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This Is The Biggest Problem Facing The World Today: 9 Countries Have Debt-To-GDP Over 300%
If anyone has stopped to ask just why global central banks are in such a rush to create inflation (but only controlled inflation, not runaway hyperinflation... of course when they fail with the "controlled" part the money paradrop is only a matter of time) over the past 5 years, and have printed over $12 trillion in credit-money since Lehman, the bulk of which has ended up in the stock market, and which for the first time ever are about to monetize all global sovereign debt issuance in 2015, the answer is simple, and can be seen on the chart below.
It also shows the biggest problem facing the world today, namely that at least 9 countries have debt/GDP above 300%, and that a whopping 39% countries have debt-to-GDP of over 100%!
We have written on this topic on countless occasions in the past, so we will be brief: either the Fed inflates this debt away, or one can kiss any hope of economic growth goodbye, even if that means even more central bank rate cuts, more QEs everywhere, and stock markets trading at +? while the middle class around the globe disappears and only the 0.001% is left standing.
Finally, those curious just how the world got to this unprecedented and sorry state, this full breakdown courtesy of McKinsey should answer all questions.
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Fuck yeah. USA is ahead of China!
Time to print money to cancel the debt.
Wee Tu Hai! Bang Ding Au!
Just print MOAR money and keep the party going!
It's great to see all those first world nations leading in something. We must seize this opportunity to raise taxes and increase social welfare programs.
YUP, here come the rate hikes...... pff.
This just shows why stocks are undervalued. /s
Good to see that the PIIGS are still PIIGS!
400% Debt/Gdp...
WHY is Japan Still Considered Solvent With A Viable Banking System ??????????????
Those pesky Ruskies with a 65% debt to GDP ratio are friggin' commies.
How dare they.
Japan ... 400% Debt/Gdp... And Not To Mention The 900% Air/Cesium Isotope Ratio
That BRICS banking system growing up in parallel might be really useful soon, huh?
Yeah, Russia does not even make the list.
They must be punished.
Someone must liberate their gold, they are obviously not good stewards of the NWO
Debt to GDP is not the biggest problem we are facing. The biggest problems is corrupt fools in government. Debt is but a symptom.
You're just being racist.
I strongly believe we should institute a global tax system so that people can live their lives without working.
This unpayable debt is just a feature of a debt based monetary system. As mises said:
"There is no means to avoiding the final collapse of a boom brought on by credit expansion. The alternative is only whether the crisis should come sooner as a result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved.”
The longest boom resulting in a crash prior to this point was the 30 years leading up to the Great Depression. Since it was the longest sustained boom to that point it was the largest bust. Now consider that the latest boom has been going on for over 70 years!!! What do you think our crash will look like.
Here is a good overview of what I am talking about. Well worth the read. It is fairly long and starts slow but the best I have seen.
http://debtcrash.blogspot.com/2015/02/history-and-introduction.html
Maybe someone can organize the Debt Olympics?
Maybe this way people can be fooled into going for gold while marching towards disaster.
How much do y'all want to bet that if the US still actually ACCURATELY calculated GDP instead of the professional wishcasting accepted as GAAP that we would be close to 500% +?
I was under the impression that Public Debt - Government debt issued by the Treasury just hit $18T.
I also thought our GDP was ~ $18T. So are we saying that Corporate Debt, Household debt etc is ~ $18T
$36T/$18T = 200%?????
https://homes.yahoo.com/news/states-where-the-middle-class-is-shrinking-...
"We can grow our way out."
... maybe not.
California for the win.
Article does have an error though, states that 7.25 sales tax in CA is the highest rate. In Texas it is as high as 8.75 IIRC.
Sales tax in California is around 9% in most counties.
We've always borrowed our way out of debt.
I don't think any of the Fannie May/Freddie Mac debt is included in the Public debt figure so that will bump it up some.
I see we have the first participant going for Gold! :-)
"When a measure becomes a target, it ceases to be a good measure."
Goodhart's law is named after the banker who originated it, Charles Goodhart. Its most popular formulation is: "When a measure becomes a target, it ceases to be a good measure."
The original formulation by Goodhart, a former advisor to the Bank of England and Emeritus Professor at the London School of Economics, is this: "As soon as the government attempts to regulate any particular set of financial assets, these become unreliable as indicators of economic trends."
