Jun 29

H/t reader squodgy:

“The BANKSTERS’ BANKSTERS admit they’ve *uc#ed up” and used all their ammunition to cover up decades of incompetence and this next crash will be a Tsunami.”


bis-bank-for-international-settlements-basel-switzerland
Just another Rothschild controlled ‘bee-hive’.

Central Bank of Central Banks Says “The World is Unable to Fight Next Global Crash” (SHFTplan, June 29, 2015):

According to the Bank of International Settlements (BIS), the shadowy “central bank of central banks,” the world as it stands is incapable of combating another global financial crash – a crash that there is every reason to think is coming.

That’s because the economy remains in the hands of the Federal Reserve and other central banks. The financial wizards in THIS VIDEO went so far to say that “we are all slaves to the central banks.” It wasn’t exactly hyperbole.

According to the BIS, central banks have already “used up their ammunition” by driving interests to below zero, freezing investment for the important stuff like production and infrastructure, and instead fueling huge bubbles for wonder kids on Wall Street to play in.

Now, everything is basically teetering on the edge until the music stops. According to the BIS, it will soon be time to pay the piper – as “persistent ultra-low rates” are poised to unleash destruction upon the economy like King Kong set loose on Manhattan:

The BIS report described the threat of a new bust in advanced economies as a “main risk”, with many reaching the top of the economic cycle.

The economies worst hit by the last crisis are now suffering the costs of persistent ultra-low rates, the organisation said, which could “inflict serious damage on the financial system”, sapping banks and weakening their balance sheets and their ability to lend.

And worse, the advanced countries will be unable to fight back against the serious consequences, according to their 2015 annual report :

• The world will be unable to fight the next global financial crash as central banks have used up their ammunition trying to tackle the last crises.

Central banks have backed themselves into a corner after repeatedly cutting interest rates to shore up their economies.

Central banks may have contributed [to the coming crisis] by fuelling costly financial booms and busts and delaying adjustment.”

In past years, the BIS has painted a clear picture of the bleak financial landscape brought on by central bank policy since the 2008 crisis.

.  .  .  .  .  .

It warned in 2013 that:

Fresh action from central banks to kick-start growth may do more harm than good, by distorting financial markets and jeopardising stability.

“Unfortunately, central banks cannot do more without compounding the risks they have already created.” (source)

.  .  .  .  .  .

In 2014, it found that central banks have failed to achieve a recovery, and are incapable of doing so:

Robust, self-sustaining growth still eludes the global economy… Central banks cannot solve the structural problems that are preventing a return to strong and sustainable growth.

“Most of all, central banks cannot enact the structural economic and financial reforms needed to return economies to the real growth paths authorities and their publics both want and expect.”

What central bank accommodation has done during the recovery is to borrow timeBut the time needs to be used wisely, as the balance between benefits and costs is deteriorating.” (source)

Given the unique insider position of the Bank of International Settlements in the global financial power structure, these are foreboding words to be met with mature concern. This is a tacit admission that the powers that be know the next big crisis is around the corner, and they are ready to watch us drown in it – this time, without reaching down to offer us up.

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3 Responses to “Central Bank of Central Banks Says “The World is Unable to Fight Next Global Crash””

  1. Marilyn Gjerdrum Says:

    They started the madness by taking $100 million(don’t know if that was borrowed also), and leveraging it into $100 Billion, a 1000:1 ratio. When this incredible debt base was spent about two years ago; there was zero growth in any of the real economies. So, they leveraged the leveraged funds; beyond quadrillions.

    The entire world economy has not created enough wealth to support such insane levels of debt. Greedy gut bankers have destroyed the global economy. Every Euro nation & US have debt excessive of 100% of GDP, Japan quickly following. Debt is the only product being bought and sold daily; nothing else is left.

    Once every cent of income is already owed elsewhere, no growth is possible. This is why schools and libraries are crumbling; no new freeways or developments. No resources, so governments play all kinds of games to mask growing poverty levels.

    As a result, nations can only continue by borrowing, and this is when greedy gut bankers take over & destroy everything with their greed. They end up slaves to interest payments that somehow never pare down the debt.

