First the IMF and now Mervyn King
Duncan Richardson, News Editor
29 Feb 2016, 1:57 p.m.
Former governor of the Bank of England Mervyn King has warned a global financial crash is imminent because governments, regulators and financial markets have failed to reform the banking system.
King was at the helm of the Bank of England between 2003 and 2013 and was the architect behind the £500 billion bailout of the UK banking system in 2008.
Rather than blaming his banking buddies King believes the route of the problem lies in our system of money and the structure of our banking system. Surely as the Governor of the Bank of England it was his job to address these issues rather than waiting for the release of his latest book. Having said that, King is the first central banker to indicate that our system of money is broken.
King also believes central bankers are now trapped and unable to raise interests for fear of slowing growth or popping asset prices.
Since the start of 2016 the International Monetary Fund, the World Bank, Royal Bank of Scotland and UBS have all stated that we are on the cusp of another economic crisis.