Advertise | Bookmark | Contact Us | E-Mail List |  | Update Page | UraniumSeek.com 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page 

 GoldSeek.com >> News >> Story  Disclaimer 
 
Latest Headlines

Bridging the ‘fourth turning’ with gold
By: Michael J. Kosares

Bitcoin: Landing Gear Engaged. Bottom Is Still a Process
By: Ryan Wilday

The Good News Economy
By: John Mauldin

Great News For (The Remaining) Gold Bugs: Gold AND Silver Futures Speculators Are Now Net Short
By: John Rubino

BIG TROUBLE BREWING AT THE BAKKEN: Rapid Rise In Water Production Signals Red Flag Warning
By: Steve St. Angelo

Nine Years. Is That Enough?
By: Arkadiusz Sieron

Gold Seeker Weekly Wrap-Up: Gold and Silver Fall Over 2% and 3% on the Week
By: Chris Mullen, Gold Seeker Report

COT Gold, Silver and US Dollar Index Report - August 17, 2018
By: GoldSeek.com

Why the uranium price must go up
By: Richard (Rick) Mills

Gold Miners’ Q2’18 Fundamentals
By: Adam Hamilton, CPA

 
Search

GoldSeek Web

 
BIS Warns of ‘Uneasy Calm’ in Markets Before Possible Debt Storm


 -- Published: Monday, 7 December 2015 | Print  | Disqus 

The Bank for International Settlements (BIS) has warned in its latest quarterly review that the current ‘uneasy calm’ in financial markets might be short lived, threatened by the Fed’s widely expected interest rate hike – the first rate increase in a decade.

GoldCore: BIS Quarterly Review

Source: BIS Quarterly Review

This latest warning comes after BIS – the central bank of central banks  – had previously cautioned that recent economic turmoil in the global stock markets  “showed how developed and emerging markets were exposed to the unwinding of financial vulnerabilities built up since the 2008 crisis.” See: “BIS Warns of ‘Major Faultlines’ In Global Debt Bubble”.

“The short-lived market response might suggest that EMEs (emerging market economies) could ride out the prospect of US monetary tightening. However, less favourable financial market conditions, combined with a weaker macroeconomic outlook and increased sensitivity to US interest rates, heighten the risk of negative spillovers to EMEs once US rates do start to rise in the United States”. BIS Quarterly report December 6th

Again, BIS warns that investors remain “hooked on every word and deed” of central banks and that recent turmoil in markets was not caused by isolated incidents but rather “the release of pressure that has gradually accumulated over the years along major fault lines”.

According to the the Telegraph today, “The central bank watchdog said emerging market households and businesses reliant on cheap debt faced a credit crunch that could trigger panic in a world of evaporating liquidity and fewer market makers.”

Public and private debt in the developed world has risen 36% since the crisis and is now 265% of GDP and the post-crisis problems have been dealt with with the same ineffectual policies that caused the crisis – prolonged ultra low interest rates and easy monetary policy.

GoldCore: BIS Quarterly Review
Source: BIS Quarterly Review

Quoting Claudio Borio, head of the economic department at the BIS, the Telegraph report, ‘“Expectations of further ECB easing had led traders to place bets on the euro that caused huge market swings when the central bank was perceived as failing to deliver. “Against this backdrop, it is hard to imagine how the calm could be anything but uneasy. There is a clear tension between the markets’ behaviour and underlying economic conditions.’ ‘”At some point, it will have to be resolved”, said Mr Borio’.

Read more from The Telegraph: “Uneasy’ market calm masks debt timebomb, BIS warns

Other Sources:
BIS Quarterly Review, December 2015
BIS Warns of ‘Major Faultlines’ In Global Debt Bubble

DAILY PRICES
Today’s Gold Prices: USD 1082.70, EUR 1001.80 and GBP 718.26 per ounce.
Friday’s Gold Prices: USD 1063.00, EUR 977.56 and GBP 702.60 per ounce.
(LBMA AM)

GoldCore: Gold in USD - 5 Years

Gold in Euro – 1 Year
Gold enjoyed a decent gain on Friday closing up $22.00 to close at $1085.20 for the weekend, a gain of 2.51% for the week. Silver was also up on Friday closing at $14.55, a gain of 3.19% for the week.  Platinum jumped $34 to close at $878.

Mark O'Byrne

 - www.GoldCore.com

 


| Digg This Article
 -- Published: Monday, 7 December 2015 | E-Mail  | Print  | Source: GoldSeek.com

comments powered by Disqus



 



Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to GoldSeek.com

 news.goldseek.com >> Story

E-mail Page  | Print  | Disclaimer 


© 1995 - 2018



GoldSeek.com Supports Kiva.org

© GoldSeek.com, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of GoldSeek.com and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on GoldSeek.com. This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer

The views contained here may not represent the views of GoldSeek.com, its affiliates or advertisers. GoldSeek.com makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of GoldSeek.com, is strictly prohibited. In no event shall GoldSeek.com or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.