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Central Bank Prophet Fears Qe Warfare Pushing World Financial System Out Of Control

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http://www.telegraph.co.uk/finance/economics/11358316/Central-bank-prophet-fears-QE-warfare-pushing-world-financial-system-out-of-control.html

The economic prophet who foresaw the Lehman crisis with uncanny accuracy is even more worried about the world's financial system going into 2015.

Beggar-thy-neighbour devaluations are spreading to every region. All the major central banks are stoking asset bubbles deliberately to put off the day of reckoning. This time emerging markets have been drawn into the quagmire as well, corrupted by the leakage from quantitative easing (QE) in the West.

"We are in a world that is dangerously unanchored," said William White, the Swiss-based chairman of the OECD's Review Committee. "We're seeing true currency wars and everybody is doing it, and I have no idea where this is going to end."

..

He said the global elastic has been stretched even further than it was in 2008 on the eve of the Great Recession. The excesses have reached almost every corner of the globe, and combined public/private debt is 20pc of GDP higher today. "We are holding a tiger by the tail," he said.

He warned that QE in Europe is doomed to failure at this late stage and may instead draw the region into deeper difficulties. "Sovereign bond yields haven't been so low since the 'Black Plague': how much more bang can you get for your buck?" he told The Telegraph before the World Economic Forum in Davos.

"QE is not going to help at all. Europe has far greater reliance than the US on small and medium-sized companies (SMEs) and they get their money from banks, not from the bond market," he said.

More doom at the link.

Although QE won't help the economy, it will help the 1% and some of it might trickle down if the rich can't buy bigger glasses.

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ECB president Mario Draghi hopes that bond purchases will push money out into the broader economy through a "wealth effect",

As the central banks are so incompetent, delusional and self serving it's far more likely to turn out as before and push money out into the bloated few through a "poverty effect".

Edited by billybong

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http://

www.spiegel.de/international/business/the-man-nobody-wanted-to-hear-global-banking-economist-warned-of-coming-crisis-a-635051.html

William White predicted the approaching financial crisis years before 2007's subprime meltdown. But central bankers preferred to listen to his great rival Alan Greenspan instead, with devastating consequences for the global economy.

....

If White's model had been applied, it might have been possible to avoid the collapse of the financial system -- or at least soften the fall. But there was simply no support for his ideas in the singular, and highly secretive, world of central bankers.

Edited by billybong

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How much doom? I'm starting to get doom fatigue here just from the constant predictions.

It's only doom for those not wanting a reset. Deflation and asset corrections would be good for many. However, the haves are in charge and they will do their damdest to put off the day of reckoning and keep their assets protected....and that's basically 100% of Liblabcon and central bankers.

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How much doom? Long term stagnation with few personal economic opportunities, and one or some of the most stressed economies (Japan?) doing a Weimar, with political extremism and world war 3 just a spark away amongst tinder box regional politics

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But the main thing of course is that the boomers don't give their houses away for less than they're worth!

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It's only doom for those not wanting a reset. Deflation and asset corrections would be good for many. However, the haves are in charge and they will do their damdest to put off the day of reckoning and keep their assets protected....and that's basically 100% of Liblabcon and central bankers.

Quite correct crash monitor.

We seem to base our economies on a 'feeling of wealth' which as we know and love stems from the knowledge that your house is increasing in value (this is HPC after all so I'll mention it).

It's really simplistic but 'they' won't let it happen - by reducing interest rates to zero, printing money, printing more money, you name it.

As long as the BBC tell people they're fine then the feeling will persist and houses will stay static, maybe go down a bit then go up again - haven't we seen that when they were supposed to crash after 2008?

UKIP, Annonymous, Occupy, Stop-The-War, you name it will forever be silenced by the monster that is the BBC (don't need to mention how the organisation protected a certain high-profile presenter from the 70's - shudders).

They've even got a safe-bet plant in the shape of Russell BrandX so they can control the revolutionaries.

Quite a simplistic post really but I'm not worried about the economy. After 2008 nothing cannot be fixed with propaganda, money (printed) and other things similar.

Just walk down your nearest high street and look in the faces of the average person - they don't care and will go home to watch X-factor.

Incidentally, I was on Radio 2 years ago as an unofficial representative of HPC (Jeremy Vine phone in) under the name 'John from Worcester'. When the phone-in finished, a BBC producer rang and offered to film my life for a week or so "So they could represent someone renting who believed in HPC".

I knew then that there would be no crash and refused - they lady couldn't believe it "But you'll be on television!" "Thanks but no thanks". She was actually cross with me.

Does anyone remember me on radio 2? I said "There is a scheme designed to help 1st time buyers: it's called a house price crash!" Jeremy loved it.

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Incidentally, I was on Radio 2 years ago as an unofficial representative of HPC (Jeremy Vine phone in) under the name 'John from Worcester'. When the phone-in finished, a BBC producer rang and offered to film my life for a week or so "So they could represent someone renting who believed in HPC". I knew then that there would be no crash and refused - they lady couldn't believe it "But you'll be on television!" "Thanks but no thanks". She was actually cross with me. Does anyone remember me on radio 2? I said "There is a scheme designed to help 1st time buyers: it's called a house price crash!" Jeremy loved it.

Nothing really new in the world, is there ...

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