Reserve Bank of India Governer Warns of another global Financial crisis

www.thehindu.com...

Reserve Bank of India Governor Raghuram Rajan has warned that the world economy could be heading towards a crash much like the Great Depression of the 1930s as advanced countries in a bid to pull out of the global downturn are working at cross purposes.

As was the case in the 1930s, the lack of coordination between central banks across the world is producing spillovers that may be difficult to control and could plunge the world’s financial system into another crisis, Dr. Rajan said in an interview to the Central Banking Journal on Wednesday.

Dr. Rajan, a former chief economist of the International Monetary Fund, had famously predicted the 2008 global meltdown.

We are taking a greater chance of having another crash at a time when the world is less capable of bearing the cost

The European Central Bank’s “very, very accommodative stance” is getting blunted by the ultra-loose monetary policies being pursued by other central banks, including the Federal Reserve, the Bank of Japan and the Bank of England.

To safeguard against such an eventuality, all central banks must unwind their monetary policies in a coordinated fashion, Dr. Rajan recommended.

Well it certainly looks like trouble, His words should be taken very seriously . He was responsible for stopping the free fall of Indian Rupee 5 months back . The RBI did a great job in preventing global financial contagion from effecting India back in 2008 .The RBI fortunately has powers to control financial mismanagement than even that of the Federal Reserve does in the US, where financial management has effectively been ceded to Wall Street and greedy bankers

if his prediction is true it fits perfectly into the BIG scenario.

revolutions, unrest's, civil wars, demonstrations, terrorists, slow economy, debt.

we're ripe for a war I'm afraid.

who/what will be Gavrilo Princip this time?

a reply to: demus

yes but a war against what? terrorism, ebola, Iran, Syria, etc, etc

Central banks around the world have most of the stocks now, so yeah, if they want to unwind they should talk to each other and do it an orderly way or else it gets messy. But seeing how they bought them in an orderly manner, I think the unwind will be also orderly just as in `08/`09...it might not look that way at first, but I`m sure they will.

Isnt there already a war of sorts going on? Its just disjointed and complex but mostly about minerals and territory.
Didnt some geezer predict or state that there would be thermo nuke war in 2015?
Timing and current events are about right allowing for further escalations/developments.
Whatever the events of the coming year, its sure to be interesting!

originally posted by: subtopia
a reply to: demus

yes but a war against what? terrorism, ebola, Iran, Syria, etc, etc

There will be some false event that will kick off WW3 if it already hasn't happened... The only people that will suffer are the one's who don't want war while the instigator's are off on self righteous island somewhere.

Every war starts with a lie...

originally posted by: subtopia
a reply to: demus

yes but a war against what? terrorism, ebola, Iran, Syria, etc, etc

Probably every nation of the IMF or World bank against every nation that makes up BRICS. My guess anyways.

a reply to: demus

Well let's run it down.

Ferguson - Civil Unrest/Revolution/Demonstrations/Police Terrorism
Ebola - Civil Unrest/Medical Terrorism
High Unemployment, Lack of sustainable fulltime jobs.

Yep..hitting the fan.

a reply to: TheLieWeLive

US/EU versus the ISIS BRICS coalition.