The Tower of Global Debt is Wavering -- $257 Trillion Debt Bomb . It is said that if you have ten dollars bill and no debt, you are actually richer than 20 percent of the Americans. This Fiat Con has been a Ticking Time Bomb for a very very long time! People should be fearful that this tower of debt is visibly wavering. More than a decade after the financial crisis, the amount of combined global government, corporate, and household debt has $257 trillion. Global debt has grown by about 50% in the last ten years. More and more debt needs to be created every day, or the system collapses upon itself! The FED will secure it with even more debt. Its the only thing they can do because they run a DEBT based financial system. And all the interest can never ever ever be paid back. Twelve years on from the global financial crisis, the world continues to reap the consequences. The Entire world is now awash in paper and drowning in debt. BUT, the Central bankers are buying gold. What does that tell us; as the Mainstream media remains silent to the disaster. Buy Precious Metals. Your pond will thank you. Welcome to The Atlantis Report. As the U.S.-China trade war continues and economies take a dive, already low global interest rates could drop even further. The Institute of International Finance noted that total worldwide debt is now $257 trillion, up nearly 50 percent. Although the borrowing helped the recession, the massive debt prevents regulators from increasing interest rates. As many of us still remember from 2008, household debt was one of the trigger points that led to the great financial crisis. So I think it is always important to keep in mind how has the debt load grown over time. So over the last twelve years so we are using 2008 as the beginning period and looking at where we stand today for beginning 2020. We can see the various debt segments have actually grown quite differently. From a total global debt estimate perspective, back in 2008, we were looking at about a hundred eighty trillion dollars of total global debt. Today sitting here sort of first quarter 2020, we are looking at more than 250 trillion. So we have definitely seen continued growth of debt. Sort of 1.7 multiple from where we were 12 years ago. Let's look at household debt since that's what we are all familiar with. We have seen household that grown by about 1.7 multiple. Student debt has been something that we have been talking about a lot. Student debt has actually grown from about 600 billion in 2008 to about 1.4 trillion. So when you do the math, that's about a 2.4 multiple over the 12 years period. So compare that to the household debt, we have actually seen a faster growth of student debt. Global corporate debt is now above $29 trillion, with around one-quarter maturing over five years. Corporate debt is actually a tale of two worlds. When you look at the financial institutions, the banks, and the like. The debt has actually stabilized around the same level as it was in 2008. So we have seen maybe a small five or ten percent growth on the debt level for financial institutions. For nonfinancial institutions, on the other hand, as a lot of companies have really tried to take advantage of this low-interest-rate environment, their debt has grown much more than financial institutions. By my estimate, it's grown about 1.7 multiple from twelve years ago. Corporations are borrowing money that can only be paid back if profits increase, but 70% of the US economy is generated by consumer spending. The average U.S. household has $7,000 in credit card debt and pays more than $1,000 a year in interest. From 2008 to today, a lot of governments got involved in quantitative easing, QE. And part of a QE requires the government to put a lot of liquidity into the marketplace, and therefore, a lot of government had to take on the additional burden of debt to make that possible. So a government debt that has grown about 1.8 multiple over the last twelve years. From about 40 trillion up to close to 70 trillion. So that's on a global footprint. That's how we see government debt. And from that group, we see one of the countries standing out as an outlier, that's China. In 2008 our estimate is there were about 7 trillion dollars of Chinese government debt. And today, there are around 40 trillion dollars of Chinese government debt. So when we do the math, it's almost a six-times multiple over the last 12 years. So we can definitely see a different pace of different countries picking up additional debt to their debt load. The world's already gigantic debt load broke the record for the highest debt-to-GDP ratio before 2019 was even over. As a matter of fact, it already broke that record in the first nine months of 2019. Global debt, which includes borrowings from households, governments, and companies, rose by $9 trillion to approximately $253 trillion throughout that period. That places the global debt-to-GDP ratio at 322%, tightly outpacing 2016 as the highest level on record. More than half of this vast number was amassed in developed markets, such as the United States and Europe, bringing their debt-to-GDP ratio to 383% as a whole. There is a large number of culprits for this Global debt increase. Countries such as New Zealand, Switzerland, and Norway all have growing household debt levels, whereas the government debt-to-GDP ratios in the United States and Australia are at all-time highs. In emerging markets, debt levels are still lower, for a total amount of $72 trillion, but they have expanded faster over the last few years. For example, China's ratio of debt to GDP is nearing 310%, the highest level in the developing world. Watch emerging market debt. It's all dollar-denominated. The defaults come when the emerging market currencies start to go into the toilet versus the dollar. They have to repay in dollars, and