over the entire term of three percent, so should investors in these bonds a accept loss of over a trillion dollars in purchasing.
In Italy, France, Great Britain and Japan about the losses between 15 and 35 percent of gross domestic product in this case would constitute, the BIS warned in August of this year.
Another consequence is that central banks and banks were large stocks of U.S. government bonds to the most injured. They would therefore insolvent.
Previously, it was useful to take predictions seriously the BIS. The BIS had pointed out six years ago at the onset of the global financial crisis and the associated dangers.
Late last year warned Kaushik Basu, chief economist at the World Bank: "A debt wall coming towards us."
He was referring to the banks made available by the ECB about one trillion euro LTRO (longer-term refinancing operations). The ECB aims was for a "transmission belt of monetary policy" produce which could benefit in particular small and medium-sized enterprises in Southern Europe and thus to stop the euro crisis.
These are loans for banks with a three-year term, each of the end of 2014 and early 2015 due for redemption. Whether this is guaranteed, to what extent the loans from the banks were used and how and whether they will be paid back to the ECB, is completely transparent.
The chief economist of the World Bank, Kaushik Basu, said in this connection the fact that you had in 2014 and 2015, expect "another big shock" to the global economy over the years.
BIS and World Bank are the main global instances that determine the economic development of the world (more on this spooky braid - here ). Both banks to supervise jointly with the IMF, the theoretical task of the central banks.
In fact, however, the staff in the central banks consists of a combination ofeconomic researchers and investment bankers, including Goldman Sachs and Draghi, Carney coming from Goldman. Bernanke worked for Harvard, Stanford and Princeton.
Researchers and investment bankers generally have little idea of the real economy. Some are committed to the theory, the other the tangible interests of the elite world of investment banking. You have never worked even one day like normal people, the investor Marc Faber said.
With the unchecked flood of money the toxic cocktail of scientific theory and duration Party for speculators is now at its lees.
The Tages-Anzeiger in Zurich believes that Bernanke and his colleagues "prevented a global depression" by printing money would.
But:
"It's not them but managed to make a sustained recovery of the real economy to accomplish. In addition, the unconventional monetary policy has its price. The flood of money associated risk people's confidence in the currency. Although there is no evidence that inflation rises, so does the fear of inflation. The political pressure on central banks to close the floodgates again is, therefore, become very large. "
The problem is that central banks have before closing the locks seem more afraid of before the supposedly safe "business as usual".
The FT recently came to a radical conclusion: "The central banks have given up hope that they can bring the world financial system back in order." From the annual meeting of the Fed in Kansas, the newspaper took concludes with: "The world is a endless cycle of bubbles, financial crises and currency collapses be damn."Central banks have no tools to balance the global imbalances.
Hélène Rey of the London Business School in a working paper describes the consequences for Jackson Hole as "hopeless": The central banks could no longer control how the world economy developed. In a flood of money unleashed by the Fed global credit system, capital flows are no longer to control. Even with flexible exchange rates, the countries of the world lose the opportunity to be masters of their own destiny. The only solutions, not expected from the Rey that the world would accept it, would be the imposition of global capital controls or total control of the U.S. Federal Reserve over the global economy.
It would be illegal if the Fed would leave its policy to the developments in other states.
However, all other solutions are unlikely: There is massive resistance to the voluntary return to the gold standard. The introduction of strict capital controls, strict regulation of banks and a waiver of the policy in all over the world into debt,as suggested by Rey will not take place in practice. The failure of the financial traction control ( here ) and the ban on short-selling ( here ) show that the development is out of control.
The BIS knows that the markets and prepares for the worst.
"Batten down the hatches!" The recent decision by the Fed to print more money is therefore nothing else than the command, and thus the return to the primacy of national interests of America.
What will trigger this decision world, Americans can no longer influence.
From now following solutions apply: Everyone is each own neighbor! Save yourself if you can! Women, children and bankers first! More fuel to the fire!
We now have an admission of central banks that they can not stop the debt tsunami.
Just try one more thing: to reach a state where they can still say: "After us the deluge"
But just this race is tight, very tight.
http://translate.google.com/translate?depth=1&hl=de&ie=UTF8&nv=1&prev=_t&rurl=translate.google.de&sl=de&tl=en&u=http://deutsche-wirtschafts-nachrichten.de/2013/09/19/biz-die-maechtigste-bank-der-welt-kuendigt-den-crash-an/
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 Spaniard Jaime Caruana is the Chief of the secretive Bank for International Settlements (BIS). The BIS fears that central banks are no longer able to avoid the crash in the global debt crisis. Ben Bernanke has supplied the evidence on Wednesday. (Photo: Reuters)
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 illusionthat the massive liquidity pumped into the market could solve the fundamental problems (more on the huge rise in debt - here ).
