Jim,

BIS warns about risk of inflation.

I wonder if the BIS is not used to warn politicians to keep central banks independent from political interference.

Unfortunately, I believe this won´t happen as we have seen lately.

Regards,
CIGA Christopher

Dear CIGA Christopher,

Central Banks will fight the market pull on interest rates via Quantitative Easing all the way to infinity if required.

Regards,
Jim

BIS Sees Risk Central Banks Will Raise Interest Rates Too Late
By Simone Meier

June 29 (Bloomberg) — The Bank for International Settlements said there’s a risk central banks will raise interest rates and withdraw emergency liquidity too late, triggering inflation.

History shows that policy makers “have a tendency to be late, tightening financial conditions slowly for fear of doing it prematurely or too severely,” the BIS, which oversees central banks, said in its annual report published today in Basel, Switzerland. “Because their current expansionary actions were prompted by a nearly catastrophic crisis, central bankers’ fears of reversing too quickly are likely to be particularly intense, increasing the risk that they will tighten too late.”

Central banks around the globe have lowered borrowing costs to record lows and injected billions of dollars into the financial system to counter the worst recession since World War II. While some policy makers have stressed the need to withdraw the emergency measures as soon as the economy improves, the Federal Reserve, Bank of England, and European Central Bank are still in the process of implementing asset-purchase programs designed to unblock credit markets and revive growth.

More… ^[1]

Jim,

Just a mere 31,000 in laid off workers to start. That’s just one state. I’m here in PA. There are more bailouts as far as the wallet can see.

CIGA BJS