Global Debt Hits 325% Of World GDP, Rises To Record $217 Trillion

Tyler Durden's picture

While we eagerly await the next installment of the McKinsey study on global releveraging, we noticed that in the latest report from the Institute for International Finance released on Wednesday, total debt as of Q3 2016 once again rose sharply, increasing by $11 trillion in the first 9 months of the year, hitting a new all time high of $217 trillion. As a result, late in 2016, global debt levels are now roughly 325% of the world's gross domestic product.

In terms of composition, emerging market debt rose substantially, as government bond and syndicated loan issuance in 2016 grew to almost three times its 2015 level. And, as has traditionally been the case, China accounted for the lion's share of the new debt, providing $710 million of the total $855 billion in new issuance during the year, the IIF reported.

Joining other prominent warnings, the IIF warned that higher borrowing costs in the wake of the U.S. presidential election and other stresses, including "an environment of subdued growth and still-weak corporate profitability, a stronger (U.S. dollar), rising sovereign bond yields, higher hedging costs, and deterioration in corporate creditworthiness" presented challenges for borrowers.

Additionally, "a shift toward more protectionist policies could also weigh on global financial flows, adding to these vulnerabilities," the IIF warned.

"Moreover, given the importance of the City of London in debt issuance and derivatives (particularly for European and EM firms), ongoing uncertainties surrounding the timing and nature of the Brexit process could pose additional risks including a higher cost of borrowing and higher hedging costs."

For now, however, record debt despite rising interest rates, remain staunchly bullish and the equity market's only concern is just when will the Dow Jones finally crack 20,000.

Sadly, since we don't have access to the underlying data in the IIF report, we leave readers with a snapshot of just the global bond market courtesy of the latest JPM quarterly guide to markets. It provides a concise snapshot of the indebted state of the world.

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dude duderson's picture

Perfect indicator for a new equity bull market. I see 30-45% upside first half or '17

froze25's picture

With this loony Tunes market, why the hell not.

The Merovingian's picture

It's clearly time to trot out the $220T coin idea again.

s/

Jim Sampson's picture

Busch League.  Let's stop fucking around and get this thing up to a Quadrillion!

Raffie's picture

I will not panic till it hits %326.

So right now everything is fine.

ejmoosa's picture

You cannot pay off the debt with GDP.   You can only pay it out of profits.  So what % of profits is the debt?

Captain Chlamydia's picture

Does it matter? 

Q:You cannot pay off the debt with GDP.   You can only pay it out of profits.  So what % of profits is the debt?

 

A; It is BY DEFENITION NOT RE-PAYABLE. IT is FIAT Money. 

JRobby's picture

In the case of GOVT DEBT taxes on profits..................

Wulfkind's picture

If you include derivatives then it's somewhere between 750 trillion to 1 quadrillion.  That's quadrillion....with a Q.

InsaneBane's picture

According to George Clooney in the Perfect Storm the next wave is coming..

#SheitStorm

cossack55's picture

If you are not 500% you ain't shit

Darktarra's picture

Trump can only 'soften' the collapse to come! 

FreeShitter's picture

He will just tweet the collapse from his bunker.

InsaneBane's picture

It's packed and stacked..

Rainman's picture

LIBOR going over 1% should be good news for the $150T in derivatives tied to it.

http://www.reuters.com/article/uk-usa-moneymarkets-idUSKBN14O25Z

DavidC's picture

Too right. Meanwhile Russia has 17.7% debt to GDP.

DavidC

asierguti's picture

More debt will fix the problem. Not sure? Ask Krugman!!

SDShack's picture

When looking at that chart, all I can think of is "When was Glass-Steagall repealed?"

stecha's picture

Good ole USandA leading the world in intuitive debt management. Look at me im worflest..

Seasmoke's picture

That's a fucking tsunami of debt !!!!.......I guess the good news is that it's so big it won't even hurt when it crashes down. 

stecha's picture

DING DING DING, when it crashes we will have no more debt, no more anything. lmfao

chubbar's picture

Is anyone else noticing that we are seeing more and more "truth" coming out about our true financial situation both here and around the world? I don't think it is coincidence. This is the start of the ramp up for collapse, bank on it. 2017 is the year of the reset, whatever that entails.

besnook's picture

no big deal. money is just math anymore.

TeethVillage88s's picture

$64 Trillion Total US Debt and what? $15 Trillion GDP $16 Trillion GDP?

US Debt to GDP = $64 T / $16 T = 400%

K_BX's picture

you know you're fucked when you start rounding trillions lol! 27k t of Gold btw...

