$21,714 For Every Man, Woman And Child In The World - This Global Debt Bomb Is Ready To Explode

Tyler Durden's picture

Authored by Michael Snyder via The Economic Collapse blog,

According to the International Monetary Fund, global debt has grown to a staggering grand total of 152 trillion dollars.  Other estimates put that figure closer to 200 trillion dollars, but for the purposes of this article let’s use the more conservative number.  If you take 152 trillion dollars and divide it by the seven billion people living on the planet, you get $21,714, which would be the share of that debt for every man, woman and child in the world if it was divided up equally.

So if you have a family of four, your family’s share of the global debt load would be $86,856.

Very few families could write a check for that amount today, and we also must remember that we live in some of the wealthiest areas on the globe.  Considering the fact that more than 3 billion people around the world live on two dollars a day or less, the truth is that about half the planet would not be capable of contributing toward the repayment of our 152 trillion dollar debt at all.  So they should probably be excluded from these calculations entirely, and that would mean that your family’s share of the debt would ultimately be far, far higher.

Of course global debt repayment will never actually be apportioned by family.  The reason why I am sharing this example is to show you that it is literally impossible for all of this debt to ever be repaid.

We are living during the greatest debt bubble in the history of the world, and our financial engineers have got to keep figuring out ways to keep it growing much faster than global GDP because if it ever stops growing it will burst and destroy the entire global financial system.

Bill Gross, one of the most highly respected financial minds on the entire planet, recently observed that “our highly levered financial system is like a truckload of nitro glycerin on a bumpy road”.

And he is precisely correct.  Everything might seem fine for a while, but one day we are going to hit the wrong bump at the wrong time and the whole thing is going to go KA-BOOM.

The financial crisis of 2008 represented an opportunity to learn from our mistakes, but instead we just papered over our errors and cranked up the global debt creation machine to levels never seen before.  Here is more from Bill Gross

My lesson continued but the crux of it was that in 2017, the global economy has created more credit relative to GDP than that at the beginning of 2008’s disaster. In the U.S., credit of $65 trillion is roughly 350% of annual GDP and the ratio is rising. In China, the ratio has more than doubled in the past decade to nearly 300%. Since 2007, China has added $24 trillion worth of debt to its collective balance sheet. Over the same period, the U.S. and Europe only added $12 trillion each. Capitalism, with its adopted fractional reserve banking system, depends on credit expansion and the printing of additional reserves by central banks, which in turn are re-lent by private banks to create pizza stores, cell phones and a myriad of other products and business enterprises. But the credit creation has limits and the cost of credit (interest rates) must be carefully monitored so that borrowers (think subprime) can pay back the monthly servicing costs. If rates are too high (and credit as a % of GDP too high as well), then potential Lehman black swans can occur. On the other hand, if rates are too low (and credit as a % of GDP declines), then the system breaks down, as savers, pension funds and insurance companies become unable to earn a rate of return high enough to match and service their liabilities.

There is always a price to be paid for going into debt.  It mystifies me that so many Americans seem to not understand this very basic principle.

On an individual level, you could live like a Trump (at least for a while) by getting a whole bunch of credit cards and maxing all of them out.

But eventually a day of reckoning would come.

The same thing happens on a national level.  In recent years we have seen examples in Greece, Cyprus, Zimbabwe, Venezuela and various other European nations.

Here in the United States, more than 9 trillion dollars was added to the national debt during the Obama years.  If we had not taken more than 9 trillion dollars of consumption and brought it into the present, we would most assuredly be in the midst of an epic economic depression right now.

Instead of taking our pain in the short-term, we have sold future generations of Americans as debt slaves, and if they get the chance someday they will look back and curse us for what we have done to them.

Many believe that Donald Trump can make short-term economic conditions even better than Obama did, but how in the world is he going to do that?

Is he going to borrow another 9 trillion dollars?

A big test is coming up.  A while back, Barack Obama and the Republican Congress colluded to suspend the debt ceiling until March 15th, 2017, and this week we are going to hit that deadline.

