Sunday, June 26, 2011

BIS: Everyone fix everything now.

The Bank of International Settlements, usually a sober group of mid-level servants whose chief duty is to ensure Banks have enough reserves to satisfy current international obligations, is now peppering the wires with calls for the entire world to fix all of its economic problems simultaneously and immediately. Strange timing on this:

The Bank for International Settlements urged Europe to end its dithering and find a permanent solution to the sovereign debt crisis.
“For well over a year, European policy makers have been scrambling to put together short-term fixes for the hardest-hit countries while debating how to design a viable and credible long-term solution,” the BIS said in its annual report published today in Basel, Switzerland. “They need to finish the job, once and for all.”

And also this...

Central banks need to start raising interest rates to control inflation and may have to act faster than in the past, the Bank for International Settlements said.
“Tighter global monetary policy is needed in order to contain inflation pressures and ward off financial stability risks,” the BIS said in its annual report published yesterday in Basel, Switzerland. “Central banks may have to be prepared to raise policy rates at a faster pace than in previous tightening episodes.”

On another note, the BIS website has this gem:

" The BIS strongly advises caution against fraudulent schemes." Good advice.

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