Once Greece defaults, what comes next?

The world is defenceless against the next financial crisis, warns BIS

Monetary policymakers have run out of room to fight the next crisis with interest rates unable to go lower, the BIS warns

The world will be unable to fight the next global financial crash as central banks have used up their ammunition trying to tackle the last crises, the Bank of International Settlements has warned.

The so-called central bank of central banks launched a scatching critique of global monetary policy in its annual report. The BIS claimed that central banks have backed themselves into a corner after repeatedly cutting interest rates to shore up their economies.

These low interest rates have in turn fuelled economic booms, encouraging excessive risk taking. Booms have then turned to busts, which policymakers have responded to with even lower rates.

Claudio Borio, head of the organisation’s monetary and economic department, said: “Persistent exceptionally low rates reflect the central banks’ and market participants’ response to the unusually weak post-crisis recovery as they fumble in the dark in search of new certainties.”

G3 real interest rates have never been so low for so long

“Rather than just reflecting the current weakness, they may in part have contributed to it by fuelling costly financial booms and busts and delaying adjustment. The result is too much debt, too little growth and too low interest rates.

“In short, low rates beget lower rates.”

The BIS warned that interest rates have now been so low for so long that central banks are unequipped to fight the next crises.

“In some jurisdictions, monetary policy is already testing its outer limits, to the point of stretching the boundaries of the unthinkable,” the BIS said.

Policymakers in the eurozone, Denmark, Sweden and Switzerland have taken their interest rates below zero in an attempt to support their economies, contributing to a decline in bond yields.

The decline of bond yields into negative territory is the “most unusual development” of the last year

Extraordinarily low interest rates are not a “new equilibrium” said Jaime Caruana, general manager of the BIS, rejecting the theory of so-called “secular stagnation” which some economists blame for the continued decline in global lending rates.

“True, there may be secular forces that put downward pressure on equilibrium interest rates … [but] we argue that the current configuration of very low rates is neither inevitable, nor does it represent a new equilibrium,” he said.

Mr Caruana said that interest rate hikes “should be welcomed”, as global economies have started to grow at close to their historical averages, and a slump in oil prices has provided the global economy with a boost.

The BIS report described the threat of a new bust in advanced economies as a “main risk”, with many reaching the top of the economic cycle.

The economies worst hit by the last crisis are now suffering the costs of persistent ultra-low rates, the organisation said, which could “inflict serious damage on the financial system”, sapping banks and weakening their balance sheets and their ability to lend.

And the continued misallocation of resources during busts prompted by central banks’s rock-bottom interest rates has also hammered productivity growth, the BIS said, as a prolonged reliance on debt had been used in its place.

Economic mismanagement has hampered productivity growth

This problem is compounded as the world’s populations continue to age, the organisation warned, making debt burdens harder to bear. Yet politicians have relied too much on temporary growth boosts by using debt, rather than making painful choices, said the BIS.

Mr Caruana said that during booms, workers and capital are shifted to slow-growing sectors, with a “long-lasting negative” impact on productivity growth. “Misallocated labour needs to move from these sectors to other parts of the economy,” he said.

The BIS said that the current turmoil in Greece typified the kind of “toxic mix” of private and public debt being used as a solution to economic problems, rather than making the proper commitment “to badly needed” structural reforms.

Mr Caruana said that policymakers must now focus on the supply side of the economy, introducing the right reforms, rather than continue to lean on debt which will inevitably undermine growth.

http://www.independent.ie/business/world/the-world-is-defenceless-against-the-next-financial-crisis-warns-bis-31336940.html

The Greek default begins –

Dominique Strauss-Kahn suggests temporary halt to Greek debt payments
“My proposal is the following: Greece should get no more new financing from the EU or the IMF but it should get a generous maturity extension and significant nominal debt reduction from the official sector”

Greece should become eligible for gradual nominal debt write downs” conditional on reforms on a similar model to that used by the IMF with “a number of developing countries”.

“Prolonging the current failed program, extend(ing) economic hardship beyond reason and prolong(ing) the agony and the divisive tensions between debtors and creditors would be disastrous.”

