23 June 2013, by Tyler Durden (zerohedge)
Excerpt:
BIS: "Consider what would happen to holders of US Treasury securities (excluding the Federal Reserve) if yields were to rise by 3% across the maturity spectrum:
they would lose more than $1 trillion, or almost 8% of US GDP.
The losses for holders of debt issued by France, Italy, Japan and the United Kingdom would range from about 15 to 35% of GDP of the respective countries.
Yields are not likely to jump by 300 basis points overnight; but the experience from 1994, when long-term bond yields in a number of advanced economies rose by around 200 basis points in the course of a year,
shows that a big upward move can happen relatively fast.
And while sophisticated hedging strategies can protect individual investors, someone must ultimately hold the interest rate risk.
Indeed, the potential loss in relation to GDP is at a record high in most advanced economies.
As foreign and domestic banks would be among those experiencing the losses, interest rate increases pose risks to the stability of the financial system ..."
BIS says ‘pull the plug’ but Bernankesan can’t stop his QE because rates can’t rise and foreign wars have to be funded trough the printing press.
The Bank Of International Settlements Warns The Monetary Kool-Aid Party Is Over
The Bank Of International Settlements Warns The Monetary Kool-Aid Party Is Over
Comment
-
Comment by truth on June 24, 2013 at 12:42am
-
Clarke and Dawe - Quantitative Easing -
-
Comment by Nobody Will Observe on June 24, 2013 at 12:12am
-
Spike the Koolaid with Gin. Makes the BS more palatable and the crash more bearable.
Smoke-um if ya got-um, but I resent the 'I smoke so I'm better than a drunk' crap around here ;)!
"Destroying the New World Order"
THANK YOU FOR SUPPORTING THE SITE!
Latest Activity
- Top News
- Everything
What was the Significance of the F-94 C and What role in History?
It’s July 19, 1952 over White House forbidden airspace and Captain William Patterson observes…See More
FLUORIDEGATE: An American Tragedy. a film by Dr. David Kennedy
FLUORIDEGATE: An American Tragedy, is a feature documentary that reveals the tragedy of how government, industry and trade associations protect and promote a...
Rendezvous With The Unknown
Rendezvous With the Unknown Chapter I It was about 9:00 am when I received a text on my phone from…See More
"ah ha - a Tartarian cuisine component lurks inside good old Tartar Sauce. Who would have thought.…"
Shadows in the Wind
If you think that life is but a game you can winYou’re just a shadow in the windConveniently…See More
Mossad: we create a pretend world, we are a global production company... the world is our stage
60 Minutes interviews alleged Mossad agent"we create a pretend world, we are a global production company......the world is our stage."_______________________...
The Alvin II Encounter: Was There A Living Dinosaur Involved?
The year is 1965 in the Caribbean islands at a 5-thousand-foot depth in the dark Atlantic waters.…See More
© 2025 Created by truth.
Powered by
You need to be a member of 12160 Social Network to add comments!
Join 12160 Social Network