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This Is What A World Addicted To Debt Looks Like
As we spelled out explicitly and succinctly late last month, there is one overriding and extremely simple reason why seemingly every central bank in the developed world is bound and determined to move heaven and earth in the pursuit of generating a “healthy” level of inflation. With 9 countries sitting on debt-to-GDP ratios of 300%+, it’s either inflate the debt away or be crushed under the sheer weight of it.
Below is a map showing just where all of the red ink is concentrated and as The Telegraph notes, “not one developed economy (and only five emerging markets) has managed to reduce debt-to-GDP ratios which include both household and government debt. When taken together, this total debt mountain has grown by $57 trillion since 2007, far outpacing global growth.”
Click image for interactive version
More from The Telegraph:
This explosion in public debt levels has come about as countries have been unable to "inflate away" their liabilities. Instead, a global deflationary spiral has amplified the amount of countries owe and the interest they pay to service these debts.
By and large, the story of the world economy has been one in which emerging markets have loaded on debt, while the developed world has struggled to reduce the burdens it amassed in the wake of banking bail-outs and years of stagnant economic growth.
... and here's what Europe would look like if country size approximated debt loads...
...and as a refresher, here is the country-by-country breakdown...
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USA keeps its unfunded Medicare and Social Security liabilities off the books or its debt to GDP would be like 900%. If Kotlikoff is to believed, US debt to GDP is 1400%
Sustainable.
No wonder the Nazis all went to Paraguay.
For anyone who thinks debt doesn't matter, Krugman I'm talking to you, READ THIS!!!
http://www.debtcrash.report/entry/debt-taken-on-by-fools
Where's Iceland on the list? I'd love to see how they're faring after dealing honestly with their bankster infestation.
Notice that you can't really invest in debt free nations if you live in a debt burdened nation....
Uhm..That's the wrong map. It shows terrist countries in 50 shades of gray...
off topic
The most Advanced Nations are the most in Debt.
Cat is out of the bag again, how will the ignore this this time?
Bitcoin = freedom
Ha! That story doesn't even include the FSA who collect from the redistribution of the earnings of people who owe more debt than they can pay to those who loaned the money.
Socialism killed the golden goose.
Socialism is a bribe to get the mob to oppose those that can't be bought off directly.
Paraguay, a very boring place!
Are you calling the BUSH family Natzi's ?? Map very bad by the way. Milestones
No. They are followers of Mother Theresa. Duh! They arereally COWARDS of the HIGHEST DEGREE---and not much in the way of businessmen, either.
Looks like Greenland has the biggest problem out there...
They need a Rothschild Central Bank.
The Rothschild could probably pay most of that debt off. Mind trip.
Which they counterfeit THEMSELVES no less...
#WINNING #WINNING
Oh WAIT! I forgot something... Then they need to form a government & intelligence agency which starts a "TWO FRONT" war against Iceland & Labrador to run up the debt...
IF the Fed can simply order printed money, how much have they printed for themselves?
Answer: ALL OF IT!
Every unit printed:
- whether it be 'on the books' and ends up as casino chips for bankers [losing side, the taxpayer pays for by way of increasing debt whereby the INTEREST PAYMENTS are the skim], &/or PRICE MANIPULATION
- or OFF THE BOOKS... [Think 'slush funds' during power voids of government overthrows in the infrastructure rebuilding phase].
Seems that the Vikings had a sick/sarcastic sense of humor, when they named Greenland and Iceland.
Sorry they could not of sailed farther down the potomac and call that place; assholeville.
It was green (sort of) ... http://archive.archaeology.org/online/features/greenland/
pre-global Warming...it was warmer in Greenland and it was Green. But now it is cold because of Global Warming.... If you have any questions please call Al Gore he can explain why Warming is Cooling or it Cooling is Warming.
he should know... After all ~ He INVENTED thermodynamicregulation [from his SUV caravan on the tarmac, no less]...
TALENTED!
