Central bank body warns of Great Depression

[PeacePlan]

Central bank body warns of Great Depression

by Gill Montia

Story link: Central bank body warns of Great Depression

The Bank for International Settlements (BIS), the organisation that fosters cooperation between central banks, has warned that the credit crisis could lead world economies into a crash on a scale not seen since the 1930s.

In its latest quarterly report, the body points out that the Great Depression of the 1930s was not foreseen and that commentators on the financial turmoil, instigated by the US sub-prime mortgage crisis, may not have grasped the level of exposure that lies at its heart.

According to the BIS, complex credit instruments, a strong appetite for risk, rising levels of household debt and long-term imbalances in the world currency system, all form part of the loose monetarist policy that could result in another Great Depression.

The report points out that between March and May of this year, interbank lending continued to show signs of extreme stress and that this could be set to continue well into the future.

It also raises concerns about the Chinese economy and questions whether China may be repeating mistakes made by Japan, with its so called bubble economy of the late 1980s.

http://www.bankingtimes.co.uk/090620...at-depression/

[FindLiberty]

In the past, inflation usually only took ~99% value away over a person's lifetime.

I can see the end to inflation coming as it picks up speed as the first wave of baby boomers expect to retire soon and extract their retirement and healthcare benefits from the next generations... This, the growth of government, the war for global dollar hegemony and the quest to control oil supplies far exceed potential tax revenues.

Even the paper fiat money can't be printed up (out of thin air) fast enough, so we have been switching over to "electronic funds" (debt). Our "penny" coin is a quaint (pathetic) relic when one considers the dollar has lost most all of its value since 1913.

Once the fastest PCs that technology can produce can't add zeros fast enough to keep up with inflation, even the electronic funds system finally fails.

[jdmyprez_deo_vindice]

Obama or McCain = Great Depression

Only fitting we have an economic depression to go along with it!

[FindLiberty]

Obama or McCain = Great Depression

Only fitting we have an economic depression to go along with it!

Nice observation!