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BIS annual report is frightening reading

Sean O'Grady

The BIS report is long, very long, and very frightening. You may not take much notice of them, but the Bank for International Settlements is the club of central bankers – the equivalents of Mervyn King round the world. You should pay attention, as they sit in the engine room of the world’s financial system. And, in a nutshell there message is this: if, as is not impossible, we undergo another banking crisis there are many governments in the world who will simply not be able to afford to rescue their banking systems like they did in 2008-09. Including Britain.

If that happens, I should add, it means frozen cash machines, collapse of payments systems and a slump. It is scarcely believable, but we really are running out of backstops. If the US and the IMF run out of cash we can hardly ask Mars to come in and rescue us. The second credit crunch may easily be harder than the first; in which case countries with solvent governments will be a more secure place to live. Sadly, that may not include Britain, which has big debts and an even bigger banking system.

Don’t say you weren’t warned…

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  • http://www.facebook.com/people/Jessica-Tyrrell/1372765309 Jessica Tyrrell

    lets hope its doesn’t get that bad- i might have to go back to the old fashion way, which is to bury your money under your mattress lol.

  • someofusknowthetruth

    The collapse of fiat currencies is inevitable and is not something to be frightened of, as such. The entire banking system is just a massive Ponzi scheme, in which money is created out of thin air in order to finance the destruction of the planet we live on. At the moment curriency collapse is being carried out by stealth -continuous inflation (actually continuous devaluation of money), so things cost twice as much every decade that passes. A more rapid collapse is very likely now that conventional oil extraction has peaked and deepwater extraction have proven to be false hope for proping up the system (along with extraction from tar sands -another environmental nightmare). After all, without energy nothing happens. And the world is now in a severe energy depletion predicament which will get rapidly worse.

    That won’t stop the idiots in charge from thinking up ways to squander what energy reserves remain, of course.


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