Yeah, here's the source:
http://www.cnsnews.com/sites/default/files/documents/PDF.Kotlikoff---Tes...
The U.S. has a $210 trillion “fiscal gap” and “may well be in worse fiscal shape than any developed country, including Greece... but as long as you can counterfeit, rig and 'adjust' for AAA it's all fine!
@justobserving.
Quite correct, however, with the stroke of a pen an actual statesman...a real leader...could legislate that bloat away. Because of that, it's not counted.
When will someone do that?
The USSA pretty much keeps the 'TRUTH' off of thebooks. Death to the Pinko Fascist Commies!
Whaddya mean "Addicted to Debt"?
The only "addiction" we have in our household is (a) a Std. Mortgage (3.5% APR), and (b) 2 yrs of car payments left (1.9% APR, on a new Japanese car we bought in 2012 and now has 30k miles)
We're not getting jack shit in subsidies or freebies from any level of government, and pay 20% effective income tax. So where's the "Addiction"? Besides the one I'm supporting in DC.
what would the numbers be if anybody was telling the truth?
Audit the Fed sometime and you just may find out...
http://www.federalreserve.gov/monetarypolicy/bst_liquidityswaps.htm
(See the protocol for off balance sheet one-way CB currency "swaps")
" Numbers, truth"? what planet are you living on? relevant to your name...There is no sannity clause..?
My thesis is that things are not going to make more sense from here.
Another perspective on debt:
http://armstrongeconomics.com/2015/03/08/why-japan-is-not-greece-or-eu-for-that-matter/
debt is money, no?
Only for slaves.
notice iraq has a zero balance sheet
on this interactive representation.
hmmm.
white out.
i rethink the debt is money meme is not
for slaves but for the modern masters of
the slaves. it is all f'd here on planet
urth
To the bankers it certainly is.
But don't worry because Friedman, Greenspan, Bernanke, Rubin and Summers all guarantee us they will self-regulate their greed so things will never get out of hand...
Randy Newman - Guilty
https://www.youtube.com/watch?v=PxYTILdWRaU
.
"...it takes a whole lot of medicine for me
to pretend that i'm somebody else." r.n.
rollin' w/ randy today - italy looks positively randy in one of the graphics above :-)
regrettably my net connection today is boogered so bad it won't quite stream video from utube
randy and interference happens,
we try and move to it or past it as we can.
seems everything leads back to the point
of our selves as seekers observing the
cosmos as a great reflection, perhaps?
I say execute each one of them on Super Bowl Sunday Half-Time Show!
You might gross more on pay-per-view...
Why wait for once a year? It's time for...
Monday Night Rehabilitation !!
...my money is on Beef Supreme.
Too bad Friedman, Greenspan, Bernanke, Rubin and Summers dont just personally guarantee the debt!
Randy Newman - Sigmund Freud's Impersonation Of Albert Einstein In America
https://www.youtube.com/watch?v=08B3KgelWss
True story for ZH readers entertainment and hopelfully instructive on a micro level of the level of insanity that currently resides in debt markets on a micro scale..
First story: Im broke and need a loan couple years ago. Kept getting mailer from Mariner finance ( think they are bankrupt now). It was only for like $500. Had to take the wife as co-signer (I know right?) 28% interest, but needed the money. Few months go by and stop making the payments. Mariner gal calls me and says, "Hey, uh youre behind on your payments, wanna come in for a larger loan"?I say no, and they garnish the wifes wages.
Second Story: Still broke 2 yrs. later (such an entrepennuer I am) A finance company sends a letter to my lovely bride, "want a loan up to 2500?"...READY FOR THIS?....110% interest...hahahahhahahaha
Peace and blessings...
