Sunday , 21 April 2024

Chilling Words From BIS On Current Global Financial Condition Setting Off Alarm Bells

When Jaime Caruana speaks, people should listen and the fact that he recently global-financial-crisiswarned that the global financial system is currently “more fragile” in many ways than it was just prior to the collapse of Lehman Brothers should set off all sorts of alarm bells. Who is Jaime Caruana? Why should we pay attention to what he has to say? What more does he have to say?  Why should we be concerned? Read on!

The above introductory comments are edited excerpts from an article* by Michael Snyder ( entitled The Head of the Central Bank of the World Warns That Another Great Financial Crisis May Be Coming.

The following article is presented courtesy of Lorimer Wilson, editor of (Your Key to Making Money!),  and (A site for sore eyes and inquisitive minds) and has been edited, abridged and/or reformatted (some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. This paragraph must be included in any article re-posting to avoid copyright infringement.

Snyder goes on to say in further edited excerpts:

Who is Jaime Caruana and why should you pay attention to what he has to say?

Jaime Caruana is General Manager of the Bank of International Settlements (BIS) which is an immensely powerful organization at the very core of our centrally-planned global financial system.

What more does Caruana have to say?

Speaking of the financial markets, Caruana has ominously declared that “it is hard to avoid the sense of a puzzling disconnect between the markets’ buoyancy and underlying economic developments globally” and he noted that markets can stay irrational longer than you can stay solvent“.  In other words, he is saying what I have been saying for so long: the behavior of the financial markets has become completely divorced from economic reality, and at some point there is going to be a massive correction.

Why would the head of ‘the central bank of the world’ choose this moment to issue such a chilling warning? Does he know something that the rest of us do not?

According to a recent article in the Telegraph by Ambrose Evans-Pritchard, Caruana is extremely concerned about rising debt levels and the current level of euphoria in the financial markets [saying that]:

  • The world economy is just as vulnerable to a financial crisis as it was in 2007, with the added danger that debt ratios are now far higher and emerging markets have been drawn into the fire as well…
  • Investors are ignoring the risk of monetary tightening in their voracious hunt for yield.
    • They are considering only a very narrow spectrum of potential outcomes…[and]
    • have become convinced that monetary conditions will remain easy for a very long time, and
    • may be taking more assurance than central banks wish to give.
  • the international system is, in many ways, more fragile than it was in the build-up to the Lehman crisis. Debt ratios in the developed economies have risen by 20 percentage points to 275pc of GDP since then.

Caruana is certainly correct to be warning us about these things:

  • the total amount of government debt in the world has grown by about 40% since the last recession, and
  • the “too big to fail banks” have collectively gotten 37% larger since that time.
  • the U.S. national debt has grown from about 10 trillion dollars to more than 17.5 trillion dollars, and even the Bank for International Settlements admits that
  • the global derivatives bubble has grown to at least 710 trillion dollars.

The massive financial imbalances that we were facing during the last crisis have not been fixed.  Instead, they have gotten much, much worse.

What is the Bank of International Settlements?

The Bank for International Settlements is the central bank of central banks and, as such, is an immensely powerful international organization that secretly controls the money supply of the entire globe. It is located in Basel, Switzerland with branches in Hong Kong and Mexico City and is, essentially, an unelected, unaccountable central bank of the world that has complete immunity from taxation and from national laws – “a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole… controlled in a feudalist fashion by the central banks of the world acting in concert, by secret agreements arrived at in frequent private meetings and conferences.” (Source: “Tragedy & Hope” by Carroll Quigley.)

The main purpose of the BIS is to guide and direct the centrally-planned global financial system.  Today, 58 global central banks belong to the BIS, and it has far more power over how the U.S. economy (or any other economy for that matter) will perform over the course of the next year than any politician does.

Every two months, the central bankers of the world gather in Basel for another “Global Economy Meeting”.  During those meetings, decisions are made which affect every man, woman and child on the planet, and yet none of us have any say in what goes on.

The Bank for International Settlements is an organization that was founded by the global elite and it operates for the benefit of the global elite, and it is intended to be one of the key cornerstones of the emerging one world economic system.

  • How do you feel about the fact that the central bankers of the world regularly gather to plot their next moves for the global economy?
  • Should an unelected group of central bankers that has no accountability to any national government really have so much power?
  • Please feel free to share what you think by posting a comment below.

The massive financial imbalances that we were facing during the last crisis have not been fixed.  Instead, they have gotten much, much worse, the behavior of the financial markets has become completely divorced from economic reality, and at some point there is going to be a massive correction.

Editor’s Note: The author’s views and conclusions in the above article are unaltered and no personal comments have been included to maintain the integrity of the original post. Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor.

* (Copyright © 2014 The Economic Collapse)

Stay connected!

Related Articles:

1. NOTHING Can Stop Coming Inflation: Bank for International Settlements Report

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. Read More »

3. A Crash of the Financial & Monetary System Seems Inevitable. Here’s Why & How to Prepare

A crash of the financial and monetary system seems inevitable. This presentation connects the dots between issues like currency wars, rigged markets, central bankers’ interventions, statistics manipulation, monetary mismanagement and financial repression in a factual way that is also easy to understand. Read More »

4. Monetary System Collapse Guaranteed – Here’s Why & How to Invest & Insure Your Wealth Accordingly

Our monetary system is guaranteed to collapse. The central banks prints money like there is no tomorrow. The governments spends like a drunken sailor and yet inflation is benign and interest rates sit at generational lows. Banks are gaining in profitability while their bad debts are being erased by rising asset prices. What’s not to like? Plenty! This article goes into the details of the money creation process to understand how and why this is happening, what the future implications will be and how to best invest to protect oneself from these eventualities. Read More »

5. Noonan: U.S. Debt & the Expected Movement in the Price of Gold & Silver

This article is a brief overview of how the U.S. government has come to be usurped by a banking cartel that controls government, media, corporations, etc. all because of their control over the money supply in the Western world and, understandably, why they are desperate to keep their Ponzi scheme from unraveling and being jettisoned in favor of gold and silver and concludes with a look at what the charts have to say about the future movement in both gold and silver. Read More »