‘Vaguely Troubling’: BIS Warns Of Disaster Re $17 Trillion Negative-Yield Debt

When the central bank for central banks publishes its quarterly review, the world should take note.

Claudio Borio, Head of the Monetary and Economic Department at the BIS, published the BIS Quarterly Review, September 2019on Sunday, revealing how the increasing acceptance of negative interest rates has reached “vaguely troubling” levels. 

The statement comes after the Federal Reserve and European Central Bank (ECB) cut interest rates to flight a global manufacturing slowdown — Borio said that the effectiveness of monetary policy is severely waning and might not be able to counter the global downturn, in other words, JPMorgan Global Composite PMI might print sub 50 for a considerable period of time. 

“The room for monetary policy maneuver has narrowed further. Should a downturn materialize, monetary policy will need a helping hand, not least from a wise use of fiscal policy in those countries where there is still room for maneuver.”

The BIS, known as the ‘central bankers’ bank,’ said the recent easing by the Fed, ECB, and PBOC, has pushed yields lower across the world, contributing to the more than $17 trillion in negative-yielding tradeable bonds. 

From Germany to Japan, 10-year government debt rates have plunged into negative territory, in recent times. 

“Against this backdrop, sovereign bond yields naturally declined further, at times driven by the prospect of slower economic activity and heightened risks, at others by central banks’ reassuring easing measures. At one point, before the recent uptick in yields, the amount of sovereign and even corporate bonds trading at negative rates hit a new record, over USD 17 trillion according to certain estimates, equivalent to roughly 20% of world GDP. Indeed, some households, too, could borrow at negative rates. A growing number of investors are paying for the privilege of parting with their money. Even at the height of the Great Financial Crisis (GFC) of 2007-09, this would have been unthinkable. There is something vaguely troubling when the unthinkable becomes routine,” Borio warned. 

Central bankers have already acknowledged that the flurry of recent rate cuts had continued to deplete their already-limited firepower – which would make their ability to fight a prolonged downturn less effective than ever before. 

ECB President Mario Draghi said earlier this month that “it’s high time for the fiscal policy to take charge,” an indirect admittance that monetary policy has run its course. 

“Almost all the things that you see in Europe, the creation of more than 11 million jobs in a short period of time, the recovery, the sustained growth for several quarters, were by and large produced by our monetary policy. There was very little else… Now it’s high time for the fiscal policy to take charge.”

Borio said global markets were alarmed this summer by the inversion of the US and other major countries’ bond yield curves.

He also warned about the corporate debt market, specifically major imbalances in leveraged loans known as collateralized loan obligations (CLOs) which “represent a clear vulnerability” to the global financial system. 

And perhaps gold is ‘fearing’ the same “unthinkable” status quo that Borio warns of as it rises alongside negative rates…

  • https://www.zerohedge.com/economics/vaguely-troubling-bis-warns-financial-disaster-amid-17-trillion-negative-yield-debt

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27 thoughts on “‘Vaguely Troubling’: BIS Warns Of Disaster Re $17 Trillion Negative-Yield Debt”

    1. @Joepie
      If YOU are Not informed about NESARA/GESARA…You NEED to find out FAST!!!
      Because it was about Bankers being FORCED to pay back ALL STOLEN WEALTH THEY TOOK FROM “YOU” SINCE YOU WERE BORN…UNDERSTAND???
      There MIGHT be still available the website called “Alcium Bramerton.com” where it DETAILS EVERYTHING THAT LEAD UP TO NESARA/GESARA’s Creation the $100,000.oo A MONTH “YOU” SHOULD HAVE RECEIVING SINCE 9/11/2001….Witch means YOU would worth somewhere North of $132,000,000.oo by Now…CURIOUS???

    2. If it truly exists, GESARA by name is likely kept under wraps for security reasons; however, there are a series of seven or more recent legislated laws that, when compiled together, have the sound of GESARA. The concept, by itself, cannot work without a large infusion of cash from the Global Collateral Accounts, of which, the Chinese elders are the owners. BRICS and the RV plus the completion of the new quantum banking system just might be the items necessary to initiate the much publicized Global Currency Reset. If you need to know what new legislation exists, ask the editor of this site to publish them.

      1. @ John
        OBVIOUSLY, you are Still living “Inside the Box” to make a statement like this (Yikes!)
        The CHINESE are PART of the NWO…Understand, YET???
        The so-called “Quantum Banking System” is NOTHING Less than ANOTHER “FIAT CURRENCY” SYSTEM…ON “STEROIDS”!!!
        DUH!!! Is Yar Stupid Ur sumtin’???
        It’s REALLY nothing more that a “CRYPTO-CURRENCY” SYSTEM (BitCoin/Digital & such)….Controlled by “AI Inslaw Corporation” birth as PROMIS Software (Advanced Version) …WITCH WILL “FAIL” MASSIVELY…Understand…YET???

