Panic in Basel: Central banks are preparing for the crash
Yanis Varoufakis reports on a secret crisis meeting in Basel, at which Western central bankers openly showed panic.
A senior Fed representative there literally said that we should stop pretending that the situation is "controllable". The demand for US government bonds is collapsing, repo markets are failing.
Several major foreign creditors wanted to exit US Treasuries, which is why central banks are now secretly selling them via offshore channels to avoid triggering an open crash. Internally, capital controls, bank holidays, and $3–5 trillion in pension losses are already being anticipated.
A Nordic central banker told Varoufakis: "There is no scenario that ends well."
The time horizon: 12–18 months, in the worst case weeks. For example, with a new BRICS currency or a geopolitical shock.
According to Varoufakis, those who are supposed to prevent the collapse have admitted one thing: They have no plan.