The world is defenceless against the next financial crisis, warns BIS.Oh what nonsense. This is impossible. We have all these rules and regulations in place to protect us. We have the United Nations, the World Trade Organization, and the European Union. It is taken care of. We have as many financial rules or regulations in place as there are people in the United States.
From the Telegraph:
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 fueled 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.”Nonsense. This cannot happen. The rules and regulations and international governing bodies were put in place to protect us from a financial crisis.