Bank for International Settlements warns of another Great Depression

June 26th, 2007

Share |

In our previous article, Epic, unprecedented inflation, we mentioned that:

How much longer will the roaring global economy fly? We do not know the answer, for this boom may last longer than what we anticipated. However, please note that in the entire history of humanity, all bubbles (and we repeat, ALL) burst in the end. Thus, a global painful hangover will ensue?the greater the boom, the more painful the eventual bust. This is the theme that we had repeated many times.

Thus, do not be surprised if a second Great Depression were to strike.

Today, we are glad that fellow Austrian School economists in the Bank for International Settlements (BIS), which is sometimes called the ?central bankers? central bank,? spoke out the same thing in their annual report. Mind you, the BIS is one of the world’s pre-eminent financial institutions.