http://www.undergroundworldnews.com Low inflation, bond yields and interest rates around the world will push the boundaries of economic and political stability to breaking point if they continue on their downward trajectory, the Bank for International Settlements has warned. The Swiss-based "bank of central banks" said the "sinking trend" of global rates would push countries further into uncharted territory. It highlighted that $2.4 trillion (£1.6 trillion) of long-term global sovereign debt was now trading at negative yields, with an increasing number of investors willing to pay governments for the privilege of lending to them. "As bond markets show us day after day, the boundaries of the unthinkable are exceptionally elastic," said Claudio Borio, head of the Monetary and Economic department at the BIS. "The consequences should be watched closely, as the repercussions are bound to be significant." The BIS warned that the low rate environment risked creating instability. Low rates have already led to gaping pension deficits and lower bank profits, while the returns on savers' deposits have also been eroded. It said 20 central banks had eased monetary policy over the past three months alone. Mr Borio noted that the low rate environment had become so acute that even the International Monetary Fund had set a floor on its special drawing rights - which serves as the IMF's own form of international currency. http://www.telegraph.co.uk/finance/economics/11479425/Low-rates-will-trigger-civil-unrest-as-central-banks-lose-control-BIS.html