While the revolution in Tunisia, Egypt, Libya and other North African countries may seem like an “Arab revolt”, it’s actually worldwide.
Protests involving thousands of protesters have recently been held in:
Predicted Years Ago
The worldwide riots are not mysterious or unforeseeable. They’ve been predicted for years, and are a direct result of the bad policy choices made by most nations worldwide.
The Bank for International Settlements – the world’s most prestigious financial agency, nicknamed the “central banks’ central bank” – warned in December 2008 that the bailouts and other bank rescue programs were putting nations were transferring risks from private companies to nations.
As I noted at the time:
BIS points out in a new report that the bank rescue packages have transferred significant risks onto government balance sheets, which is reflected in the corresponding widening of sovereign credit default swaps:
The scope and magnitude of the bank rescue packages also meant that significant risks had been transferred onto government balance sheets. This was particularly apparent in the market for CDS referencing sovereigns involved either in large individual bank rescues or in broad-based support packages for the financial sector, including the United States. While such CDS were thinly traded prior to the announced rescue packages, spreads widened suddenly on increased demand for credit protection, while corresponding financial sector spreads tightened.
In other words, by assuming huge portions of the risk from banks trading in toxic derivatives, and by spending trillions that they don’t have, central banks have put their countries at risk ….
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