Posted on 06/27/2005 8:52:45 AM PDT by hedgetrimmer
The Bank for International Settlements has called on major economies in America, Asia and Europe to cooperate on financial policy in order to stabilise imbalances threatening the world economy.
In its annual report, the BIS - known as the central bank of central bankers - praised global economic performance in the year to March 2005 but warned that there were hints of inflationary pressures building up similar to those in the late 1960s and 1970s.
While it stopped short of recommending binding financial rules at international level - including the possibility of a single international currency or a return to a system of regulating exchange rates - the BIS called for 'informal cooperative solutions'.
They would bring together debtor and creditor nations - mainly industrialised countries and emerging nations in Asia, including China - to 'avoid circumstances that could lead to systemic disruptions,' it added.
Differing cultures, perceptions of risk, or an over-riding sense of national interest, might prompt conflicting responses to the wide variety of imbalances and that could harm the world economy, according to the report.
A rise of interest rates would increase risks for the finance sector, which was currently relying on low credit prices and high consumption, it warned. The imbalances included current account deficits, notably in the US.
'It is unprecedented for a reserve currency country to have a current account deficit of such magnitude,' the report underlined.
The BIS also highlighted growing domestic economic pressures including a sharp decline in household saving in industrialised countries, record high debt levels and high house prices. High oil prices would add to the pressure on the world economy if they rose even further, the bank said.
They are right on the inbalances though.
Too much debt, not enough savings. There's going to be a hard landing in the next several years IMO.
Economic power is the hidden war, been going on for centuries between nations. The US must protect its interests with as much determination and wisdom as it does for any other threat.
We need to unilaterally act on oil prices, unfair market advantages, currency shenanigans, and industry protection from foreign buyouts. It's us and against the world in the economic sector too, and there is cost in lives for failure here too.
Economic power is the hidden war, been going on for centuries between nations. The US must protect its interests with as much determination and wisdom as it does for any other threat.
We need to unilaterally act on oil prices, unfair market advantages, currency shenanigans, and industry protection from foreign buyouts. It's us and against the world in the economic sector too, and there is cost in lives for failure here just like in war.
There cannot be any such thing on planet earth as a central bank of central bankers. What is this, the Matrix?
It certainly appears as if its the matrix:
****
The Bank for International Settlements (BIS) is an international organisation which fosters international monetary and financial cooperation and serves as a bank for central banks.
The BIS fulfils this mandate by acting as:
a forum to promote discussion and facilitate decision-making processes among central banks and within the international financial community
a centre for economic and monetary research
a prime counterparty for central banks in their financial transactions
agent or trustee in connection with international financial operations
The head office is in Basel, Switzerland and there are two representative offices: in the Hong Kong Special Administrative Region of the People's Republic of China and in Mexico City.
Established on 17 May 1930, the BIS is the world's oldest international financial organisation.
As its customers are central banks and international organisations, the BIS does not accept deposits from, or provide financial services to, private individuals or corporate entities. The BIS strongly advises caution against fraudulent schemes.
http://www.bis.org/about/index.htm
I don't understand how we can act "unilaterally" when it comes to oil prices.
It takes two to make a market.
I will dig into this a little. There are few institutions that are not corporate entities and that includes most gov'ts and banks.
I disagree, our 1972 OPEC boycott proved that it's the 'demand-er' that makes the market. When you borry one dollar the bank owns you, when you borrow 10 Billion, you own the bank.
I think it's obvious why we're not hearing more boycott talk from the Republicans, or even Democrats. Much as I like W, I'm sure none of his friends want to hear boycott from his lips.
Here's another one for you:
The World Customs Organization.
http://www.wcoomd.org/ie/En/en.html
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