Bloomberg/Greg Ritchie/12-5-2022
“In a paper with the title ‘huge, missing and growing,’ the BIS said a lack of information is making it harder for policymakers to anticipate the next financial crisis. In particular, they raised concern with the fact that the debt is going unrecorded on balance sheets because of accounting conventions on how to track derivative positions.”
USAGOLD note: The numbers get bigger and bigger until they become incomprehensible…… The BIS does a good job of identifying the exposure, but how many know the level of danger it represents. In an opinion piece on the subject, Bloomberg’s Paul Davies points out that “central banks have to wait for the chaos to erupt before they know where and when dollars are needed — and even then they might not be entirely sure if they are directing the flows where they are required.” Not a comforting scenario……
