Next global financial crisis to hit with a ‘vengeance,’ warns BIS

The global economy is caught in a permanent trap of boom-bust financial cycles. This deformed structure is becoming ever more corrosive and dangerous as debt ratios rise to vertiginous levels, the world’s top monetary watchdog has warned.

The Bank for International Settlements said the rot in the global monetary system has not been cut out since the Lehman crisis in 2008.

The current ageing and unstable cycle could finish in much the same explosive way, contrary to the widespread belief that it was a once-in-a-century event caused by speculators.