The Bank of International Settlements issues yet another economic warning
Adam Pike, News Editor
9 Dec 2014, 10:45 a.m.
Often referred to as the Central Bankers bank, The Bank of International Settlements has issued another warning over the state of the world economy.
In its latest warning the bank believes the strengthening U.S dollar could have potentially destabilise emerging market economies, such as India and China. The warning comes as China’s latest trade figures disappointed and the U.S. dollar surged to a five year high against a basket of 10 major currencies.
The Swiss based bank also confirmed that the issuance of collateralised debt obligations (CDO’s) has now surpassed the levels recorded prior to the 2008 economic crash. In the year ending September 2014 the CDO market was worth $250bn up from $190bn in 2007.
Previously CDO’s were described as weapons of mass destruction and were partly to blame for the bankruptcy of Lehman Brothers.
Gold is currently trading at £770.52 per ounce, silver £10.49 per ounce, platinum £789.04 per ounce and palladium £513.88 per ounce.