  1. DUH!…It took UR Dis LONG tur figur dat OUT?!??!
    THAT YOU CANNOT “BARROW” YOURSELF OUT OF DEBT?!
    Jeeeeeeeeeepers!!! WHEN will folks AWAKEN to the FACT that the Bakoholics THRIVE off Debt.
    DEBT = ENSLAVEMENT….GET THAT Folks???
    NESARA/GESARA Law was STOPPED by Them because they didn’t like the Idea of Ordinary People becoming DEBT-FREE…GET-THAT FOLKS???
    ALL Bankoholic’s are Controlled by WHITE SUPREMEST…PERIOD!

    1. I Found that website detailing WHAT NESARA/GESARA would have done for EACH American & Global citizen world wide.
      http://www.alciiunbramerton.blogspot.com/
      There is where EVERYONE over the age 21 would be receiving the RETURN of ALL Stolen Wealth from the bankers, at a rate of $100,000.oo@ month for 11 years!
      THINK What this Size MONTHLY Income would DO for POVERTY…WORLDWIDE!!!
      Homelessness would be wiped out!
      All Debt would be cancelled!
      WHO would ever Want or Need a “Credit-Card”
      Imagine what it would do for people wanting to further their KNOWLEDGE…about Anything they wished to learn.
      TALK ABOUT THE “AMERICAN DREAM” BEING FULFILLED?!?!
      The BIGGEST thing that would be taken cared of is FEAR!
      Even the world’s riches people would NOT have the NEED for “Security” they are worried about…not to mention even put a dent in THEIR wealth.
      The QUESTION IS:…WHY WASN’T IT ENFORCED???

    1. GEE Josh…I wonder WHAT You mean by the term “FAIR Value”?…Shouldn’t That INCLUDE “REAL Property” like GOLD & SILVER??? You Know the ORIGINAL Money the world Used to spend by.
      Ya SEE Josh Da Banky-Folks got Their FALSE Idea of Mis-representing their VALUE by FAKING the amount of REAL property (PM’s)They actually had…Understand Yet??? Originally at 10 to one!
      God knows WHAT it is by Now…Maybe 1000’s to one!!!
      Now they THINK that Cryptos (Digitals) will solve the problem…WHEN THEY DON’T EVEN HAVE A “PHYSICAL” EXISTENCE?!?!
      THEY EVEN GO SO FAR AS TO GET PEOPLE TO BELIEVE THEY ARE “MINING IT”?!?!
      The ONLY “Fair Value” money is PM’s and REAL Physical Assets…You Know…LIKE IT USED TO BE…BEFORE They started “Manipulating” Values….Remember???

    1. @Doreen
      That is the BIGGEST Illusion of All Time Doreen, but NO it doesn’t rule the planet.
      The Avatars THINK they rule via a “Money System”, but will VERY SOON find out “Differently”.

  2. There Actually people all around this planet that have NO Need for Money…They TRADE for goods and services…EXACTLY the way Ancient Civilizations Did.
    Actually for a Time there were people HERE (USA) that Attempted to use a BARTER System instead of Money…I KNOW because I got in touch with THEM…Before I went Bankrupt for the Second time.
    I lost contact after that happened, BUT Loved the concept!
    I was in the middle of a service Trade with a Dentist via ME repairing a automobile in trade…when the bankruptcy Ruined it!
    Ever since then I started CATCHING-ON to What the real “Enemy” was = CREDIT & BANKERS!!!
    Since then I have RID myself of CREDIT Spending FOREVER!
    I also Stopped KEEPING my Money INSIDE the bank I have to deal with.
    I STOPPED listening to ANY Advertisements…in ANY form.
    And then became obsessed about KNOWLEDGE, because I UNDERSTAND WHAT THAT MEANS = POWER!
    Remember that Very Ancient saying: “Knowledge is Power”???

      1. @Doreen A Agostino
        The Melanin Beings once Allowed allowed Their Creation (Hu-Manity) to HAVE that “Kind” of Power.
        That is WHY the Most Ancient civilizations could Create ALL Those Structures as they did…Structure today’s technologies would find IMPOSSIBLE to build.
        The Avatars have been Attempting to Destroy those records PROVING this to be True. Instead they are attempting to ASSUME the Identity of those “Divine Cosmic Beings” by selling the planet a WHITE god….WHO CANNOT BE “TRUTHFUL” ABOUT “ANYTHING”…UNDERSTAND???

