This Is The Biggest Problem Facing The World Today: 9 Countries Have Debt-To-GDP Over 300%

Tyler Durden's picture


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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Mon, 02/23/2015 - 12:23 | 5818481 Smegley Wanxalot
Smegley Wanxalot's picture

Fuck yeah.  USA is ahead of China!

Mon, 02/23/2015 - 12:24 | 5818483 Publicus
Publicus's picture

Time to print money to cancel the debt.

Mon, 02/23/2015 - 12:26 | 5818488 Smegley Wanxalot
Smegley Wanxalot's picture

Wee Tu Hai!  Bang Ding Au!

Mon, 02/23/2015 - 12:26 | 5818490 Latina Lover
Latina Lover's picture

Just print MOAR money and keep the party going!

Mon, 02/23/2015 - 12:29 | 5818508 Liberal
Liberal's picture

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.

Mon, 02/23/2015 - 12:35 | 5818530 wallstreetapost...
wallstreetaposteriori's picture

YUP, here come the rate hikes...... pff.

Mon, 02/23/2015 - 12:45 | 5818565 ParkAveFlasher
ParkAveFlasher's picture

This just shows why stocks are undervalued.  /s

Mon, 02/23/2015 - 12:55 | 5818606 waterwitch
waterwitch's picture

Good to see that the PIIGS are still PIIGS!

Mon, 02/23/2015 - 13:18 | 5818685 BaBaBouy
BaBaBouy's picture

400% Debt/Gdp...

WHY is Japan Still Considered Solvent With A Viable Banking System ??????????????

Mon, 02/23/2015 - 13:30 | 5818717 Bunghole
Bunghole's picture

Those pesky Ruskies with a 65% debt to GDP ratio are friggin' commies.

How dare they.

Mon, 02/23/2015 - 13:43 | 5818770 BaBaBouy
BaBaBouy's picture

Japan ... 400% Debt/Gdp... And Not To Mention The 900% Air/Cesium Isotope Ratio

Mon, 02/23/2015 - 13:50 | 5818799 Newsboy
Newsboy's picture

That BRICS banking system growing up in parallel might be really useful soon, huh?

Mon, 02/23/2015 - 14:24 | 5818978 Dizzy Malscience
Dizzy Malscience's picture

Yeah, Russia does not even make the list.

They must be punished.


Mon, 02/23/2015 - 14:31 | 5819007 SoilMyselfRotten
SoilMyselfRotten's picture

Someone must liberate their gold, they are obviously not good stewards of the NWO

Mon, 02/23/2015 - 14:58 | 5819120 Stuck on Zero
Stuck on Zero's picture

Debt to GDP is not the biggest problem we are facing.  The biggest problems is corrupt fools in government.  Debt is but a symptom.

Mon, 02/23/2015 - 15:40 | 5819353 Liberal
Liberal's picture

You're just being racist.

I strongly believe we should institute a global tax system so that people can live their lives without working. 

Mon, 02/23/2015 - 16:29 | 5819562 bwh1214
bwh1214's picture

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.

Mon, 02/23/2015 - 16:40 | 5819598 edotabin
edotabin's picture

Maybe someone can organize the Debt Olympics?

Maybe this way people can be fooled into going for gold while marching towards disaster.

Mon, 02/23/2015 - 17:09 | 5819706 johngaltfla
johngaltfla's picture

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% +?

Mon, 02/23/2015 - 17:20 | 5819772 BlueShirt
BlueShirt's picture

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%?????



Mon, 02/23/2015 - 18:39 | 5820077 Never One Roach
Never One Roach's picture
States where the middle class is shrinking fastest


"We can grow our way out."

... maybe not.

Mon, 02/23/2015 - 19:47 | 5820314 plane jain
plane jain's picture

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. 


Tue, 02/24/2015 - 00:02 | 5821162 Stuck on Zero
Stuck on Zero's picture

Sales tax in California is around 9% in most counties.

Tue, 02/24/2015 - 08:38 | 5821832 Chauncey Gardener
Chauncey Gardener's picture

We've always borrowed our way out of debt.

