In 2016, the Modern World Economy Will Disappear
Russian economist Valentin Katasonov is the author of the forecast that in 2016 the world economy as we know it will disappear. He explains his position.
Yes, we can see more and more evidence of this, not just in ordinary facts and events, but even in some documents, reports, and official announcements. I was shocked by the fact that the Bank for International Settlements (BIS) recently published a report that the central banks cannot control the situation. The BIS is an institution that unites the central banks of all or most of the countries. And this is just a deplorable fact.
And in fact, the last six years (since 2009, the end of the financial crisis) the central banks of the leading countries conducted a quantitative easing policy. This was strengthened by the fact that they had consistently lowered interest rates, and a number of central banks' interest rates on deposits shifted into the negative zone... And today, the BIS says that central banks lost control over processes. Actually, there are no other tools.
Why has the Bank for International Settlements remained silent until now? At least, the financial system provides profit for the main beneficiaries. But now the 2015 recalculated financial indexes shows that the profits of the United States and other countries of the “golden billion” financial and non-financial corporations have fallen. And the monthly data shows that this fall continues. And this is the holy of holies, you know! Some macroeconomic indexes may fall, but if the profits are falling...
Well, in fact, it started to fall in 2014. But the BIS hinted that there was some index fraud to support the optimism of the financial market participants.
So, now, even the most conservative financial structures had to confirm such anxious symptoms. And we will see them in 2016.