Russia, I had to go thru the list twice to make sure. Damn, managable debt and still buying gold.
Hmmmmmm................
Like Iran and Syria, another pair not making the list.
dupe
This chart states Russia's debt to GDP is only 13.41%
http://www.tradingeconomics.com/russia/government-debt-to-gdp
meanwhile they've been stackin' phyzz like crazy and probabaly have over 10,000 tons of gold. Some estimate more.
China has a very high debt to GDP percentage as well, but they also hold 2 Trillion in U.S. treasuries and can sell that shit off slowly and buy up "stuff" like gold. The estimates on China's gold reserves range anywhere from 15,000 to 30,000 tons, but they won't say for sure.
What do they care what their debt is anyway when they can use worthless U.S. treasuries to pay it off with and keep stacking gold?
Once this Ponzi monetary system collapses, those who hold the most gold will win.
Russia debt is about 14 pewxwnr and expected to rise by 80 percent .. BUT they will STILL be better off than USSA let alone Japan or UK.
Sorry but China only holds $1.2T or less of treasuries. Being 40% off doesn't get a pass.
THERE IS NO MISTAKE THEN!
Mooky's, flatch and Stabdard & Poor are useless, does anyone really accpet thes private companies as unbiased mark to market agencies.
http://www.businessinsider.com/dagong-downgrades-us-to-a--2013-10?IR=T
http://rt.com/business/222175-russia-china-rating-agency/
and now the cartoon section
CNBC: Obama Plan to Monetize the Debt/Stimulus = Ponzi Scheme
The carry trade and Jap. pensions. When they have been completely sucked dry, they will be allowed to collapse. The MSM will report 'Who'd-a-knowed?'.
On the count of three , everybody moves the decimal two positions to the left...
True, and I always laugh when I hear the Yen referred to as a "safe haven" currency!!!
Because debt doesnt matter if you can just print more money and take on more debt.
In a few years this topic will be; "This Is The Biggest Problem Facing The World Today: 9 Countries Have Debt-To-GDP Over 1000%"
It's even funnier once one realizes that GDP equals "Government Destruction of Production" as it includes parasitic third-party gov. consumption (which, in an honest world, should be subtracted).
tick tick tick tick tick tick tick tick tick tick tick tick tick tick tick tick tick tick tick tick tick tick tick tick
Data like these prove we're going to see PMs rise substantially as John Williams and many others predict due to currency devaluation [i.e., infalting away the debt].
Timing is the tough part but when it starts, the momentum of devaluation [and rise in hard asset prices] will be stunning.
Iran? South Korea? Cuba? Even Russia? Nowhere to be seen on this list.
South Korea is there but your point on Iran and Russia is well taken.
Sorry, I meant those meddling Norks.
Generally speaking it's really not a positive when the reason you don't have any debt is because you don't have an economy. Just sayin'.
That is perfect proof of how bad the Russian and Iranian economies are. Sanctions FTW!
Those countries (some in the axis of evil, remember that beaut?) aren't in, or are leaving the banking(debt slave system) system. That means war!
How nice it is to live in a western country and pretend that we have money!!!!!!
That's right, Don't wait, just go borrow the money and buy it NOW!
Worry about how long you will be a debt slave later!
I would say the biggest problem is fractional reserve banking. Maybe my view is a bit too macro?
pods
And we still accept to be paid in these little colored papers.
We have no choice because we have to pay taxes in these little colored papers.
I don't see many of those monopoly money colored papers anymore, I believe I am paying taxes on zeros and ones.
You think not, but you actually do. A cheque or wire transfer is still in Dollars, you can't pay taxes in gold, silver, oil, grain or bitcoin.
...nor can you pay your taxes in any foreign currency.
By its onerous nature alone, taxation makes it too expensive for any agent in the economy to engage any substantive trade in a competing currency. The government does not really need to collect taxes from us to manage their budgets save for the fact that they must compel us to trade in the money they print for themselves. Taxation makes the fiat-fractional game possible.
If not for taxation, good money would chase bad money out.
I agree, taxes are a tool of the power, nothing more.
Even the paper standard will be too difficult to hold together. Something virtual would better suit the banksters.
