Another financial crisis is looming and central banks may be the cause, according to Deutsche Bank. The link to a finite commodity helped limit the amount of debt that could be created. It revealed financial crises have increased since the breakdown of the Bretton Woods system in the 1970s, and blamed current instability on the fiat money system. The bank said that it expects a global recession by mid-2017 with unemployment rising from its current level of around 10 percent to 12 percent. Deutsche Bank said: "there is no natural point where a purge of the excesses is forced by a restriction on credit creation".
Another financial crisis is looming and central banks may be the cause, according to Deutsche Bank. It revealed financial crises have increased since the breakdown of the Bretton Woods system in the 1970s, and blamed current instability on the fiat money system. The bank said that it expects a global recession by mid-2017 with unemployment rising from its current level of around 10 percent to 12 percent. Deutsche Bank said: "there is no natural point where a purge of the excesses is forced by a restriction on credit creation".