Central bank body warns of Great Depression
Gill Montia

Central Banker

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.

2 Comments »

To say that the Great Depression of the 1930s was not forseen is an outright lie and the international financiers. Read up on history.

“This [Federal Reserve Act] establishes the most gigantic trust on earth. When the President [Wilson} signs this bill, the invisible government of the monetary power will be legalized….the worst legislative crime of the ages is perpetrated by this banking and currency bill.” — Charles A. Lindbergh, Sr. , 1913

“From now on, depressions will be scientifically created.” — Congressman Charles A. Lindbergh Sr. , 1913

Comment by Robert — June 11, 2008 @ 6:58 pm

Well, the Bank for International Settlements should know. As THE central bank FOR the criminal central banks, one would think they’d have a cozy insider’s view of things. These private “central bank” banking cabals are leading the world to financial ruin. Here in the US, the Federal Reserve (rather Orwellian, as it is neither “federal” nor a “reserve”) has done nothing but loot the treasury, siphon off the nation’s wealth, cause the working people to take on a massive debt load, and exacerbate the boom and bust financial cycles. The best thing citizens of the world could do is burn the central banks to the ground and give the bankers a good coating of tar and feathers while horse-whipping them over the border. Control of a nation’s currency is control of that nation’s sovereignty.

Comment by John Gotham — June 11, 2008 @ 7:19 pm

http://www.bankingtimes.co.uk/