The global financial system stands on the brink of second credit crisis - UK Telegraph

Article offers a pretty good analysis of the risks facing the global economy. The first and most prominent is China's financial and economic situation with its slowing economy, high debt loads and the precarious property market problems there. Talks about the risk of contagion across the globe and the surge in global debt from 2007 to today and cites a couple of economic indicators. Author sees the second global credit crisis may have already begin in China.

The global financial system stands on the brink of second credit crisis

The world economy stands on the brink of a second credit crisis as the vital transmission systems for lending between banks begin to seize up and the debt markets fall over. The latest round of quantitative easing from the European Central Bank will buy some time but it looks like too little too late.

on China's real estate...

The second global credit crisis is now already unfolding in China some 6,800 miles away from the epicentre of the first in the US. The bonds of Chinese real estate companies are now falling like dominoes. Kaisa, a Shenzhen-based, Hong Kong-listed developer that raised $2.5bn on international markets had to be bailed out by rival group Sunac last week after it defaulted onits debts. The bonds of other Chinese real estate groups such as Glorious Property and Fantasia have also sold off heavily as the contagion spreads.

On contagion and exposure of UK banks to China's property market....

So, the contagion can quickly spread from the Chinese property market to a poorly funded UK bank that has never set foot in Asia. That is because UK banks borrow billions in short term funding from each other. Loan losses in China can very quickly become a UK problem.

Cheap debt, low risk and bailouts....

It seems nothing has been learned. The response to the underlying causes of the first global financial collapse, namely cheap debt, low risk and bailouts, has simply been a heroic effort to create cheaper credit, lower risk and even larger bailouts. It hasn’t worked.

The spiralling global debt...

A new study reveals the staggering scale of the problem as global debt has ballooned by $57 trillion since 2007 to reach about $200 trillion, according to McKinsey & Co.

The Baltic Dry Index as an indicator of slowing global economic growth...

It is not only asset classes that that are wavering, the key indicators of international economic activity are also flashing red. The Baltic Dry Index which is seen as a leading indicator for world economic growth tumbled to a 29-year low at 559 points last week.

The end game underway....

The second credit crisis is already unfolding in China and the latest round of European money will struggle to halt the contagion in credit markets.

Bleh.. I need the world to hold together about 3-4 more years so I can return stateside where I have a network of prepared friends.

Figures I'd finally get over seas in time for things to come unglued.

We are not out of the 1st financial crisis,let only adding this to the mix!

Retailing and manufacturing has taken a big hit and the stock exchange just looks like smoke and mirrors

originally posted by: Whereismypassword
We are not out of the 1st financial crisis,let only adding this to the mix!

Retailing and manufacturing has taken a big hit and the stock exchange just looks like smoke and mirrors

I agree...most american workers are worse off today than in 2007.

If they take another hit right now......Irish might want to return home sooner.

America has been proping up the global markets, they already printed us into extreme inflation once this all settles out.

This is a bad sign.

a reply to: surrealist

HA

I love it how they are blaming China in advance when their own quantitive easing since 2008 has doomed the western bankers

Not to mention the system of currency creation with automatic debt being completely unsustainable by bankers

Man...... Will the BS ever stop......ever

Straight away this feels like right wing scaremongering to fuel extra Tory votes at the election.

Vote for us, we're the only ones who can protect the economy whilst ensuring that punitive measures against the most impoverished are enacted, protecting the wealthy!

'Nuff said.



ETA - For American ATS'ers, the Telegraph has long established connections to the right wing Tory Party - and also very close ties to MI6.

It's often referred to in general conversation as the 'Torygraph'...

a reply to: FlyInTheOintment

That, or a distraction from the pedophilia scandal that is about to go nuclear.

a reply to: Firefly_

Very, very good point. The reason the third selection of overseer for the inquiry is from New Zealand? Because people are less likely to question / investigate her connections. Also, with the MI6 link, there's every chance this is all very, very closely tied together - election & diversion in one fell swoop!




The magistrate is poisoning the well...

Hopefully, when things go south, the value will be on people with skills, not monopoly money and promises to pay some day. Somehow though, it seems people will be thought of as liabilities rather than assets. It will start with the weak, unhealthy and helpless, then if you can't dig ditches or lift 50 plus pounds, your going to be toast, just another useless eater. Forgot to mention those in the resistance, if they start to gain power, they are on the list too.

The western world has been spending money left and right (and creating debt!!) making wars and preserving the wealthy's investments.