The government will never get rid of cash.
The deep state depends on cash.
Paul Krugman says we owe all this debt to ourselves so it doesn't count. Besides the top ticks are printing themselves into prosperity so if you have more debt your richer.... or something along that line
pass the Duchie on the left hand side and chill man
I think it's the same as a cell mutation causes cancer. Fractional reserve banking creates unpayable debt.
"The few who could understand the system will either be so interested in its profits, or so dependent on its favours, that there will be no opposition from that class, while on the other hand, the great body of the people mentally incapable of comprehending the tremendous advantage that capital derives from the system, will bear its burdens without complaint, and perhaps without even suspecting that the system is inimical to their interests."
+1,000
Hold on Pods, Nobel winning Economist The Dr. Paul Krugman would argue that the best way to attack a debt/credit bubble is with more borrowing from the government. I can't beleive that an award winning genius like the Paul the Great could be wrong. If 300% debt to GDP is bad, then these nations simply need to borrow more and get to 500% debt/GDP. See problem fixed.
I mean there might be a flaw in this logic, but I don't see it.
Sarc or not. There IS a flaw in this logic and it is the core of the problem. The money created is supposedly based on the faith of others have on the American people to produce in the future. The problem is that the Fed owns the money and in turn the future productivity of the people . Who give the right to the FED banks to claim everything that is ours for themselves ? Everyone is too lazey to pick up the fork to stick it into the ass of the greedy thieves.
If the debt created is owned to ourselves. the value of the dollar will decrease and people with the money will spend and we get out of the debt problem and go on from there.
Next time they print more, you need to ask into whose pocket the money goes.
It's a big fucking club, and you ain't in it.
Sir George Carlin
One of the best bits ever, hands down.
Add to this, the fact that the 'taxable' means of production have been offshored. Therefore, they will have to attack savings, in the future, via inflation and taxes. It's baked in the cake. Retiring baby boomers beware. Your lifestyle may decline far further in retirement when your pensions are stolen.
I agree totally. If the insane reasoning is valid and we "owe it to ourselves" then let's have a debt holiday and simply start all over. Just think, no mortgages, no debt, zero it all out. After all we owe it to ourselves right so we can "be happy". And the poor slugs that don't have anydebt, all the downtrodden. Fuckem. They will soon have a job cause I can start borrowing on assets and start dancing all over agin. Bond holders? Well they were gonna get screwed anyhow it was all just a matter of time.
Paul Krugman never won the Noble price. You can stop here.
'The cult did this by virtue of a very simple scam. It interjected itself between the state and its people by creating the medium of exchange (money) as an interest-bearing debt to itself. Money creation is something the State is perfectly capable of doing itself, without incurring any debt nor paying any interest.
This fundamental fraud is the explanation for almost everything that has gone wrong with the world.
In order to distract society from the real enemy gnawing at its heart, the central bankers have always created a series of phony enemies and unnecessary wars. '
.
http://henrymakow.com/2015/02/Central-Bank-Scam-Explains-World.html
exactly right.........
''The entire SYSTEM of money is obsolete and a dangerous anachronism now. But there is NO OTHER WAY for bankers and the banking clans to make free money unless they can parasite off the backs of growth.
I have no clue why people are surprised by what is occurring; Jefferson knew this system in the 1700s. It is old. Banks have PLENARY control over our money. We cannot get it or use it without PAYING THEM INTEREST on it.
The reason why "credit" is called the lifeblood is because our system makes credit=money.''.......trav7777
The revolution was about debt slavery, I'm sure.
Tulip bulb mania followed this.
http://en.wikipedia.org/wiki/Bank_of_Amsterdam
This,
http://en.wikipedia.org/wiki/Bank_of_England
led to this,
http://en.wikipedia.org/wiki/South_Sea_Company
Last paragraph,
The company continued its trade (when not interrupted by war) until the end of the Seven Years' War (1756–1763). However, its main function was always managing government debt, rather than trading with the Spanish colonies. The South Sea Company continued its management of the part of the National Debt until it was disestablished in 1853, at which point the debt was reconsolidated. The debt was not paid off by World War I, at which point it was consolidated again, under terms that allowed the government to avoid paying down the principal. The remainder was paid off in 2014.[48]
Usurious I miss ole Trav. He could really rile up the commenters along with some of the other old timers!