the cost of acquiring those dollars will go hockey stick quickly. The bitch of it: dollars are, by no means, in short, enough supply to justify emerging market exchange rates to go hockey stick on that metric alone. The world is swimming in dollars. Countries are looking to trade out of their dollars (Treasuries) by taking our frack oil in return for them. And we have Repo Madness. The emerging market currencies versus the dollar will very quickly be shown as a case of trading for the best horse in the glue factory, causing a massive dollar bubble, which will be one of the last to pop. Such gargantuan worldwide debt is a real risk for the global economy, especially as experts expect levels to grow even further in 2020. Encouraged by low-interest rates and loose financial conditions. The Federal Reserve lowered interest rates three times last year, and the European Central Bank's benchmark rate is still at its post-financial crisis lows. The master plan is quite simple. The plan is for the US always to have a better interest rate than their slave economies: Japan (Bank of Japan), Europe (ECB), UK (Bank Of England). The US and US economy need only to appear in better shape as the best in the basket of the many already in BIG trouble world economies to continue to receive the money flow from all over the world, making the US and US elite richer and richer and even more powerful. That means, if rates in the US are at 1.5% then rates in Japan, Europe, the UK should be much worse than that. As long as the wealth transfer from the middle-class worldwide to the US and US elite hands continue, they are very satisfied and delighted with that. In spite of advantageous borrowing conditions, the refinancing risk is enormous. As a total of more than $19 trillion of syndicated loans and bonds will mature in 2020. It's unthinkable that all of these will be refinanced or repaid. ALL of that debt is bad debt. This is going to culminate in the greatest hoovering of leftover capital ever, without exception. And we haven't discussed pensions. A sovereign debt crisis will almost always be accompanied by a banking crisis or trade crisis, a currency crisis, sometimes a social crisis. The pressure on the politicians who are there when the crisis begins is intense because they all know that history suggests that the politicians there when a crisis begins are rarely the ones there when it ends. All the conditions are in place for another crash. Trump drained the swamp by effectively bringing Goldman Sachs and a bunch of casino capitalists into his administration. Government Sachs as it's now known. American was to be a Credit nation, not a Debt nation. A Debt nation, where everyone is a slave to the Banks, is no longer a Republic. Killing Glass-Steagall made it once again possible for bankers to create all the money and decide what to loan it out for, even if it was speculative, and it sure has been. 1.4 Quadrillion dollars derivatives held by the banks, the most in debt of all. We are now living in a state of neofeudalism. Capitalism has not existed in 100 years. We have bankers and corporations who are in bed with the state. Everyone pays their dues to the rent-seekers. Everyone gets poor while a few at the top get rich. Increase debts which the suffering masses can be squeezed for in order to increase bank balances in the Caymans and Wall Street! Skid Row sends its best wishes! The system is broken, and we can't seem to be bothered to really fix it. Let's hit rock bottom soon. Then we don't have a choice anymore. People don't change until they have to anyway. But our society just wants to find ways to keep the dead beast moving. The longer we wait, the worse it will be. One thing is for sure, the average person, the worker who puts their labor into making this world and the wealth that it has, will get screwed over, while a few elites will benefit enormously. It's not coincidental that governments are showing new totalitarian stripes. Pathocracy puts continuity of pathocracy before all other considerations. Because they know that at some point, their debt-based Babylonian Ponzi scheme would become public knowledge, and they would have to contend with 7 billion angry people. They are prepared to annihilate most all biped life on earth in order to take earth and the resources for themselves. This is the problem when the citizenry doesn’t cut off wickedness before it blossoms this far. Greed and bribery tempted our leaders who threw us and the world under the bus. They have been planning for this day for a very long time. The result will be devastation. ALL Central banks are a criminal fraud based Unconstitutional banking system. The biggest scam ever perpetrated against the good peoples of planet earth. Central banks create backed by nothing debt notes out of thin air, charged to peoples of each country at full face value plus interest that never existed and can NEVER be repaid. Criminal central banks are a communist Marxist socialist system designed to enslave all peoples in every country on planet earth except criminal bankers. When they crash the world's central banking system, it will be as designed to bring about one-world government and monetary system. No middle class, no armed citizenry, no creator endowed inalienable rights. The whole show will come crashing down one of these days, maybe in a month, maybe in six months, maybe in 10 years. NOBODY knows. One thing is certain; the banks and the federal governments will get a debt jubilee, but not the working people. The future could be a civil war. This was The Atlantis Report. Please Like. Share. And Subscribe. Thank You.
The Financial Armageddon Economic Collapse Blog tracks trends and forecasts , futurists , visionaries , free investigative journalists , researchers , Whistelblowers , truthers and many more
No comments:
Post a Comment