    1. Do yourself a favor and google Judge Dale he explains how the system really works, when you are about to go Bankrupt list your birth certificate include cusip number as one of your assets, after everything is settled you have to be paid balance in cash from your Bond that everyone has that you and everyone else were never told about. It is all about keeping us in Debt slavery.

      1. @Noel Sanders
        Unless “Something has Changed with That method you suggested (cusip#) I believe that is exactly What got Heather in trouble when She attempted to access HER bond funds…The whole case was once followed by loads of folks…Does SHE or any associates still have a website???
        Ii will look into that name you supplied though.
        Thanks!
        The MAIN point is that NO GOVERNMENT OR ANY OTHER ENTITY EVER HAD RIGHTS OVER THE “DIVINE COSMOS’S CREATION”…MELANIN SOULS IN HUMAN FORM…UNDERSTAND???
        The current Global, ALL of IT is A SATANIC, EVIL SYSTEM…DESTINED FO “DOOM”!

  3. What is important to see here is that those countries that are in a negative yield debt are those connected to the BRICS countries barring China? I wonder why when it appears that ‘China’ has initiated most of the growth worldwide? China in Italics because we all know that is where a lot of western money went during and pre the 2007 recession!!
    Kennyboy, the bankers will always be enemies of the population, as a money printer they are not after ‘wealth as such’, but after power and it is those that own the banks that have this.
    We have a senario going on here east of the Americas known as BREXIT, a creation again where everybody in the colonial world is at panic as to what will transpire – diversion tactics once again and the actors are getting good at their game 🙂
    Knowing that the US, Canada, Australia, SA, etc etc… are still part of the commonwealth in some form or another, does one think that it is a situation worth worrying about? In fact the red white and blue is proudly waving in the wind the world over.

    1. You need to UNDERSTAND that those AVATAR Creature’s are DOOMED…No Matter What they attempt to accomplish.
      The “Divine Cosmic Creators” WANT Their Creation to be FREE…Understand, YET???

    1. And I thought that the P2 Masons are still in charge and not only are they supposed to be just an Italian secret entity but are in fact very much connected and controlled by the queens court.
      This video is from the 1980 era and I am sure that a lot more has transpired and intact been hidden even more.
      Can you just imagine if the cashless society is fully enforced, these monsters will get away with even more murder! That is why they are called Banksters…

      1. @Shaplemau
        In case YOU don’t know, I Know all about what is now called the UK (England) Your-Story, OK?
        The so-called “City of London” is OWNED by the VATICAN, and I KNOW You Understand that, OK?
        Obviously You are in “Support” of VATICAN interest, because YOU Know that the VATICAN “OWNS” the ALL the “Crowns” Earth-wide!
        Just TRY to ADMIT this First before posting again, OK???
        I Knew you are a UK “Believer”, and You NEED to get BEYOND your country IF You are in SUPPORT of “Oneness” of ALL CREATION.
        THE VATICAN IS “OBVIOUSLY” NOT IN SUPPORT OF “ONENESS”….CAN-YA-DIG-IT?!?!W

      2. @kennyboy,
        Nope you have totally misunderstood what I have written. I do NOT support the so called entities that you have described. They do not morally and ethically align with my beliefs.
        There are however a few things( maybe more than a few that I am not quite clear about);-
        The crown here has told the vatican on several different occasions and under the reigns of different monarchs to sod off! I have posted these dates occasionally here on GP. Even after the papal bull declarations England( not the UK) went to war with Spain and in fact taking territory( the Americas) from her.
        I do also know that when Cromwell came into a position of power he was involved in the beheading of a certain ‘king’, this allowed king orange from Holland to takeover with the backing of the false jews.
        So perhaps it ( the uk) is under the thumb of the vatican.
        When bankers as kenny has posted above are described as ‘gods banker’ I tend to wonder, especially when we both know that when they talk of 1.2 billion in 1983 that the vatican must have surpassed that amount many times over. A diversion tactic. Notice that people like the rothechilds are never mentioned in the list of the top ten richest.
        Anyways I have waffled far too much already, have a good weekend…

  4. @Shapemau
    Geeeee! That’s funny I have that site bookmarked (Alcuinbramerton.blogspot)
    Do a Search for it using That name…see if it comes up that way.
    I did NOTICE that “Someone”(Thing) has been “Invading” that site since I first bookmarked…but MOST
    of the Original history about NESARA is STILL there.
    http://wwwalciunbramerton.blogspot.com/

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