"Behind each set of concerns lurks the common factor of highly accommodating financial conditions. Tail events affecting the global economy might at some point have much higher costs than is commonly supposed," it said.
The BIS said China may have repeated the disastrous errors made by Japan in the 1980s when Tokyo let rip with excess liquidity.
"The Chinese economy seems to be demonstrating very similar, disquieting symptoms," it said, citing ballooning credit, an asset boom, and "massive investments" in heavy industry.
Some 40pc of China's state-owned enterprises are loss-making, exposing the banking system to likely stress in a downturn.
It said China's growth was "unstable, unbalance, uncoordinated and unsustainable", borrowing a line from Chinese premier Wen Jiabao
In a thinly-veiled rebuke to the US Federal Reserve, the BIS said central banks were starting to doubt the wisdom of letting asset bubbles build up on the assumption that they could safely be "cleaned up" afterwards - which was more or less the strategy pursued by former Fed chief Alan Greenspan after the dotcom bust.
It said this approach had failed in the US in 1930 and in Japan in 1991 because excess debt and investment build up in the boom years had suffocating effects.
While cutting interest rates in such a crisis may help, it has the effect of transferring wealth from creditors to debtors and "sowing the seeds for more serious problems further ahead."
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/06/24/cnbis124.xml
Note: http://www.telegraph.co...
BIS Warns Of Great Depression Dangers From Credit Spree
Posted on Tuesday, June 26 at 08:27 by DiogenesContributed By
Topic
Article Rating
(0 votes)
Options
Stumble It!Comments
view comments in forum
Page 1
---
I gazed at every mirror on the planet, not one gave back my reflection - Jorge Luis Borges
Do you think that petrolieum jelly will be subject to that hydrocarbon tax?
---
The preceding comment deals with mature subject matter, however immaturely presented. Viewer discretion is advised.
Use the card with abandon; just make sure you are able to pay it off each and every month so as to stay off the interest bearing rotating charge account.
Ya gotta know what things cost you and decide whether it is worthwhile or not.
H.F. Wolff
"debt card" by using fiat cash to back it
the plan being as my life winds down to run up as much debt as possible and stiff those who stiff us
under the present system,fiat money,my labour has been stolen and my labour is private property stolen from me with fiat dollars
It is aid a man is worth his labour and under this system unions and the like are justified in with holding that labour untill they are dealt with justly
Banking is the biggrest fraud perped on us other than "law" which backs up monopoly money.
This is not opinion!
It is fact!
I respect the HA more than I do Banksters
I know who the HA is while the baksters hold themselves out as pillars of the community
---
I gazed at every mirror on the planet, not one gave back my reflection - Jorge Luis Borges
If I can pay it off at the end of the month, I can afford to pay cash up front. Especially as where I shop tends to be mom-and-pop places, and credit costs them profits.
---
The preceding comment deals with mature subject matter, however immaturely presented. Viewer discretion is advised.
As I have written in an earlier post this confidence is backed by the goods and services produced in the country. Get this relationship out-of-whack, ie. too many "dollars" chasing insufficient quantity of goods, the result would be inflation. Insufficient currency in circulation causes deflation and recessions. You can also mix 'n match these two with government or central bank screw-ups or government need for loans, as will be the USA case soon.
Some years ago I received a bunch of credit card applications with limits of $100,000.00 (one hundred thousand dollars!). Said to my wife half jokingly: "Let's get them all, max them out, and disappear".
Later I read an article supposedly written by a credit card company skip tracer. He said in effect that if you have nerves of steel and can hold out for say 5 years or so the credit card people will write off the loss.
H.F. Wolff
been there Loved it and it looks attractive again
---
I gazed at every mirror on the planet, not one gave back my reflection - Jorge Luis Borges
Ahem, would you care to elaborate?
Myself I wouldn't have a problem with this if the goods/services paid for with the card were not merchantable, ie. not suitable for purposes claimed.
