RSS Output
French    German    Spain    Italian    Arabic    Chinese Simplified    Russian

Letters by a modern St. Ferdinand III about cults

Gab@StFerdinandIII - Plenty of cults exist - every cult has its 'religious dogma', its idols, its 'prophets', its 'science', its 'proof' and its intolerant liturgy of demands.  Cults everywhere:  Islam, the State, the cult of Gay and Queer, Marxism, Darwin and Evolution, 'Science', Globaloneywarming, Changing Climate, Abortion....a nice variety for the human-hater, amoral, anti-rationalist to choose from.  It is so much fun mocking them isn't it ?

Tempus Fugit Memento Mori - Time Flies Remember Death 

Back     Printer Friendly Version  

Bookmark and Share

Friday, February 14, 2014

Central Banks, debt and future economic implosions

Little from 2008 has changed...in many ways much has worsened

by StFerdIII

 

===

An excellent article in the Telegraph on the dangers to the current world wide political-economy. Link

Contrary to MSM-Central Bank rhetoric, we are actually worse off than in 2007. Stocks and housing markets are up solely due to easy money; negative real rates and debt.

Below is excerpted. “The BIS enjoys great authority. It was the only major global body that clearly foresaw the global banking crisis, calling early for a change of policy at a time when others were being swept along by the euphoria of the era.”

====

The Swiss-based `bank of central banks’ said a hunt for yield was luring investors en masse into high-risk instruments, “a phenomenon reminiscent of exuberance prior to the global financial crisis”.

....“This looks like to me like 2007 all over again, but even worse,” said William White, the BIS’s former chief economist, famous for flagging the wild behaviour in the debt markets before the global storm hit in 2008.

All the previous imbalances are still there. Total public and private debt levels are 30pc higher as a share of GDP in the advanced economies than they were then, and we have added a whole new problem with bubbles in emerging markets that are ending in a boom-bust cycle,” said Mr White, now chairman of the OECD’s Economic Development and Review Committee.

...Mr White said the five years since Lehman have largely been wasted, leaving a global system that is even more unbalanced, and may be running out of lifelines. “The ultimate driver for the whole world is the US interest rate and as this goes up there will be fall-out for everybody. The trigger could be Fed tapering but there are a lot of things that can go wrong. I very am worried that Abenomics could go awry in Japan, and Europe remains exceedingly vulnerable to outside shocks.”

Mr White said the world has become addicted to easy money, with rates falling ever lower with each cycle and each crisis. There is little ammunition left if the system buckles again. “I don’t know what they will do: Abenomics for the world I suppose, but this is the last refuge of the scoundrel,” he said.”

Share of high risk leveraged loans now greater than 2007

 

Mr Borio said nobody knows how far global borrowing costs will rise as the Fed tightens or “how disorderly the process might be”.


Article Comments:

Related Articles:

Cult of more Debt

2/20/2016:  Real world Inflation and currency destruction.

2/6/2015:  $200 Trillion in Debt World-wide. Keynesian theology leading to a future disaster.

11/1/2014:  Cult of Central Banks. Fraud, distortions, spending, bubbles.

8/7/2014:  Nixon's sorry legacy - a systemic implosion, from real inflation and currency devaluation.

7/20/2014:  Mackay's 'Madness of Crowds' and the Tulip mania of 1636

7/17/2014:  Thomas Mackay, 'Extraordinary Popular Delusions and the Madness of Crowds” Ch. 1

7/10/2014:  Cult of bubbles, government distortions and pollyanna's - prices can only go up !

6/13/2014:  Cult of easy money - but no bubbles, issues or dislocations in finance or housing!

2/14/2014:  Central Banks, debt and future economic implosions

2/6/2014:  Real Estate is not the greatest investment

3/12/2013:  Governments just love the real estate bubble [er rational price increase...]

2/17/2013:  Modern Marxist and Statist absurdity: Only the Government creates anything.

1/18/2013:  Real debt levels are 5-10 times the size of the economy.

1/15/2013:  Bankruptcy is assured. Rhetoric to the contrary.

1/11/2013:  Waiting for Phase 2 of the Insolvency/Debt crisis.

6/5/2012:  Phase 2 of the 'Great Recession' about to begin.

12/20/2011:  REAL GDP vs. REAL Debt levels......

11/16/2011:  Real debt levels are 3-5 x the size of the economy

1/6/2010:  American debt, financial collapse and the ugly reality of Statism

3/27/2008:  Going bankrupt? Are Western states already there?