The "Payday" / Loan Shark business is booming. A business model that always thrives in times of hardship (so where's the "Recovery", then??)
http://www.theguardian.com/money/2014/oct/29/payday-loan-brokers-bank-accounts-poor-customers
https://www.thesaturdaypaper.com.au/news/politics/2014/07/26/life-after-debt-with-payday-lending/1406296800#.VQDAaE39l9B (300% APR rates "common")
https://www.google.com.au/search?sourceid=navclient&ie=UTF-8&rlz=1T4WQIB_enAU528AU528&q=boom+in+payday+loans - count the number of "Sponsored Content" advertisers for this type of "product" . . . . .
Cankles in Italy!
Wow, that's a lot of debt. Thank the gods it's a jubilee year, otherwise they might not be able to inflate all that debt away.
Compared to "The Rest" Russia is, well, awesome. Even "if" their debt / GDP ratio "balloons" per this article, make of it what you will, especially in view of the source data), they are still in far, far better shape than anything in "The West" . . . .
http://www.valuewalk.com/2015/02/russian-debt-to-gdp/
Russia isn't up to its eye balls in debt because its pissed off everyone that would print it some money.
The USA has pissed off everyone and they still lend us money . . .there must be something more to it, eh?
Russians do not spend money they do not have normally
Except in 1917 and again in 1991...
edit
Looks to me like the developed nations are about to experience some forced deleveraging, or as others might refer a debt restructuring. I'm assuming this will be the point when the masses will become aware of what has transpired right beneath their feet. Then all of these recent national security upgrades are going to come in handy...
Greece looks positively healthy.
Debt will continue to increase rapidly until it doesn't. When it doesn't, the world changes quickly.
.
yeah. A shit show comes to mind.
Wasn't there some famous scientist that postulated, "Doing the same thing over and over expecting a different result is the hallmark of insanity"? I know I've heard something like that before. What makes these CB's think that continually doing what they have been will result in something different?
D is for...
The way things are trending, within the next 50 years, private property in the US will become a thing of the past. All-tax-everything.
So according to the map Libya is doing just great!
Now thats funny....give that man an upvote...
Oh so thats why the USA and Europe are driving us to war.
Greenland has been wanting to go to war with the U.S. and Europe for a while.
Let's dance, glacier boys.
We owe it to ourselves.
Debt is the way to enslave the world. They also should make a chart for all accumulated private debt. That is even worse.
debt is a way to own all the assets. issue debt, secure the assets, get paid to wait for default, then claim the assets and the 'price' of said assets is immaterial b/c one party owns them and the other does not.
This is a serious question I would like answered if someone knows: who owns all this debt b/c I believe it is a zero sum game? We know the Fed owns some, citizens do, corporations do, China, etc. I get confused b/c I don't know the other side well... thanks
Randy Newman - Lonely at the Top
https://www.youtube.com/watch?v=qlmGJQq3AlM
.
https://www.youtube.com/watch?v=rQ_4ss9v7Z4
.
Randy Newman - It's money that I love
First Half: Author and investment advisor, Catherine Austin Fitts, will share her unique perspective on how to navigate the opportunities and risks in the global financial system and political economy. She'll offer tips and information for the proper handling and protection of personal assets.
Bahahahahahahahahaw!!
Once again, I call bullshit!
Singapore has NO government debt.
Once again for the novices....
Singapore has NO goverment debt. These morons are bliindling cutting and pasting off IMF tables which assume the accounting is done the same as the USA....which it isn't.
Squid
The data given here is wrong check the correct data on wikipedia
http://en.wikipedia.org/wiki/List_of_countries_by_public_debt
(For India Debt-GDP given is 120% but is actually is 65%)
I know...it's wrong all over the place between the map and the chart. Brazil is about half what the chart says for instance...that map is more accurate.
Funny how these stories keep cropping up, all this shows is how connected the world is nowadays with countries buying each others debt etc. The UK holds a significant amount of US debt, China debt and vica versa and so on. If people really don't want any debt then ask our government not to take any debt anymore and focus on paying it all off that will put an end to the welfare state, the military and everything else that we pay for in debt. It's laughable really, debt is how we have the society we live in, without it we'd be like a couple saving to pay on bills without UK loans online till payday, we'd be years and years behind.