The problem is with those who control the rate and where to spend the profit, Wars, Coke and Chicks are so old fashion.
Dont forget the Coke and Chicks
"Just print MOAR money and keep the party going!"
No, Latina lover. The moar money you print, the moar debt you create.
http://www.peakprosperity.com/crash-course-classic-version
3 reasons this is sad!
1) imagine what these assholes are leaving to our kids and grandkids.
2) They are going to have to start a war with ISIS, to make more money.
3) If you have a $20,000 loan you cant pay off, why wouldnt you go to another bank, and get another loan of $20,000 to pay off your first existing one. The thing is this is effing stupid, but exactly what the govt are doing printing off money, out of thin air. It will end in tragedy, and probably crash the market.
Speaking of which.....the market is already full of greed, and making other ZH very nervous. CHART HERE - INDICATOR FEAR / GREED Awww god! > http://bit.ly/1fMcakI
It looks like its all GREED right now, and YELLEN is about to open her big trap......UH OH!!!! I get a tingling in my scrotum, something is coming.
Fun fact my name in traditional mandarin is hung wei low.
Either way, nice work canada. This as well as having enough currency out there to choke a googol billygoats.
At least we're beating China in something. /roll
and Russia didn't even make the list!
They are SO isolated...
If I had $100,000 in assets and $233,000 in debt I would be considered a dead beat, insolvent, flat broke, extreme credit risk, bankrupt. So what is the difference between me and the US with 233% debt to GDP ratio? Two words: printing press.
my co-worker's ex-wife makes $80 hourly on the computer . She has been out of work for 10 months but last month her paycheck was $12310 just working on the computer for a few hours. look at this now... www.globe-report.com
Where's Russia?
(Hint: It's lower than any of those on the list).
DavidC
Problem? Nope. Bullish!
The obvious solution is to add a zero to every country's GDP.
don't laugh i'm sure that it was the other choice with the "add hookers and coke " program....
I wonder how much coke Zoelick can buy with $100T.
I don't know but wide eyed fun is on the menu.
maybe that's another reason they're legalizing weed, adds to GDP
of course it's a problem, but it's too a problem when you sum up all this debt, then debt is not created equal
sovereign debt is not the same as corporate debt and it's not the same as private debt, where student debt is not equal to mortgages or other asset-backed debt
so this ranking does not help to understand anything. some of the leaders of the board, including Japan, have little external debt, for example. that's "sturdier" debt, usually
others have little and/or depreciating assets to back them, and others have rehypothecation gone mad, of the kind that is capable of sucking all currency in when in trouble
You mean that debt to yourself is something that you don't need to pay ? Well, happy retirement then...
ever heard about maturity, for example? or marketability of debt? or... yeach... ratings? or even more mundanely, how likely a CB is to buy up that debt? likeness of default? of currency depreciation?
nope, not all debt is created equal, otherwise Japan would have already been splattered across that windshield, and Russia would not have currency problems. that this is not obvious is beyond me
Ever heard of counterparty risk?
In a world where everything is fractionally reserved and levered to beyond the hilt, all debt is suspect, and that includes debt-money.
What about foreign or domestic debt? Or debt issued under domestic or foreign law? Ask Argentina, there they have learned about the difference!
I have news for you. Marketability of sovereign debt goes asymptotically to zero over time, hence the need for the central banks to soak up all the unsold bonds. Right now, JCB, ECB and FED are all in such a situation, in various degrees ranging from a 100% for JCB to over 50% for FED. Now then, are you gonna talk to me about "ratings" and "currency depreciation" in a pseudo-market rigged to the bone by the same central banks which are buying their own debt hand over fist, and then pretend to play the "objective judge" role when it comes to other peoples' economies ?? I didn't think so... The moment the USD position as "reserve currency" is put in doubt, the whole game is blown to pieces, regardless of FOREX maneuvering, inter-banking currency swaps, rigged pseudo-ratings, propaganda mouthpieces posing as independent analysts, and any other dirty trick from the big "Finances for Crooks" book. This much is obvious and (of course) beyond you, since you are nothing more than a troll for the establishment.