He concluded: “These are mistakes that Europe has experienced too many times in its history to repeat them.”

https://uk.news.yahoo.com/strauss-kahn-suggests-temporary-halt-203519636.html#HGXf0F2

TAP – Once the Euro starts disintegrating, the rot will continue all the way.  The unthinkable now becomes normality then.

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11 Responses to “Once Greece defaults, what comes next?”

  1. Men Scryfa says:

    Dominique Straus Khan. Isn’t he that Jewish Rapist finance guy that the ‘elite’ establishment wanted to run the IMF…?

    • Adam Lightwarrior Exposing the Secret Space Program says:

      So if hes a Jewish Rapist Finance guy that the establishment wanted to run the IMF….

      Does this mean weve seen evidence of good forces in this world intervening and acting to frame him and bring a cabal member down? Or infighting within the cabal just for power?

      Sadly I think the latter

    • Adam Lightwarrior Exposing the Secret Space Program says:

      Apologies yet another comment but im on a roll. While painting kitchen cornice just now I thought of this

      The Carolyn Hammlett blog I sent earlier. How demonic entities guard layers of programming, memories, alter personalities.

      it got me thinking. Does that mean our own precious good memories, from childhood or romance or whatever, good spiritual entities are in our minds and guarding those too? I wonder

  2. Lynn says:

    The IMF have created this…the banks have become casino’s and money launderers, this was planned all along. Cashless societies is the next big story living on credits. There is no money the whole con trick was built on IOU’s. The whole thing was set up to enslave us and our governments allowed it. Unregulated and rigged markets was an inside job. They were all in on it thats why they have got richer. Dirty dealings like drug trafficking,gun running, and people trafficking. They are the most corrupt powers on earth. We were lead into this all hidden by a bought off bunch of whores. Mps, Media, Corporations, big Pharma, oh and big Agriculture. All colluded together. It is one big club and we aint in it. We taxpayers just funded this. Well enjoy what you have left cos something big and stinky is coming down the pipe.

    • Adam Lightwarrior Exposing the Secret Space Program says:

      I know Lynn its bad and depressing. That’s why I keep going on about, hoping to recognise patterns and clues and evidence for, a positive benevolent powerful force on the surface of this planet too, as Resitance

      To be any kind of counterbalance to the cabal, im feeling they must have their roots in some kind of positive esoteric secret societies too, service to others. Just like the cabal has their secret societies, service to self

      Thoufhts like this give me optimism and keep me out of pessimism

  3. Lynn says:

    Adam we are going past the point of no return. The dark forces are simply too big and powerful.

    They have us hemmed in and know every move. This is war on humanity !! and however you want to believe that good men are out there, they are simply got rid of.

    We have all just woken up to this nightmare, whilst they have had centuries.

    We are dealing with a very evil powerfull form of espionage that has the world on its knees.

    We have become the target and they are past masters of Majik!!. I wish I had your optimism and hope. But we are all
    screwed.

    • Adam Lightwarrior Exposing the Secret Space Program says:

      I still say not so fast. Things would have been even worse on this planet for us all, many decades earlier, had there not been some powerful white resistance.

      I know it looks like foolish optimism but the cabal would want to make you demoralised and sap your hope and positive energy wouldn’t they? This is a Spiritual War. I think entity attachments and things going on in the etheric dimension right now, have a lot more exopolitical influence on us down here than we realise.

      The nasty nature of these fuckers means we would have been REALLY overrun decades ago to the point where we wouldn’t even be having the awareness to have this conversation now

      And what about the internet? If they were that all powerful got us hemmed in from every angle, do you think theyd have had the power to stop the rollout of this?

      I have read that white hats within the military , anti cabal resistance forces, worked to get it from an internal intranet, out for worldwide use.

      Remember that inside the military as in other power organisations, the occult is practiced. This will be white occult as well as black magic evil ones.

      These battles might have been going back centuries and 1000s of yrs.

