Greece is a comparatively small economy, so the economic crisis there ought to be manageable.  But there is something far more worrisome on the horizon, and the Bank for International Settlements in Basel, Switzerland is ringing the alarm bell. To employ a common metaphor, interest rate cuts are the penicillin of financial crisis infections – the go-to solution that usually combats an economic downturn by making it cheaper to borrow money to spend and invest. But just as overuse of penicillin has bred antibiotic-resistant bacteria, so has overuse of interest rate cuts left central banks in a tough situation: interest rates are so low that there is no further cutting practical – unless you actually pay people to borrow money. The UK Telegraph reports: The world will be unable to fight the next global financial crash as central banks have used up their ammunition trying to tackle the last crises, the Bank of International Settlements has warned. The so-called...(Read Full Post)