This clear words may have meant that Ben Bernanke and the Federal Open Market Committee, the Fed got cold feet. Instead, as expected, which is now formally announcing the end of the flood of money, the Fed has decided to just carry on as before.
If one is to the BIS experts believe that no single problem is solved.
All problems are only increasing.
Because the BIS but apparently does not know how they get the genie back in the bottle, it pays to listen to those who were part of the system - but now have no official functions and therefore more able to find clear words.
The former chief economist of the Bank for International Settlements (BIS), William White, was also reported to be parallel to the BIS word.
His statements are nothing more and nothing less than an announcement of the big crash.
White warned in unusually clear form of a huge, global credit bubble.
The share of "leveraged loans" or the extreme form of credit risk by mid-2013 at an all time high of 45 percent. This is ten percentage points higher than at the height of the financial crisis in 2007. A year later, in September 2008, Lehman Brothers went bankrupt.
Thus, the current situation is much more dangerous than before the Lehman bankruptcy.
"All previous imbalances are still there. Total public and private debt is 30 percentage points, as measured by the gross national product of developed countries. And we have a whole new problem with bubbles in emerging markets, which will end in aboom-bust cycle, "William White writes in the British Telegraph .
Cause is the global hunt for high-risk financial products. The collective behavior remember the phenomenon of "exuberance" that led to the global financial crisis.
Is key, says White warns that no one knows how to climb the global borrowing costs, whether the U.S. central bank tightened its monetary policy, or "how the process may be disordered, and the challenges to be prepared."
This means: It is an illusion to believe that the market would remain liquid under stress. The BIS is concerned for some time about the runaway development, only a few months BIS chief Jaime Caruana had warned of a serious crisis ( here ).
Remarkably, criticized the BIS, which is also often described as a bank for central banks, which clearly inadequate actions of the central banks. In particular, the BIS took the Governor of the Bank of England, Mark Carney and his colleagues, ECB chief Mario Draghi ago.
Trying to certain "guidelines" ("forward guidance") to define, to maintain long-term government bond yields low, either alone rhetoric that essentially failed. "There are limits to how far the good communication can control markets. These limits are too obvious, "said Claudio Borio, responsible for research and development at the BIS.The guidelines consist of the ECB's announcement, unlimited to buy government bonds (OMT). The Fed and the Bank of England had their gekopppelt measures the number of unemployed.
In the annual report 2012/2013, the BIS held the debt sustainability of the industrial countries as desolate and insisted on a rapid debt reduction.
To what consequences it leads, if the developed countries do not get the debt under control, it is clear by the example of the United States: Provided, that Rendit level of U.S. government debt grows over the entire term of three percent, so should investors in these bonds a accept loss of over a trillion dollars in purchasing.
In Italy, France, Great Britain and Japan about the losses between 15 and 35 percent of gross domestic product in this case would constitute, the BIS warned in August of this year.
Another consequence is that central banks and banks were large stocks of U.S. government bonds to the most injured. They would therefore insolvent.
Previously, it was useful to take predictions seriously the BIS. The BIS had pointed out six years ago at the onset of the global financial crisis and the associated dangers.
Late last year warned Kaushik Basu, chief economist at the World Bank: "A debt wall coming towards us."
He was referring to the banks made available by the ECB about one trillion euro LTRO (longer-term refinancing operations). The ECB aims was for a "transmission belt of monetary policy" produce which could benefit in particular small and medium-sized enterprises in Southern Europe and thus to stop the euro crisis.
These are loans for banks with a three-year term, each of the end of 2014 and early 2015 due for redemption. Whether this is guaranteed, to what extent the loans from the banks were used and how and whether they will be paid back to the ECB, is completely transparent.
The chief economist of the World Bank, Kaushik Basu, said in this connection the fact that you had in 2014 and 2015, expect "another big shock" to the global economy over the years.
BIS and World Bank are the main global instances that determine the economic development of the world (more on this spooky braid - here ). Both banks to supervise jointly with the IMF, the theoretical task of the central banks.
In fact, however, the staff in the central banks consists of a combination ofeconomic researchers and investment bankers, including Goldman Sachs and Draghi, Carney coming from Goldman. Bernanke worked for Harvard, Stanford and Princeton.
Researchers and investment bankers generally have little idea of the real economy. Some are committed to the theory, the other the tangible interests of the elite world of investment banking. You have never worked even one day like normal people, the investor Marc Faber said.
With the unchecked flood of money the toxic cocktail of scientific theory and duration Party for speculators is now at its lees.
The Tages-Anzeiger in Zurich believes that Bernanke and his colleagues "prevented a global depression" by printing money would.