      Remember Safe House with Ryan Reynolds. The agencies seem to have people like you and me in them too. Good factions. Evil factions too of course.
      I think it is all a horrendous Byzantine Macchiavellian compartmentalised nightmare of white hats and black hats

      yes theres no doubt its a battle. But it cant be as ominous as you feel it is, it cant be. Otherwise we should all prepare to kill ourselves soon in that case before really bad things happen. I don’t buy that Lynn. Please stay positive we need your positive mental energy in this Spiritual |War

      • Adam Lightwarrior Exposing the Secret Space Program says:

        I will add one more thing lynn and again it doesn’t detract from the positive facts I left in previous message

        Yes I made good arguments I think that have truth in them, hit on truth, about internet and white hat societies etc.

        I will also say, theres something else at play. We talk about it on Tapblog

        its very clear this cabal intends, has intended, to let all of us awaken to what theyre doing. 1980s illuminati card game burning twin towers and pentagon. 1999 Matrix Neo passport expiry and issue date 911 and Bush speech. 2 examples there are more, plus im sure now they’ve actually been leaking truths themselves in media, during the 2000s, but their strategy must be give truths but enough other disinfo to fuck everyone up and create fear and confusion. Nevertheless they always planned to preannounce, then post 911 reveal themselves

        Where am I going with this whats my point?
        I don’t think this is to fulfil guidebook prophecies. I could be wrong though
        Instead, I think all this is to PREEMPT guidebook prophecies

        Im saying Lynn theres some event coming that’s put of the illuminatis hands. And it might be a Divine event. It might be the good faction of the SSP forcing disclosure.

        Whatever it is, the cabal knew its coming and has them on the back foot and as a result they’ve pre-empted things and are doing their best through some thing that’s coming thst is OUT OF THEIR CONTROL

        That’s the essence what I want to say and I hope you can be positive

    • Adam Lightwarrior Exposing the Secret Space Program says:

      This isn’t meant in anyway to detract from my last comment

      Why would Infowars alex jones who we know is a cia zion person whipping trouble up, I suppose some awareness too but not in a helpful way, and of course always sparing elephants in the room

      Why would Infowars be leading the charge in articles and reports against Bill Gates and his vaccination programme? And Monsanto?

      The elephants subtletricks going on. Theres Dane Wiggington who seemed so genuine, alerting us to chemtrails. Yet hes working for them?

      I think the elephants get off and get their kicks actually revealing what theyre doing

  4. Tapestry says:

    Relax, guys. Markets were always rigged. It’s just a bit easier and quicker using computer/electronic communications technology than carrier pigeon, but it’s all been going on ever since. The difference this time is that people are now aware of the rigging, or gradually becoming aware.

    • Adam Lightwarrior Exposing the Secret Space Program says:

      These are unreal times were living in Henry. And yet, look out the window where I live. The trees and grass and sky and everything looks the same compared to the 1980s when I was little. Looking out the window. Getting in the car, going down to the local market town for shopping.
      Im thankful for this. Its what I like, we need a bit of stability. Things in this market town are the same more or less apart from supermarkets, for the 30 plus yrs ive been here on and off.

      And yet, these are unreal times. How come my mind, other peoples minds, have departed so much from just looking out the window and seeing normality like in the 1980s? Well I suppose 911 and blair and Monsanto and other things have something to do with it.
      I mean, even in the 1990s, even up to early 2001, it still felt like the 1980s.

      To end ill just give some potted insight that came to me today. I was reflecting on Mathew Mcconaughey in the tesserac in Interstellar, being the higher being trying to influence himself in our dimension now

      And it came to me Henry. I reminisced today thinking back simply 5 yrs ago, what I was doing and going through. Thinking back and reminiscing, was actually like Mcconaughey looking through the bookcase. And I got a feeling not of sadness, but not far from it. And I realised what would I tell myself in 2010? It would be to chill out and not be so on edge fretting and worrying. Im much much improved today but still have various foibles and issues as everyone does.

      My relfections todays made me think about what about 2020? What will the 2020 Adam be telling the 2015 one?

      Its making me realise to fucking chill out, and become more integrated in myself, things will be ok. I must have been having spiritual help and protection all these years. lifes to be enjhoyed and have purpose and feel positive about

      I look forward to meeting my future wife, I can feel that’s on the cards

      Im going to message and email you a realisation I had about your Manila bank building you would walk around and got healed at. Leyline intersection I believe vortex point. But ill put that in another message another day
      goodnight Henry

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