The U.S. Treasury will be able to implement “emergency measures” for a while, but if the debt ceiling is not raised the U.S. government will not be able to borrow more money and will run out of cash very quickly.  The following comes from David Stockman

The Treasury will likely be out of cash shortly after Memorial Day. That is, the White House will be in the mother of all debt ceiling battles before the Donald and his team even see it coming.

 

With just $66 billion on hand it is now going to run out of cash before even the bloody battle over Obamacare Lite now underway in the House has been completed. That means that there will not be even a glimmer of hope for the vaunted Trump tax cut stimulus and economic rebound on the horizon.

Trump is going to find it quite challenging to find the votes to raise the debt ceiling.  After everything that has happened, very few Democrats are willing to help Trump with anything, and many Republicans are absolutely against raising the debt ceiling without major spending cut concessions.

So we shall see what happens.

If the debt ceiling is not raised, it will almost certainly mean that a major political crisis and a severe economic downturn are imminent.

But if the debt ceiling is raised, it will mean that Donald Trump and the Republicans in Congress are willingly complicit in the destruction of this country’s long-term economic future.

When you go into debt there are consequences.

And when the greatest debt bubble in human history finally bursts, the consequences will be exceedingly severe.

The best that our leaders can do for now is to keep the bubble alive for as long as possible, because what comes after the bubble is gone will be absolutely unthinkable.

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VinceFostersGhost's picture

 

 

$21,714 For Every Man, Woman And Child In The World

 

Yeah.....I haven't seen a damn dime of that money.

syzygysus's picture

No, that's what you pay, not what you get.  Brilliant if you are the one getting paid... not so much for the other 99.9999% of us.

xythras's picture
xythras (not verified) syzygysus Mar 13, 2017 8:27 AM

Meanwhile Iceland brings back some of financial FREEDOM:

Iceland Will End Capital Controls More than 8 Years After Banking Crash

http://dailywesterner.com/news/2017-03-13/iceland-will-end-capital-contr...

 

 

Hear that globalists? Fuck your war on cash !

prefan4200's picture

I gave it a quick read, so I may have missed it, but I don't think the writer even mentioned derivatives.  So explode that $21K per person to something much larger and deadlier.... so when does the fun start????

Belrev's picture

How 1 woman disrupted ACLU meeting and told them to use their brains. They called cops on her.

https://www.youtube.com/watch?v=oR2T39HD4XA

MillionDollarBonus_'s picture

If this “debt bomb” explodes it will be the fault of Trump for disrupting the world order and harming the global economy with his anti-trade, anti-immigration, anti-globalization policies. I hope you’re happy, conservatives – you’ve just destroyed the entire planet!

How to Interview Conservatives

Looney's picture

 

Bill Gross shamelessly borrowed the “truckload of nitro glycerin” from the 1977 movie Sorcerer.

Looney   ;-)

Erek's picture

I've been hearing this  "debt bomb" shit for how many years? Won't happen until it's $100,000 for every man woman and child, and even then I doubt it as long as the digital printing press continues to operate and the swindlers continue to manipulate.

Arnold's picture

4X is not exponential growth.
1.5 years only.

Kotzbomber747's picture

Boy crying wolf again...

If I got 1$/€ for every time I heard that "collapse is just around the corner" I'd be rich.

What we have here is the next idiot who likes to throw darts at a dartboard and guess the timing of it all. Maybe he's right and he gets bragging rights claiming "....that he knew it all along" but most probably this will just fade again into the shadows of the internet.

Remember folks: any day now... /sarc

deer_flasher's picture

Agree, same fear mongering the politics use to manipulate people, that end of the world shit is getting old and boring

Itinerant's picture

That's because we are not borrowing from the future. That is impossible. We are not borrowing eggs from the future, no time machines will be needed to send eggs back in time to pay them off. Every generation is consuming current production. Government debts are savings accounts by the public who buy bonds. The government does not even need to issue bonds to finance itself. And all the financial debt is the counterpart to the assets they hold on the the other side of the balance. You cannot just add all savings and assets up together.

People should stop talking this way, because it obscures what the real problem is: That is the disposition and distribution of assets, not how many kilometers of dollar bills of debt there are stretching to Jupiter. 

