Perhaps most people have never heard of Jaime Caruana), the former Spanish bank president is currently the helm of Bank on International Settlements (BIS); few people understand how important the BIS, a group composed of 58 central banks of countries and some internationally influential banks, occupies a major important position in the global "central planning" financial system. The head of the "World Central Bank" recently issued a warning: Before the collapse of Lehman Brothers () the global financial system was "more fragile" in many aspects. What exactly happened? This time, can believe that BIS turns the tide?
In the 84th annual report of BIS held not long ago, Caruana gave an unknown bad omen when talking about the financial market: "The high stock market is still high and the serious disconnection between economic growth is beyond ignorance." He quoted the famous economist Keynes as saying: "Compared with the time when you have the ability to repay debts, the market will remain irrational for a longer time." The behavior of the financial market is completely out of economic reality, and at some point in the future, a market correction with a wide coverage will be unexpectedly encountered. Why did Caruana choose to issue such a declaration at this time?
Debt is "rising" and the stock market is "too excited" - the financial market is seriously out of touch with economic development
British Daily Telegraph columnist Ambrose Evans-Pritchard wrote an article pointing out that Caruana is very worried about the rising debt levels and the overly excited financial market sentiment. He warned that the current global economy is as vulnerable to the impact of the financial crisis as in 2007, especially in recent years, where debt ratios have continued to rise, and emerging markets have also been involved in this "fire pit", which has increased risks.
This is the president of the World Central Bank in 2009 that investors completely ignore the risks brought by monetary tightening in the process of greedily chasing profits. "These market participants seem to consider only a very narrow fraction of the possible outcomes. They believe that monetary policy will continue to be easing for a long time, and they require more assurances than what the heads of the central bank are willing to give."
Karuana pointed out that compared with the state during the 2008 financial crisis, the global financial system is much more fragile in many ways, with the debt ratio of developed countries rising by 20%, accounting for 275% of their gross product (GDP).
In terms of government bonds, according to statistics, since the last recession, the total global government debt has increased by 40%, while banks that are "too big to go bankrupt" (i.e., being included in the systemic important financial institution SIFI) collectively have expanded by 37%. The total scale of U.S. Treasury bonds is now as high as US$17.56 trillion, with an increase of more than US$10 trillion in ten years. BIS also acknowledged that the global derivatives bubble has grown to at least $710 trillion. (See the figure below for details)
Aes: Developed economies; EMEs: Emerging market economies
The last crisis was a large-scale financial imbalance and it has not been resolved. On the contrary, it has become even worse. During the post-crisis period, the total public sector debt of G7 economies rose by nearly 40 percentage points, accounting for 120% of GDP - a key factor behind the 20% increase in the debt-to-GDP ratio of developed countries.
Who will become the redeemer, BIS?
of course not. Most people don't know that this so-called "central bank among central banks" is secretly manipulating the global money supply. The unelected bank is headquartered in Basel, Switzerland and has branches in Hong Kong and Mexico. It does not require tax payments and is not subject to any national laws. Even Wikipedia admits: "BIS is not responsible to any single government agency."
BIS was established in May 1930 according to the Hague International Agreement. The original purpose was to properly handle the issue of war compensation in Germany after World War I. The initial member states were only central banks of the United Kingdom, France, Italy, Germany, Belgium, and Japan, as well as three major commercial banks in the United States. Now the scale has expanded to 58 central banks, with rights exceeding the US economy. Central banks of various countries have jointly built it into a key cornerstone of the emerging world economic system.
Every two months, these central bank leaders will gather in Basel to hold the "Global Economic Conference". Every decision made at the meeting will affect everyone on the earth, but except for the elite class represented by BIS, no one has the right to speak here.
1975, Georgetown University (Georgetown) Carroll Quigley, professor of history at University, has already predicted that BIS will stand at the "cross" of the global financial system in a paper titled "Trariness and Hope".
" Financial capitalist power has another far-reaching purpose, which is nothing more than establishing a secret, privately controlled world fiscal control system to control the political system and the world economy of each country. The system operates in a "feudal" way, relying on the concerted action of the World Central Bank, the leaders through frequent private meetings and then reaching secret agreements. The Bank for International Settlements, based in Basel, Switzerland, will be the culmination of the system, and the private bank jointly owned and controlled by the global central bank is their private company. "
Sadly, the global financial system that Quigley portrayed forty years ago is now "full blossoming". Every two months, the heads of the world central bank go to Basel to attend the "Global Economic Conference". The currency and economy they talk about are far more than academic discussions.
At this "round table", the countries represented by these people represent more than $51 trillion per year, accounting for three-quarters of the global output. These central bank governors regularly take the lead and "proposal" the global economy, but why is it unknown? Why can a non-elected central bank organization enjoy such great power without the national government? This is thought-provoking.
(translated from Zero Hedge)
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