Tue, 02/24/2015 - 02:59 | 5821465 Kiwi Pete
Kiwi Pete's picture

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.

Mon, 02/23/2015 - 19:09 | 5820206 edotabin
edotabin's picture

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 see we have the first participant going for Gold!  :-)

Mon, 02/23/2015 - 20:46 | 5820510 Never One Roach
Never One Roach's picture

"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."

Mon, 02/23/2015 - 15:26 | 5819274 PartysOver
PartysOver's picture

Russia,  I had to go thru the list twice to make sure.   Damn, managable debt and still buying gold.


Mon, 02/23/2015 - 20:05 | 5820383 11b40
11b40's picture

Like Iran and Syria, another pair not making the list.

Mon, 02/23/2015 - 14:22 | 5818979 Dizzy Malscience
Dizzy Malscience's picture



Mon, 02/23/2015 - 13:32 | 5818721 Save_America1st
Save_America1st's picture

This chart states Russia's debt to GDP is only 13.41%


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.

Mon, 02/23/2015 - 17:50 | 5819897 Icelandicsaga.....
Icelandicsaga...............................................'s picture

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.

Mon, 02/23/2015 - 18:02 | 5819938 Snoopy the Economist
Snoopy the Economist's picture

Sorry but China only holds $1.2T or less of treasuries. Being 40% off doesn't get a pass.

Mon, 02/23/2015 - 21:21 | 5820630 ptolemy_newit
ptolemy_newit's picture


Mooky's, flatch and Stabdard & Poor are useless, does anyone really accpet thes private companies as unbiased mark to market agencies.


and now the cartoon section

CNBC: Obama Plan to Monetize the Debt/Stimulus = Ponzi Scheme

Mon, 02/23/2015 - 15:03 | 5819143 daveO
daveO's picture

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?'.

Mon, 02/23/2015 - 17:05 | 5819686 Bush Baby
Bush Baby's picture

On the count of three , everybody moves the decimal two positions to the left...

Mon, 02/23/2015 - 17:30 | 5819814 kiwimail
kiwimail's picture

True, and I always laugh when I hear the Yen referred to as a "safe haven" currency!!!

Mon, 02/23/2015 - 19:57 | 5820348 TheRideNeverEnds
TheRideNeverEnds's picture

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%"

Mon, 02/23/2015 - 12:56 | 5818612 NotApplicable
NotApplicable's picture

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).

Mon, 02/23/2015 - 13:08 | 5818650 Antifaschistische
Antifaschistische's picture

tick tick tick tick tick tick tick tick tick tick tick tick tick tick tick tick tick tick tick tick tick tick tick tick

Mon, 02/23/2015 - 18:06 | 5819949 Never One Roach
Never One Roach's picture

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.

Mon, 02/23/2015 - 12:46 | 5818570 mvsjcl
mvsjcl's picture

Iran? South Korea? Cuba? Even Russia? Nowhere to be seen on this list.

Mon, 02/23/2015 - 13:24 | 5818703 palmereldritch
palmereldritch's picture

South Korea is there but your point on Iran and Russia is well taken.

Mon, 02/23/2015 - 14:10 | 5818915 mvsjcl
mvsjcl's picture

Sorry, I meant those meddling Norks.

Mon, 02/23/2015 - 18:27 | 5820029 Aloysius Snuffl...
Aloysius Snuffleupagus's picture

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'.

Mon, 02/23/2015 - 13:29 | 5818712 HowdyDoody
HowdyDoody's picture

That is perfect proof of how bad the Russian and Iranian economies are. Sanctions FTW!

Mon, 02/23/2015 - 15:06 | 5819166 daveO
daveO's picture

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!

Mon, 02/23/2015 - 16:42 | 5819604 FIAT CON
FIAT CON's picture

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!


Mon, 02/23/2015 - 12:41 | 5818548 pods
pods's picture

I would say the biggest problem is fractional reserve banking.  Maybe my view is a bit too macro?


Mon, 02/23/2015 - 12:51 | 5818590 Mountainview
Mountainview's picture

And we still accept to be paid in these little colored papers.

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