P.S. Japan is already pretty much splattered all over the windshield. Is just that the rest of the "boys" are still pretending not to notice its blood and guts obstructing the view...
Debt to yourselves are paid by inflatioin, simple as that. We cant even have inflation to cheapen the value of the debt because the money printed was not given to us, only the debt. If this is not stealing I dont know what is. Only a revolution where those in charge are arrested for treason will this country recover.
Is there any strain of conventional ignorance that you don't promote? Your entire point merely illuminates which people are the ultimate losers. All you've done is to point out that the Japanese citizens are willing to suck-up and bear the damage of the psycopaths running the local show. All I see is that they value saving face more than actually surviving as a culture. A fact that is evidenced by their collapsing birth rates.
Pretend your collectivst fantasies have meaning while ignoring the individuals that get destroyed in the process. You sir, are pure evil wrapped in wishful thinking.
You could not be more inhumane if you tried, as apathy is the ultimate form of evil.
LOL. you mean that, don't you? according to your logic, the very moment I would accept an IOU from you, I'd be the next loser and you an evil person? and what has the "collectivist fantasies" to do in a world where there is plenty of private debt to private persons?
spare me your simplistic debt-morals-upturnings. I am an amateur historian, and this is the angle I use. Care to talk about the Reforms of Solon? debt is an old human problem, and every age had to find a solution
you want a humanistic appeal? here it is: US UNDEFAULTABLE STUDENT DEBT IS IMMORAL AND SHOULD BE MADE ILLEGAL AGAIN, IMMEDIATELY
Another free lunch for the irresponsible paid by the average tax payer?
UNDEFAULTABLE STUDENT DEBT - isn't that the definition of slavery?
You can't repossess an education.
Keeping it simple. TOO MUCH DEBT. IT IS NOT GOING AWAY.
A world of upside down nations populated with upside down citizens.
There is no fix.
Of course it is going away and there is a fix.
There is the easy and correct way ot fix it - let the lenders lose ont he bad debts.
And thent here is the way it will be fixed. Print money and destroy the currencies to pay off bad debt and protect lenders. This will wipe out th emiddle class and destroy society. But it will protect the bureaucrats and their friends in banking so that's the way it will go down.
Roberts English Series strikes again!
It can't be paid. If Uncle Sam paid all of his bills tomorrow, if I understand this correctly, there would be a massive collapse in the money supply (which is obviously deflationary). Not going to happen.
look, making real products of real value requires that you have cheap energy and commodities... otherwise growth is impossible as a tremendous amount of energy and commodities are required in order to simply maintain the status quo...
So the "fix" is easy, just make more and more of your GDP simply useless paper-pushing bullshit....
I often wonder why a decent carpenter or engineer can't get access to hundreds of billions at ZERO percent interest like the useless bankers and financiers...
Retribution will be paid motherfuckers...
tick tock.
So we have cheap energy. Where's the growth?
I contend that all growth depends upon a popular perception that we face an optimistic future. Everyone wants to break our economy down to simple math when in reality (and what we see in practice today) is that is largely driven by perception. We need to believe in a future and what we see now is actually the opposite. Those harvesting the greatest wealth are those anticipating failure in anything but the most immediate future. Sure, we can't grow without resources, but neither can we grow if no one is willing to work and defer their "now" for the future. Instead we consume our "now" because we see no future.
The growth was all borrowed in the past.
The "cheap energy" is being used to simply maintain a decent standard of living asshat. Moreover, we have not had these prices for very long, nor will we.
In terms of Energy Returned on Energy Invested, there is no such thing as "cheap energy".
Paper bullshit and fiat price is really fucking irrelevant in the long run.
Simply put, there are now 7.5 billion people (and growing) all demanding a better quality of life and all the resources that make that possible, hence, there is plenty of demand.
Asshat....nice!
People are only demanding what they are told to demand. How much energy does an IPad and an efficiency apartment consume, especially if you don't have to drive to work. What cheap energy offers is something for nothing. A gasoline engine to till our soil rather than walking behind a mule, a time which most people were employed, admittedly at jobs they were too good to do if they had only been told. Energy is simply another labor saving technology and ultimately can be replaced by other technology, especially if we are indoctrinated or otherwise manipulated into a more "desirable" lifestyle. Growth is an invention of those seeking to harness our productivity. We could...and have in history, cared and fed ourselves with no help of "growth", supplied by technology or energy. We are simply spoiled by cheap energy, cheap technology, cheap credit, to believe we deserve a better life, an easier life, that ultimately can ONLY be supplied by our benevolent government. All we need is deliberate delusion and the willingness to prosper from the theft of the future.
