By Susan Duclos – All News PipeLine
On March 4, 2016 it was reported that Barack Obama said that the U.S. economy is “pretty darn great right now,” and those saying the economy is bad is living in an “alternate reality,” and engaging in “fantasy.”
The Bank of International Settlements (BIS), known as the central bank of all central banks recently warned that the uneasy calm of previous months had given way to turbulence and a “gathering storm.”
“We may not be seeing isolated bolts from the blue, but the signs of a gathering storm that has been building for a long time,” BIS chief Claudio Borio warned.
The concluding paragraph from the BIS March 6, 2016 release states “Underlying some of the turbulence of the past few months was a growing perception in financial markets that central banks might be running out of effective policy options. Markets pushed out further into the future their expectations of a resumption of gradual normalisation by the Fed. And as the BoJ and ECB signalled their willingness to extend accommodation, markets showed greater concerns about the unintended consequences of negative policy rates. In the background, growth remained disappointing and inflation stubbornly below targets. Markets had seemingly become uncertain of the backstop that had been supporting asset valuations for years. With other policies not taking up the baton following the financial crisis, the burden on central banks has been steadily growing, making their task increasingly challenging.”
We have to ask Obama is the BIS is also living in an “alternate reality?” Read more…
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