Central bank body warns of Great Depression

June 9, 2008

Central bank body warns of Great Depressionby

by Gill Montia

Story link: Central bank body warns of Great Depression

The Bank for International Settlements (BIS), the organisation that fosters cooperation between central banks, has warned that the credit crisis could lead world economies into a crash on a scale not seen since the 1930s.

In its latest quarterly report, the body points out that the Great Depression of the 1930s was not foreseen and that commentators on the financial turmoil, instigated by the US sub-prime mortgage crisis, may not have grasped the level of exposure that lies at its heart.

According to the BIS, complex credit instruments, a strong appetite for risk, rising levels of household debt and long-term imbalances in the world currency system, all form part of the loose monetarist policy that could result in another Great Depression.

The report points out that between March and May of this year, interbank lending continued to show signs of extreme stress and that this could be set to continue well into the future.

It also raises concerns about the Chinese economy and questions whether China may be repeating mistakes made by Japan, with its so called bubble economy of the late 1980s.

http://www.bankingtimes.co.uk/09062008- ... epression/

I believ that we are heading for a GREAT DOWNFALL.
with us giving and giving, money to OTHER COUNTRYS,
and not helping the ones that are here in AMERICA and I
am talking about the AMERICAN citizens, not ILLEGALs.
The government is laughing their asses off now,
because of the cost of oil, to produce gas. Now, as I
recall, we have enough stuff, oil in the ground to last
for the next few hundred years. My uncle had oil, on his
land, he told me that their are enough resourses to last
for, a few thousand years. I am not smart, but, I have seen
some things. I have a friend who lives in death valley.
They have water wells and its hooked to the house.
Solar panels, to heat the house and your water. From the SUN, thats a NATURAL RESOURCE.
They have the windmills to power electricity, they have 100 of them,
all the friends are hooked up. They charge 150 a month.
Those are paid for within 1 year.
The windmills also go from the warmth of the sun, so that would
be also solar power, natural resource.
We have to many of the eviromentalist getting in the way of drilling for oil, hell the way I look at it GOD gave it to us, so we could use it,
it wouldnt be there for us, if he didnt want us to have it.
And the sun and wind, we need to use these items that GOD
gave us. Just like the food that we grow, its there for us, to have.


Koobster :lol:

I would say gold and precious metals is a safe place to invest if you have not already.

Ron Paul is right to encourage the US to go back to the gold standard. IMHO.