The Oil Price Drop is our Best Hope According to BIS

Reading the BIS pressrelease from yesterday (June 28th) i found some interesting comments on the oilprice that sort of fits into the overall BigBank plan. (BIS/Bank for International Settlements) beeing the mother of all BigBank institutions …

… An essential element of this rebalancing is to rely less on demand management policies and more on structural ones, so as to abandon the debt-fuelled growth model that has acted as a political and social substitute for productivity-enhancing reforms. The dividend from the oil price drop provides an opportunity that should not be missed. Monetary policy has been overburdened for far too long. It must be part of the answer but cannot be the whole answer. …

No doubt they are planning for lower oil prices AND further QE (ie. Monetary policy), but are healthy enough to realize that unless there are price deflation from lower energy costs the increase of debts will not work in their favour but only lead to instabilities (see Greece).

Maybe they’ve already given up on Greece as shown in this Freudian slip found by WSJ according to Zerohedge. In the final report at the bis.org web Greece us blue again … Coincidence or plan?

BIS euro zone_0

 

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