Tag Archives: Bank for International Settlements

A BIS study warns that budgets of most advanced economies, excluding interest payments, "would need 20 consecutive years of surpluses exceeding 2 per cent of gross domestic product – starting now – just to bring the debt-to-GDP ratio back to its pre-crisis level".

For several years, and in particular the last 12 months, the IMF (International Monetary Fund) and the BIS (Bank for International Settlements) have been issuing warning after warning - as outlined below - that the biggest financial and social crash in history is coming. Are you listening? The warnings are all well thought out with cogent logic and are not to be ignored!

At the end of June, the BIS, or the central bank for central banks, produced its annual report, which is a must-read for investors interested in the global economy, macroeconomics, as well as gold, whose price is to a large extent shaped by macroeconomic factors. What does the report imply for the precious metals market?

A small group of entities — 147 financial institutions and central banks — exert a massive amount of influence over the international economy from behind the scenes. This “economic ‘super-entity’”controls the institutions of government and at the very center of this network is the Federal Reserve.

The magnitude of current private and government debt, coupled with massive unfunded contingent liabilities for promises of future services to their citizens, will prove to be impossible for many nations to fund. Massive inflation in the money supply will become the preferred vehicle to deflect the default monster and will result in vastly devalued currencies and price inflation as a prelude to default. Such action will be a desperate attempt to buy time to stave off the inevitable and will result in social unrest caused by persons whose comfortable lifestyle and elevated standard of living is about to disintegrate before their very eyes. Words: 1525