Good big picture, Tyler, thank you.
Years of ZIRP and NIRP confirm that while we may pass in and out of 'recession', what we are in is a Greatest DEPRESSION, the likes of which the world has never known.
Interest rates are low to non-existent not b/c of 'confidence', but b/c these central banks can no longer afford to pay any interest at all as the credit markets continue slow self-perpetuating collapse.
CRF recommended that central banks begin handing money directly to the people. I wonder if NIRP is one way to do this. Could negative-interest mortgages be in our future? Hard to picture but economics has resembled bad science fiction for a few years now. The credit markets resemble a stellar implosion, forever collapsing into its singularity.
Please, it is NOT "lending" when the "money" is being printed out of thin fucking air!!!
If the money was coming from savings, then it would be "lending."
Correct.........Banks are borrowers, not lenders..
Mako considered virtually all humans to be bankers
Greened you for the Travel 777 & Mako refs.
<<it is NOT "lending" when the "money" is being printed out of thin fucking air!!!>>
Agreed, which is why I did not say that.
(I said, handing money to people, not lending money to people. Shoulda put 'money' in quote marks, tho.)
Negative mortgages might sound like REALLY bad sci-fi, but bear with me here:
1) CFR tells its minions to hand money directly to people. Understood, that people means borrowers, not savers (if anyone can be called a saver in a fiat frac-res system). CFR is happy b/c their recommendations are being followed, which makes them still relevant.
2) Neg-rate mortgages keep asset prices high, even send them higher. Mortgage 'lending' restarted and refinancing takes off. Mondo fees collected.
3) Whiners who were already on interest-accruing mortgages, can simply refinance if they hurry on this limited time offer! Whiners now happy, no mo tears.
4) Dead housing market stirs back to life. First-time buyers back in. Big institutional players also probably back in. Real estate saleshelp, mortgage brokers, construction, jobs jobs jobs! Debt industry and credit ratings relevant again. ("Sorry, your credit score isn't high enough for our neg-rate plan, but you can raise it with this low low interest-accruing mortgage or apply for one of our credit cards...")
4a) You could even tie neg-rate mortages to extra conditions, if you want. ("You can qualify for our new neg-rate product if you agree to participate in our program of home testing. Install any two of the following government-approved monitoring products in your home, and watch your mortgage melt DOWN as your credit score melts UP. And we'll throw in a free credit card!") Hell, tie it to military service, even, and other 'encouraged' professions.
5) Years or even decades of 'performing' loans on the books. 'Mark to market' safe again for some hero banks. BONUS: can still raise interest rates at any time on the army of brand-new 30-year (or 100-year) commitments by ARM suckers.
6) Population happy, Free Shit! and People Not Banks! hue and cry, mondo 'votes', pollies elected.
Win! Win! Win! It practically writes itself.
Oh, and:
7) Really bad idea.
So I think they might try it.
Who needs interest? Gold don't earn interest, and you bugs think of THAT as money!
(/sarc if it needs to be said.)
I always think in terms of how they're going to fuck the most people. With negative rates the way to fuck you is deflation, make it impossible to pay off that enormous loan you took out cause it was a no brainer. Stay away from debt. It may make sense, you may make money doing it but you're at their mercy. And, you know by know that they'll change the rules when they feel like it and prior contractural obligations mean shit if you're TBTF.
Sum Ting Wong ?
soon shi tin fan
They need to open-source money creation and then we'll all be rich.
true, paper and ink sales would likely suffer tho ... probably in excess of 40% of the US economy is parasitic, non value added, drag .. it's 45 deg. F in my cabin at present, and dropping .. there is no mail box money for people like me, no work, and we are no longer f*cking amused
Not sure what the problem is in the short to medium term from the point of view of the central planners.
The IMF will simply move the unpayable debts from the countries on the top of that list onto the citizens of the countries lower on the list.