Lady Jessica's picture

What an enormous claim on all our future economic activity.  Funny, it's almost as if the debt-peddlers want to engineer low growth in perpetuity.

brooklinite8's picture

Seriously Jessica. They can print it. My nephews 7 and 5 are already playing games involved very high tech guns. Do you think these kids will bow to this system. No way. 

Womb Service's picture

Those games are how they indoctrinate your kids into the psychopath MIC perpetual warfare system. Take them out and teach them to shoot properly, with real guns, and none of the nonsense glorification of war.

Citxmech's picture

And while you're at it teach then how to drill a well, build a fence, grow a garden, maintain a tractor, and raise animals.

logicalman's picture

Take 'em out and learn to shoot properly - with a bow!

Then teach them how to make one - and the arrows that go with it.

Mass_hysteria's picture

Debt/Gdp ratio: 325%

 

There is not enough taxes to pay off the debt.

 

This is a well oiled plan by the illuminati, they are going to crash the shit and bring in a new world order, where the robots are in charge, and the police is roaming the streets in military gear, and there's cameras everywhere. your freedoms are taken away.

 

get the fuck outta the cities, things are gonna get ugly.

TeethVillage88s's picture

$64.3 Trillion Total US Current Debt / $217 Trillion Total World Debt = 30%.

30% folks!!!

Total US Debt http://research.stlouisfed.org/fred2/series/TCMDO

Doppelganger71's picture

Anyone who thinks this is going to end well needs to have a piss test.....................................

logicalman's picture

Most have no clue that this will end.

Going to be a hell of a shock when it does.

SeuMadruga's picture

It will end inside a well !

A bottomless one.

CHoward's picture

I knew it - I knew I should have run up every fucking credit card I ever had - live in the lap of luxury and not paid back a fucking penny.  Fuck this shit!

Osmium's picture

I think you still have time.  If you need a lesson on how to create debt, my wife can help.

War Machine's picture

i don't often (ever, really) see this discussed but keeping the financial ponzi of fiat/frac reserve debt-money has to be a MAJOR reason for the drive to flood the west with immigrants:

Debt farming.

The bankers need more bodies to keep this game going.

End the Fed, End all private central banking, fiat might be okay if issued by gov w/o debt attached at issuance, and strict limits on reserves.

Trump is very likely not to support audit the Fed.

I hope I'm wrong, but given his evonomic appointments...

Goldman and the Fed are a wealth transfer system, away from the real economy, to those with the power to create debt-money from nothing.

This isn't complicated.

But economists work very hard to make it seem so.

debtor of last resort's picture

Those 'immigrants' should take out a loan to pay for their deportation.

In Ze No's picture

They also keep the housing Ponzi afloat.

Goldbugger's picture

When this thing goes Tippsy Kabooom. I am more concerned about our kids and their kids.

 

Hail Spode's picture

If you had to wait five years to cash out and spend it.....

> I'd rather have $10 million in euro debt

> I'd rather have $1 million in gold and silver

tarabel's picture

 

 

I'd take the 10 million in a heartbeat.

 

Of course in the next heartbeat, I'd sell it to one of those "We buy Settlements" guys and then use the proceeds to buy a million in gold and silver to enjoy today-- plus a lot more in cash to go play with while the empire still holds sway. 

Citxmech's picture

The question presumed a 5-year waiting period. . . 

Yen Cross's picture

   Just one little forgotten stipulation. lol

JailBanksters's picture

It's just too easy to create debt if your a Bank, it's just an entry on a Ledger.

tarabel's picture

 

 

Look. this isn't a problem. Everybody in the world (including babies) works for free for 3 years and lives on air.

The future will be bright indeed. 

deerhunter's picture

I have 8-10 charge card offers a week in my mail box . No debt . Haven't checked my credit rating since 1998. Don't care . Pb. Ag. Au and plenty of fresh H2O here. Venison in the freezer and cutting up 3 Holstein steers next month with a 1/4 coming home with me for the freezer. Living the dream. It is 2008 all over and then some folks. Can you say Jubilee? Look it up. It's coming ! Keep one eye on your bobber.

sinbad2's picture

So what would happen if everybody defaulted, a few rich people would go ballistic, but for the average Joe things would be better.

It's only paper and numbers on a screen, there isn't $217T in the whole world.

Do what the French did, kill the rich folks and extinguish the debt. The surviving Shylocks will complain forever, but start again, they always do.