But:
"It's not them but managed to make a sustained recovery of the real economy to accomplish. In addition, the unconventional monetary policy has its price. The flood of money associated risk people's confidence in the currency. Although there is no evidence that inflation rises, so does the fear of inflation. The political pressure on central banks to close the floodgates again is, therefore, become very large. "
The problem is that central banks have before closing the locks seem more afraid of before the supposedly safe "business as usual".
The FT recently came to a radical conclusion: "The central banks have given up hope that they can bring the world financial system back in order." From the annual meeting of the Fed in Kansas, the newspaper took concludes with: "The world is a endless cycle of bubbles, financial crises and currency collapses be damn."Central banks have no tools to balance the global imbalances.
Hélène Rey of the London Business School in a working paper describes the consequences for Jackson Hole as "hopeless": The central banks could no longer control how the world economy developed. In a flood of money unleashed by the Fed global credit system, capital flows are no longer to control. Even with flexible exchange rates, the countries of the world lose the opportunity to be masters of their own destiny. The only solutions, not expected from the Rey that the world would accept it, would be the imposition of global capital controls or total control of the U.S. Federal Reserve over the global economy.
It would be illegal if the Fed would leave its policy to the developments in other states.
However, all other solutions are unlikely: There is massive resistance to the voluntary return to the gold standard. The introduction of strict capital controls, strict regulation of banks and a waiver of the policy in all over the world into debt,as suggested by Rey will not take place in practice. The failure of the financial traction control ( here ) and the ban on short-selling ( here ) show that the development is out of control.
The BIS knows that the markets and prepares for the worst.
"Batten down the hatches!" The recent decision by the Fed to print more money is therefore nothing else than the command, and thus the return to the primacy of national interests of America.
What will trigger this decision world, Americans can no longer influence.
From now following solutions apply: Everyone is each own neighbor! Save yourself if you can! Women, children and bankers first! More fuel to the fire!
We now have an admission of central banks that they can not stop the debt tsunami.
Just try one more thing: to reach a state where they can still say: "After us the deluge"
But just this race is tight, very tight.
http://translate.google.com/translate?depth=1&hl=de&ie=UTF8&nv=1&prev=_t&rurl=translate.google.de&sl=de&tl=en&u=http://deutsche-wirtschafts-nachrichten.de/2013/09/19/biz-die-maechtigste-bank-der-welt-kuendigt-den-crash-an/
» How Erbil and Baghdad could fuel Iraq’s recovery
» The Council of Ministers decides to adopt the biometric card as proof
» Parliament ends discussion of the 2021 draft budget
» Parliamentary Finance: To vote on the budget next week .. This is the fate of the salary deduction
» Postponing Iraqi elections seen as an opportunity for Kadhimi to boost political fortunes
» Iraqi protest leaders launch political bloc ahead of elections
» Iran test-fires ballistic missiles on targets at sea
» American diplomat James Jeffrey: Trump’s model will continue in Iraq and Syria
» Foreign Ministry talks about its measures to remove Iraq from the list of money laundering
» 104k members already joined & we are in pre-launch. Please have a look, No Hype here
» Washington and Baghdad agree on Iraqi independence in the energy field
» The presidencies of Iraq recommend dissolving parliament
» Iraq to Participate in Buna Payment Platform
» Finance Minister: We will take a package of measures to reduce the effects of devaluation
» US piles pressure on Iran-backed militia commanders in Iraq with new sanctions
» The Iraqi parliament moves to change the price of oil in the budget
» Parliament keeps the debate on the draft budget open and sets a date for its holding
» Al-Halbousi stresses to Allawi the importance of limiting the repercussions of the financial situati
» Finance resolves the controversy and reveals the fate of the dollar exchange rate in the budget
» Parliament ends the second reading of the draft law on Iraq’s accession to an international protocol
» Saleh officially ratifies Iraq’s accession to the Paris climate agreement
» Article 140 postpones the resolution of constitutional amendments
» More than three-quarters. "Big" decline in central bank sales
» Finance Minister: We will take a package of measures to mitigate the effects of the devaluation in t
» Gorran MP alleges $78bn removed from Iraq since 2016, including $12bn from Kurdistan Region
» “Strict” measures and “serious” international monitoring awaiting early elections
» Al-Kazemi government takes 5 new decisions
» The presidencies, the Commission and UNAMI stress on increasing the biometric registration rate and
» The Three Presidencies: Reaching Radical Solutions Between the Federal Government and the Kurdistan