H.F. Wolff
One has to be of a certain bent, mind set and have knowledge more than I had them to go against all the conditioning we receive. An examination of of the concepts of honour, honesty and obligation, scams all, in the world of business, from the top down. <br />
I believe we have to look at those areas of life that control our every moment and examine then for the truths the hold, if any and mostly they do not!<br />
Let’s take theft for example <br />
Banks who created the scam of fiat money have stolen from every one that has, or will deal with them by using a colossal confidence game. <br />
Now, If I choose to repay in kind have I cheated?<br />
And who have I cheated, the cheater?<br />
My labour has been stolen by the issues of fiat money, a money I must use if I am to do business <br />
A legal fraud in reality <br />
<br />
"A long habit of not thinking a thing wrong<br />
gives it a superficial appearance of being right,<br />
and raises a formidable outcry in defence of custom."<br />
-- Thomas Paine ('Common Sense')<br />
<br />
from <a href="http://www.buildfreedom.com/tl/tl07b.shtml">http://www.buildfreedom.com/tl/tl07b.shtml</a><br />
<br />
a good read for all<br />
this too!<br />
<a href="http://www.constitution.org/bouv/bouvier.htm">http://www.constitution.org/bouv/bouvier.htm</a><br />
<p>---<br>I gazed at every mirror on the planet, not one gave back my reflection - Jorge Luis Borges
Stupidity is Ubiquitous<br />
My first contention is that there's a great deal of crap or stupidity in human minds.<br />
<br />
"The only way to comprehend what mathematicians mean by Infinity is to contemplate the extent of human stupidity." -- Voltaire<br />
<br />
"Only two things are infinite, the universe and human stupidity, and I'm not sure about the universe." -- Albert Einstein <br />
<br />
"The two most common things in the universe are hydrogen and stupidity." -- Harlan Ellison<br />
<br />
"There is more stupidity than hydrogen in the universe, and it has a longer shelf life." -- Frank Zappa<br />
<br />
"There are more fools in the world than there are people." -- Heinrich Heine<br />
<br />
"Never underestimate the power of human stupidity." -- Robert Heinlein <br />
<br />
Next issue: Why is there so much crap or stupidity in human minds?<br />
<br />
Answer: There are two basic ways to earn a living:<br />
1(a). Grow your own food and produce everything you need to survive yourself.<br />
1(b). Produce valuable products and/or services and exchange them.<br />
2(a). Steal what you need through overt robbery and/or covert burglary and/or fraud.<br />
2(b). Dupe victims (force crap or stupidity into their minds) so they'll pay you without requiring that you produce anything of value.<br />
<br />
1. above could be called the "economic means to survival."<br />
2. could be called "the political means to survival."<br />
<br />
Politics as theft needs to be disguised and misrepresented as "it's for the children," etc. The suckers' minds need to be overwhelmed with stupidities so they'll buy this crap. A good starting point for removing political stupidities from your mind is 'The Law' by Frederic Bastiat.<br />
<br />
"You have to have a sense of humor if you follow politics. Otherwise, the sheer fraudulence of it all will get you down." -- Thomas Sowell<br />
In order to be rendered susceptible to political crap, young humans need to be forced into concentration campuses for dumbing them down, euphemistically called "schools." (One of the key policies of 'The Communist Manifesto' by Marx and Engels is free, compulsory state education for all children.)<br />
<br />
"Men are born ignorant, not stupid; they are made stupid by education." -- Bertrand Russell<br />
<br />
"The plain fact is that education is itself a form of propaganda -- a deliberate scheme to outfit the pupil, not with the capacity to weigh ideas, but with a simple appetite for gulping ideas ready-made. The aim is to make 'good' citizens, which is to say, docile and uninquisitive citizens." -- H.L. Mencken <br />
<br />
You can explore so-called "state education" further by reading the following books: <br />
<br />
'Compulsory Mis-education' by Paul Goodman <br />
'The Conspiracy of Ignorance' by Martin L. Gross <br />
'Dumbing Us Down' by John Taylor Gatto <br />
'If You Want to Be Rich & Happy Don't Go to School' by Robert T. Kiyosaki <br />
'The New Left' by Ayn Rand (Chapter 9 titled "The Comprachicos")<br />
<br />
See also Education and Compulsory Schooling.<br />
<br />
<a href="http://buildfreedom.com/stupidity/abolish_stupidity.html">http://buildfreedom.com/stupidity/abolish_stupidity.html</a><p>---<br>I gazed at every mirror on the planet, not one gave back my reflection - Jorge Luis Borges