    Greece was the first to show the courage to say they’ve had enough; and the people of the world are cheering them. Others eventually will follow, the contraction of our entire economy will be painful…..I don’t see any source of recovery.

    In 1929, one could open a brokerage account with $100.00 and purchase $190.00 worth of stock on margin; 9:1 ratio. Seemed great until things slowed, and stocks collapsed. Margin calls started, people rushed to their banks to withdraw (or borrow) funds to cover everything. This started a run on the banks and failures resulted. Banks were terribly overextended with very limited funds to pay out. They had used depositors money to make their own deals…..It all imploded.

    But, the dollar was backed with gold, the US the largest lending nation in the world and our credibility was high. Today, it is the opposite. Causing the worst global economic collapse in 2002, and again in 2007-08 was bad. Not one thing was done to change a thing, and none of the wrong doers were fined, punished, nobody had to pay restitution…..and not one law was changed to clean up a thing. The greedy guts are in control, our credibility gone.

    After the crash, many laws were put into effect to see it didn’t happen again. Margin laws were changed, 50% was the highest anyone could margin. Bonds in those days were US government issued, and they were like cash, and remained that way for the next 40+ years; with a margin limit of 90%.

    Great until the advent of junk bonds. Congress put no conditions on them, treating them like government securities; a margin limit of 90%, regardless they could be worthless.

    Next came Mortgage backed securities; packaging an array of mortgages together, (debt) many of questionable stability. Investors wanted higher rates of return than available through conventional investments. Greedy guts took enough A rated debt to get ratings agencies to provide A+ status. Then filled them with B & C- rated debt to show an attractive rate of interest.

    They were sold by the millions on Wall Street. They also packaged together auto loans, credit card debt, business loans…everything to show high rates of return. They took every debt transaction in the markets, and sold them as asset securities on Wall Street. The major product sold on world markets this century is debt.

    Its obvious what this entails, the major product sold on western markets is debt: Debt listed as assets. It is finally starting to crack, and all of us will suffer. Cause: Greedy guts and fools running things.

    There are some countries that are not going to be badly hurt because their national debt to GDP is far lower than 100%. Their leaders work for the betterment of their national economies. Russia, China, India, Brazil, Saudi Arabia, Iran, South Korea, Mexico are just a few.

    I don’t have access to all the debt levels of all nations. I get my information from http://www.usdebtclock.org.
    Once I access the page, I click on ‘world’ at the upper left side of the page. The information there is eye opening.

    Remember the Chinese curse: May you live in interesting times.

    Going to be interesting over the next few months and years.

  2. Squodgy Says:

    Everything seems to be unravelling at once. I just don’t get it. The UK is actually in a worse mess numbers wise than France, but nothing is said, or if it is, it is only mumbled quietly.

    85% debt to GDP, unplayable, unserviceable etc etc. If interest rates do rise even the horizon disappears down a hole, but nothing is said.

    Of course the French crisis is caused by those pesky Ruskies ordering two helicopter carriers they knew the yanks would never allow to be delivered.
    So devious.
    http://www.zerohedge.com/news/2015-06-29/french-economy-dire-straits-worse-anyone-can-imagine-leaked-nsa-cable-reveals

  3. Marilyn Gjerdrum Says:

    Not only are the lies dominating; the change in the global economy is finally having an effect. China’s booming economy drove a huge demand for Brazil’s oil. Now that the boom balloon has popped, Brazil is experiencing a huge contraction in their economy. Brazil had been estimated as the future oil powerhouse of the world by 2020 for Latin America?? Now a 40% reduction in their budget, and too much debt……..

    The mumbling Stanley refers to is beginning to get louder and clearer….

    As all these economic sectors are forced to reduce their budgets, the drive for any products and services will slide. As more countries default, Greece, Puerto Rico, Argentina……Greece’s default puts German, French, Spanish and Italian countries at great risk; they hold 98% of Greek debt. None of them can begin to afford such losses as they face now. This will have a huge effect on the economic web all over the global economy, it will hurt everybody.

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