Grexit?, BIS Warning, Chinese Market Crash & Systemic Risk Shake the Global Economy
By: GoldCore
GoldSeek.com
Monday, 29 June 2015
– Persistent low rates leave central banks with no ammunition to fight next crisis
– BIS says short-sighted central banks and governments contributed to current weaknesses
– Lack of policy options have forced some central banks to stretch “boundaries of the unthinkable”
– Bust in developed economies the main risk facing global economy
– Greece prepares to default
– China markets routed overnight
– Gold will be last man standing when currencies collapse
Greece embarked on capital controls as talks over the weekend between Tsipras’ leftist government and foreign lenders fell apart.
All banks and the Greek stock exchange are closed today. Greek citizens cued in long lines at ATMs or cash machines over the weekend and a run on the banks left most ATMs empty. There is a €60 limit on withdrawals from cash machines under strict capital controls. The ATMs will reopen tomorrow. Citizens are also lining up for petrol and food.
Central banks have run out of options to deal with the next global financial crisis the Bank of International Settlements (BIS) has warned in its annual report. Failure to make difficult policy decisions and raise rates throughout the “recovery” have left central banks with no stimulus options with which to juice the economy when the next downturn arrives.
The BIS, which is central bank of the central banks based in Basel, Switzerland, points to the short-sighted policies of governments and national central banks over the past few years who preferred to try keep their economies afloat using excessive debt rather than take unpopular steps to reform their economies.
The Rest…HERE
