Executive Intelligence Review
Subscribe to EIR


Chinese Banking Official Warns of Coming Global Crash

Oct. 28, 2015 (EIRNS)—"It is likely that the world will face another global financial crisis in the next five years," the Director-General of the China Banking Regulatory Commission, Min Liao, said in an interview at the Oct. 25-27 Summit on the Global Agenda of the World Economic Forum in Abu Dhabi.

"The reason lies in the fact that many of the problems behind the 2008 crisis remain unsolved. The fragility is still there, for instance in shadowing banking, high indebtedness, a lack of structural reform, the sustainability of emerging markets, and high leverage."

Min Liao’s diagnosis contrasts sharply with the self-serving nonsense dished out in much of the world’s financial media, which blames China’s "low" GDP growth rate of "only" 6.9%, for the world’s financial difficulties.

As reported by RT, Min Liao added:

"The real economy cannot recover to the pre-crisis level in the foreseeable future, and it remains uncertain whether the intensified regulation can control risks from shadow banking and disruptive technologies. Therefore, the next crisis will probably catch us unprepared once more."