Moral Outrage
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Global financial warnings from the central bankers’ bank BIS

The global financial system is deepening and extending. This is the conclusion to emerge from the recently released annual report of the Bank for International Settlements (BIS), sometimes referred to as the central bankers’ bank.

One of the biggest dangers comes from the massive assistance provided by central banks to the banks and financial institutions through ultra-low interest rates and interventions into debt markets.

The extent of this intervention is indicated by the growth of central banks’ balance sheets to “an unprecedented size.” In response to the financial crisis, the US Federal Reserve and the Bank of England have both increased their assets from 8 percent of gross domestic product (GDP) to around 20 percent, while the increase in the Eurosystem is from 13 percent to more than 20 percent of euro area GDP.

This massive bailout has created new problems. The balance sheets are now exposed to greater risks—namely interest rate risk, exchange rate risk and credit risk—that could lead to financial losses. In other words, by moving in to bail out the major banks, the central banks themselves have been drawn into the crisis.

At the same time, having been bailed out, the banks, hedge funds and finance houses, are at it again, engaging in the same activities that sparked the crisis in 2007-2008. The BIS points to what it calls a “resurgence of financial innovation”—in reality, highly dubious and in some cases outright criminal financial manipulations.”

[ICFI]

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One Response to “Global financial warnings from the central bankers’ bank BIS”

  1. Gold is the worlds payment/Credit commodity, when Large Countries like China, Iran, Russia, pay for Oil, with Gold, this paves the way for credit based lending from Central Banks too – Countries with Equity in Gold Bullion Stored Supplies, in other words – no Gold no Credit, this is the debasement of the USD in motion.

    This inturn will have a sky rocketing effect on the Value of Gold, over other commodities, as Gold Will be viewed as Nessesity by Governments around the world. There is about to be a rush to Gold like has never been seen before, that will last for years to come.

    Gold Has been in a protracted “TIME PHASE” from the highs of approx -1900 >>> we will soon see the commencment of the “PRICE PHASE” off the current bargain prices to highs never dreamed of.

    There is no turning back human nature, the cast is proven over time, the World will remain burdend by debts in one form or another, and International Trade Settlements will be conducted in Gold, as the standard, period.


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