Now go ask a Keynsian what happens when we run out of people lower on the list and you will get a sigh and an eyeroll as if you are the most clueless son-of-a-bitch they ever had to suffer.
" Just dump all that debt together into one high yield World Debt Superbond "!
~ The Squid
Just need a "one world electronic currency" to tie it all together!
How dumb or desperate do you have to be to lend to these countries?
Only the Central Banks have that kind of money. It's all an illusion, don't you see? It's like the alledged Greek "debt": the overwhelming bulk of it was just merely cycled through the Greek banking system, though the bill is handed over to the taxpayers in its entirety. Only a trickle reached the Greek people themselves, however.
Just. Like. America. The "debt" is a magical mystery tour..
Note that the debt load is vastly greater than the total amount of wealth actually produced by the entire planet. Where did they get all that cash?? : ) I mean seriously, have your questioned how it is even possible for a handfull of men to save up enough to "lend" to a entire World of "deadbeats"?
"I mean seriously, have your questioned how it is even possible for a handfull of men to save up enough to "lend" to a entire World of "deadbeats"?"
That question is the one that woke me up to the fraud, lies and ponzi of the CB's and their direct enablers in .gov 10 years ago. I had to know who saved enough money to buy all these bonds where did it all come from at first just because i was trying to emulate the strategy to have it myself.. Then I realized they did not exist and neither did the money/savings..
Lend? LMFAO!!! All of the countries are essentially directly monetizing!!!!
Gee, look where Russia's debt/gdp is @. No wonder why the oligarchs are foaming @ the mouth!
BTW here's the laest tech gadget the yids are working on: https://www.youtube.com/watch?v=9J7GpVQCfms
note: You might want to mute the annoyingly repetitive smarmy tune...
One reason why, I would posit, that Russian investments are tremendously undervalued at the moment. All I hear from people around me (in the West) is that Russia lacks the institutions to be profitable as an investment. Political risk yadda yadda yadda.
(Apparently nobody has been reading the news headlines since QE started.)
KnC,
You can't be that stupid
I admit I did not click the video link. Funny.
Of course not. You may have seen something new...
I do not believe that it will be a marketing success. I may be wrong. I will not be lining up to buy one. But it is a novelty.
That is either a video of a work-in-progress concept, or just a scam to extract money from people.
Someone has superimposed their screen over their arm. The website link does not work, it directs to a wordpress page. They don't even have a prototype yet. I'm all for electronic gadgets and technological progress, but wake me up when they actually have something tangible to lay a claim to.
Because y'know, I can set up a small business and claim to have genetically modified ponies into unicorns, or claim to have invented a perpetual motion generator. Just because I make a neat promo video, does not make it so.
Edit: And just to be clear, I am all for tech. development (I have spent thousands of hours in a laboratory myself), but I need to see a little more substance to a new technology before I get all giddy about said gadget. There is a long (and arduous) path to take between "idea" and "finished/commercialized product".
LEL, but what if you're a brother and you want a Cicret bracet?
That's a funny, funny video. And hey, if it can work on your wrist, think of the more "adult" applications. Technology x Internet devices x Porn = Fortune!
The OrgasmaticTM...
Coming soon???
Debt:GDP is pretty vague. Is this aggregate debt across all sectors of the economy? Ie: Public, private and household? Is the debt held internally or externally?
Quite a lot of information missing. If this is Sovereign Debt to GDP, I would like to see the hyperlink, or take a look at how it was calculated. Looks to be above most typical sources (which, admittedly are Govt. or Govt. affiliated) but, nevertheless I am curious to see this.
Exactly. What kind of debt are we talking about here?
I'd agree in principle that you can't borrow your way out of debt, nor get rid of it via hocus-pocus (see, "Greece"). But without knowing what kind of debt this is, it's hard to know what to make of this ratio.
Regardless, it does illustrate the problem with financialization. When all resources are chained to debt service, it's all over. And that is the logical, inevitable outcome of a system based on debt, requiring infinite growth, in a finite world.
To rank Japan at the top, this must include Sovereign Debt in some measure. My understanding was, however, that Japan had not yet breached the 300% debt:gdp ratio. The Netherlands was less that 100% last I checked.