» The Parliamentary Finance committee to convene at the Prime Ministry's headquarters
» Al-Halbousi discusses with the Kurdistan Democratic delegation the budget and early elections
» The House of Representatives keeps its session going until tomorrow to complete the budget
» The high price of the dollar in Baghdad and its st
» An Iraqi forum discusses the impact of changing the exchange rate on the poor, destitute and low-inc
» Council of Representatives should vote on early election date: MP
» There will be no salary issues in Region, if Erbil, Baghdad abide by draft 2021 Iraqi Budget Law: MP
» Al-Kazemi and Al-Halbousi are discussing the budget and amending the Federal Court law
» Finance determines the changes it will make in the 2021 budget: changing the price of a barrel of oi
» Iraq maintains its ranking globally in gold reserves
» Foreign Ministry Spokesman: US sanctions against Hashd al-Sha'bi chief ‘insult to Iraq’
» Parliament’s agenda for next Monday’s session
» In details … Cabinet decisions for Saturday
» The Iraqi Parliament ends the first reading of the 2021 budget
» From John Matze CEO of Parler-
» Deleting 3 zeros or printing the 100 thousand dinars denomination .. Experts determine the best to f
» Exchange rate concepts
» I prayed everyday For Trump Pence
» Finance issues a statement on the effects of adjusting the dollar exchange rate
» Iraqi finance announces new developments at the exchange rate of the dinar
» Iran in no rush to see US return to nuclear deal: Khamenei
» America supervises the transfer and transfer of Iraqi funds. Pompeo sent a message to Baghdad and Er
» Facebook and Instagram ‘indefinitely’ ban Trump as Iraq issues him with arrest warrant
» The agenda of the parliament session for next Saturday
» The Central Bank sets special controls for exchange companies in the Kurdistan Region
» Parliamentary Finance officially receives the budget and announces the date of the parliament sessio
» Iraqi MP: What happened in America confirms that its Western democracy is fake
» Sairoun: The arrest warrant for Trump will be executed if he enters Iraq
» Central Bank's sales close the week with a big rise
» Three reasons for the central bank's decline in sales: this is what's going to happen next
» Agency: The devaluation of the Iraqi currency eases the liquidity shortage only temporarily
» Iraq, Struggling to Pay Debts and Salaries, Plunges Into Economic Crisis
» Adopting local currencies in trade relations
» Parliamentary Finance officially receives the budget and announces the date of the parliament sessio
» Iraqi PM adviser criticised for comments on Suleimani
» Iraq’ Barham Salih to build a strong Iraq
» Iraq will not be playground for international conflicts: PM Kadhimi
» Al-Kazemi announces a major US withdrawal from Iraq .. and affirms: The state’s decision will not be
» Iraq devalues dinar to boost economy, factory production
» For the third consecutive day, the Central Bank’s sales declined by more than 55%
» Economic expert: Two reasons weaken the sale of the dollar in the Central Bank of Iraq - urgent
» The launch of the “Buna” platform for intra-Arab payments
» US extends Iraq sanctions waiver for further 3 months
» Saudi Arabia to open airspace, borders to Qatar Kuwait
» No aircraft enter Iraq airspace without approval: air defense commander
» Al-Kazemi touring Baghdad as disarmament begins
» Iraq will bring 2 billion dollars from the sale of “48 million” barrels of oil: Baghdad will “raise”
» The central bank’s sales of dollars are falling to the lowest level
» Member of the Parliamentary Integrity Committee: 350 trillion dinars were smuggled out of Iraq
» Central Bank of Iraq sales hit first trade for new year
» Iraq concluded one of the “largest deals in history” to sell oil “in advance”!
» Central Bureau of Statistics: Iraq's economy is still rentier and oil contributes more than 57% of G
» Rafidain directs its branches by attracting investment companies and granting loans
» Soleimani anniversary marked in Baghdad with procession, candlelight vigil
» Iraqis await six important dates in 2021
» Iraq confirms $2bn oil prepayment agreement with Chinese firm
» Iran commander vows 'resistance' a year after Soleimani killing
» A new warning from Washington and Baghdad to Tehran
» Al-Kazemi challenges: Even if the reviews cost me my life, the reviews won’t stop me
» Will the devaluation of the dinar contribute to reviving the local industry?
» deputy sets the date for approving the budget and calls for it to be approved immediately without go
» Mid-January .. Iraq Applies The Electronic Payment System, Exporters And Importers
» Schneider Electric signs MoU for Electricity Distribution in Iraq
» Parliamentary Finance talks about attempts to withdraw the Iraqi dinar from the local markets
» Integrity warns against exploiting the repercussions of changing the price of the dollar and stresse
» U.S. Air Force B-52H Stratofortress bombers made a “deliberate appearance” in the Middle East on Tue
» He revealed when the 2021 budget will be discussed and the period for passing it in Parliament
» For the fourth consecutive day .. Central Bank of Iraq sales continue to decline
» Rouhani vows to cut US legs off region