While China has been going into debt modernizing their country, investing in natural resource along with precious metals, and working with Russia and other countries building a trade system that is pretty much independent of the US dollar..
Two questions:
Which do you think is better off?

and

Does China really have that much incentive to pay back it's debt that is based on currency that is being debased as badly as the Dollar and Euro are? I mean the US certainly isn't gonna every pay what it owes them! Heck they can't even give Germany it's gold back!!!

Well there were rumours Ukraine gold supplies left their country perhaps Germany will get its gold back

Or the rumours may have been started by traders to manipulate the market,who knows

The whole system, by it's very nature and design was always going to fail at some point. What we have been seeing for so many years though is a ramp up in those at the top of the pile getting as much as they can before it comes crashing down and the little guys get stuck with the bill.

It's been happening everywhere and the stupidity of the bankers and politicians has been staggering. The EU alone is just one huge money-go-round. All states borrow money from their central bankers (at interest), then send it to other states in a similar dire financial crisis to pay off their debts, usually to the very banks that just created that loan out of thin air (at interest). The debt keeps piling up and more money created out of nothing and backed by nothing.

We are told that the people running the banks, the economists and finance ministers are the best and brightest. I'm sorry, I wouldn't let them handle the finances of the local girl scout troop bring and buy sale!

Thus, backed by the politicians, who also have their investments to protect, and know the consequences of dissent, we will be driven into another world war. That not only covers up the actions of the bankers, but creates more debt as a result of the war loans (at interest) and thus more control when the dust settles. Haven't we been down that road before?

a reply to: Britguy

I was going to comment but I am glad to see people like you have nailed it.

Thanks for the post. A lot of people in this thread are spot on, refreshing to see.

What he said^^

I wonder who the people will blame this time? Already blamed the homeowner, disabled, children, women, illegals. Who does that leave to blame?

originally posted by: MOMof3
I wonder who the people will blame this time? Already blamed the homeowner, disabled, children, women, illegals. Who does that leave to blame?

Well they still haven't blamed it all on the Chinese, Russia, Iran, North Korea or Fiji, so they still have that option open to them.

Of course, blaming one of the biggies, Russia or China (or both) would certainly help in ramping up war talk. Oh, hang on, they already started that?

originally posted by: Britguy

originally posted by: MOMof3
I wonder who the people will blame this time? Already blamed the homeowner, disabled, children, women, illegals. Who does that leave to blame?

Well they still haven't blamed it all on the Chinese, Russia, Iran, North Korea or Fiji, so they still have that option open to them.

Of course, blaming one of the biggies, Russia or China (or both) would certainly help in ramping up war talk. Oh, hang on, they already started that?

They sure have....very sad

a reply to: MOMof3

They will blame gays. Obviously gay marriage will cause this financial collapse.

I wish I was joking but I wouldn't be surprised.

Either way, to the OP:

If it turns out like the last financial collapse it might be a good thing if you have 3-4k saved up. I remember telling a friend(at the time I was broke) to buy Ford stock when it had dipped below 1.50 a share. If he had bought 5k worth of stock, he could have made around 45k off that trade.

I think it's important to remember that in every disaster opportunities arise as well. There's so much of an apocalyptic mindset which is important in my opinion, but it's also just as important to try and notice the opportunities of the right now as well.

First of all, 45k is a lot of MREs...

Just sayin'.

I like the way you're thinking. Yes, there is impending doom and gloom. But there is also a chance to make something out of it if you play your cards right (and aren't a casualty of the banker wars). Let's just hope they don't draft people into a war again though... a reply to: OrphanApology

originally posted by: Firefly_
a reply to: FlyInTheOintment

That, or a distraction from the pedophilia scandal that is about to go nuclear.

Yes, just look how long they've already delayed the investigation, I don't accept the feeble excuse that they can't find anyone qualified/suitable to head it that doesn't have links to the alleged abusers.

It looks to me like they're stalling for as much time as possible in order to destroy and cover up any incriminating evidence and discredit witnesses and victims. The guilty ones will definitely be actively covering up their crimes, those perverts are still at large and remain in positions of high political status, power, and influence, we shouldn't kid ourselves they won't use it to cover their tracks. They have too much to lose not to.

They're already compiling a list of the guilty ones (scapegoats) and fabricating flimsy evidence, and the ones who end up carrying the can will probably be long-dead anyway.

All this secrecy and lengthy stalling makes me very suspicious of what they're really up to. It stinks.

a reply to: FamCore

I don't see a draft working in the current system.

I think the way they would do it is destroy the economy to the point where people will be lining up to go to war(and get paid) because there would be no jobs available.

To me that seems far more likely at this point than a draft.