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Debtor Days Are Over As Bis Calls Time On World Credit Binge

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The world’s credit boom is beginning to show dangerous signs of unraveling, ushering in a period of fresh turmoil for the over-indebted global economy, the Bank of International Settlements has warned.

The globe’s top financial watchdog called time on the world’s debt binge, noting that debt issuance and cross border flows in emerging economies slowed for the first time since the aftermath of the global credit crunch at the end of last year.

With financial markets thrown into fresh paroxysms in 2016, oscillating between extremes of “hope and fear”, the over-leveraged world was finally approaching a day of reckoning, said Claudio Borio, the bank's chief economist.


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"Fiercely critical of the record low interest rates and mass quantitative easing schemes, the BIS said even the world's overburdened central bank’s could not stop the credit cycle from unwinding."

Self criticism?

The BIS Board of Directors1

Chairman: Jens Weidmann, Frankfurt am Main

Vice-Chairman: Raghuram G Rajan, Mumbai

Mark Carney, London

Agustín Carstens, Mexico City

Luc Coene, Brussels

Jon Cunliffe, London

Mario Draghi, Frankfurt am Main

William C Dudley, New York

Stefan Ingves, Stockholm

Thomas Jordan, Zurich

Klaas Knot, Amsterdam

Haruhiko Kuroda, Tokyo

Anne Le Lorier, Paris

Fabio Panetta, Rome

Stephen S Poloz, Ottawa

Jan Smets, Brussels

Alexandre A Tombini, Brasília

François Villeroy de Galhau, Paris

Ignazio Visco, Rome

Janet L Yellen, Washington

Zhou Xiaochuan, Beijing


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From the telegraph link ^

The European Central Bank is expected to unleash a fresh wave of stimulus into the moribund eurozone later this week, slashing its deposit rate further into negative territory and expanding QE.

The central banker policy equivalent of dementia.

Seemingly they don't even read their own reports issued by themselves - they're too busy unleashing a fresh wave of them trousering the money.

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Apparently the BIS report is as titled below.

How have central banks implemented negative policy rates?

by Morten Linnemann Bech and Aytek Malkhozov

6 March 2016

There is a link to the full text (14 pages - pdf) on the BIS web site.

Edited by billybong

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Banksters (and especially Central Banksters): What they DO, not what they say.

If they're making noises about clamping down on the credit boom, chances are they're getting ready to flood the market with even more credit.

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