It cannot be aggregate debt either (all sectors), because if that was the case, Ireland would (and should) be ranked at the top, followed by Great Britain.
Maybe I am missing something here, or looking at skewed statistics. Either that or the GDP of The Netherlands has shrunk an awful lot in the last 5 years, or spent a hell of a lot, or both (and I do not believe this is the case.)
Edit: Thus I will reiterate that it would be great to view the calculations though, or see the raw data to understand how these measures were constructed. I'm equal parts curious as to whether the calculations are misleading, or whether the official government figures which I know are bogus.
''Our monetary system has been picking our pockets for a century.
This is the real scam.
People cannot see the forest for the trees. When you let institutions or people earn interest on the issuance of money such that the mere presence of money means that someone is owed a vig, you have a system which is mathematically and morally bankrupt''
trav7777-2010
A century? Try many centuries. Seniorage is not a 20th century phenomenon.
So, what is GDP actually....output of a country, right? So all debt of that country combined divided by GDP should give you a real calculation of the ability of the country to borrow more and pay it back....
Like you and your wife. Together you have some amount of borrowing together, but let's say your wife went out and got 20 credit cards on her own and ran the limit up. To judge how worthy you are to borrow more and pay it back all debt needs to be rolled together and compared to your income. That is this 'ratio'.
You're oversimplifying. Here is why:
Debt within different segments of the economy is easier to extinguish. For instance, overleveraged businesses (private sector debt) can go bankrupt. The debt will be written off and the assets would be sold on the open market*. This makes the debt easier to extinguish and work out of the system.
Again, most forms of household debt can be extinguished. See: credit cards, mortgages etc. Though it is painful for the individual and might fuck up your credit rating for a decade, it can be extinguished. (Note: exceptions to this rule seem to be student loans under newer loan regimes.)
Public sector debt (sovereign debt) on the other hand is very difficult to extinguish. The government afterall, is the lender of last resort. Who would cover government liabilities if they run out of check? How do governments go bankrupt? Well.. they can, and have, but often with fairly volatile social consequences. There are a range of policy options and consequences which come with each.
Note: there is a further subdivision for sovereign debt which is internally held debt vs. externally held debt. Internally held debt (such as Japan which holds most of its sovereign debt inside the national markets) means that they answer to their people/corporations. Externally held debt (such as most of the European nations) tend to lead to frictions with external creditors. Gunboat diplomacy, sanctions, wars etc. are all potential tools which could be utilized to enforce debts.
As for Debt:GDP, it is a ratio, so it is potentially misleading. If I go from 100% to 150% debt/gdp, which part of the ratio is changing relative to the other? Is the numerator rising? Is the denominator shrinking? Are both occurring simultaneously? We could only really say conclusively that the rate of increase of the numerator > rate of increase of denominator.
So yeah, your analogy is fine, but depending on the type and nature of the debt, and how it is calculated, there is a potential to mislead in just labelling it as Debt:GDP.
*Prior to 2008 where governments decided that mark-to-market was best applied to everyone who wasn't funding their campaigns. Obviously financial sector debt (according to some people who stand to lose a lot) is ideally shifted into the public sector where the taxpayers foot the bill.
If you want to be really depresssed, look at corporate profits after taxes and incomes relative to debt.
That is the place where the money will come from to pay off the debt...if that were to ever actually happen.
Well, they could take your saved assets too. But that wll result in more than just grumbling.
This is only a symptom of a much larger problem. The problem is, that the world has let bankers make fiat money that they completely control. If you control all the money, shit isn't going to work out too good for everyone else.
While charts like this are fine and, dare I say it, rather entertaining, I think it should be taken as a given that many countries are leveraged to the hilt. I get that, I really do.
What would be more interesting is either WHO is most likely to fall (after all, you can be the most leveraged yet someone else less leveraged could be in a more vulnerable position) and/or WHAT is the most likely factor to start this all off.
Answers to those questions, in my opinion, would be more interesting....
wonder when I will be wiping with USDs instead of Charmin? I like Charmin.
You'll know when you start getting 2-ply, quilted, lotion-infused FRN's out of the ATM.
Don't flush it! It has cotton in it.
http://freakonomics.com/2008/12/18/freak-shots-when-money-goes-down-the-...