Sanity Bear's picture

Kill the slavers, free the slaves, melt the chains and cast rifles.

Problem solved.

Mr 9x19's picture

fuck you banksters, i ain't got not debt, put your average 21k WC paper on  someone else's back.

espirit's picture

I am going to self-identify as an Islama-beast living in a no-go sanctuary enclave.

Changing my name to Mauct-med Moohammed, and don't adhere to juice usuary.

 

Molon Labia, Motherfuckin' Bitchez.

Socratic Dog's picture

You've got your share of the national debt.  About $100,000-$1,000,000, depending on what you consider to be "debt".

Steaming_Wookie_Doo's picture

Here's my question: who exactly do we owe this money to? If we're all in debt (and I count my fellow ZHers here), who has all this as an "asset"? 

I doubt it's the Saudis or Chinese. Social security? C'mon... whoever wants to claim these as their assets are the real enemies of mankind.

BennyBoy's picture

 

Debt creates money in this corrupt financial system.

More debt = More money.

No debt = No money.

Ask the FED.

Arnold's picture

I thought I saw it on little Mouse and the Fairy.
http://www.imdb.com/title/tt0633103/

Naw just kidding.
It was the War Wagon.
http://thegreatwesternmovies.com/2013/12/28/war-wagon/

Dancing Disraeli's picture

Sorceror 'borrowed' shamelessly from the earlier French film, 'The Wages of Fear.'

GadExp's picture

 

 

 

"What comes after the bubble bursts" is absolutely PREFERABLE!!!!

Snout the First's picture

Sorcerer is one of my all time favorite movies.

Karl Marxist's picture

So, what you're saying is to put up pretenses to block actual two way communication from happening, right? No wonder the left is despised for who and what they are -- perverts, racists, globalist scum, war nongers, hate mongers as your bullshit stategy proves and is easy to get around by people who can speak to issues, BTW. Dems and the Left have no issues still. Play your little games. You just gave us all your little tricks. Expect all that to be used against you useless leftists.

Logan 5's picture

 

<--- I prefer marxist snowflake libcons to take us into nuclear war with Russia and destroy the entire planet

<--- "I hope you’re happy, conservatives – you’ve just destroyed the entire planet!" (what that dude above said)

Lordflin's picture

MDB... I am never certain if you are a fucking moron... and I don't personally like to swear... a shill, albeit a very stupid one... or you intend satire.

As the majority of readership knows already, for every dollar that comes into existence a dollar five is required to pay it back. It is not possible to pay off debt. People don't go into debt, persae, they are born into debt. The world's economy is one giant debt engine intended to rob from producers and pay into the coffers of a so called elite... and I use the term elite as a pejorative... and whatever class of useful idiots are necessary at any given moment to maintain this class's control over the rest of us.

If you intend satire perhaps you should state it as such, as it becomes wearing to read such tripe, and to be honest I don't read many of your posts anymore. If you are serious then as the poet says, fuck off. You are an embarrassment either way.

Bobrsta's picture

I've come to the conclusion he's one of the great satirists of the day. But, no way to know for sure.

Ivan the Russian's picture

Have a look at his profile & publication: he sucks Deep State dick; a CIA loving cultural Marxist. Morally, if he hit the bottom, he wouldn't know it.

espirit's picture

MDB is a Tyler. I've been told(inferred) to lay off him/her, and a few others.

It's just contrary opinion to generate response,  keeps conspirational(new word) tomes minimal.

 

 

Oldrepublic's picture

1.2 quadrillion/ 7.4 billion is $162,000 per person in the world

Gold Pedant's picture

And what if all that were paid off? Oh WAIT, it can't be. Because there is always that pressure toward inflation because some money somewhere must be borrowed to pay off the present loans at interest. And if it were, the global fiat ponzi scheme monetary and banking system would completely implode.

 

Just imagine that kind of deflation.

 

It's like the earth circling around a black hole. Your entire city would be flattened to something about the size of a sheet of paper.

aqualech's picture

That's right - if some TBTF sells a bunch of derivatives that it can't cover, it's only right that the tax payer be required to step in and cover for them.

prefan4200's picture

Just to be clear, aqualech, I was not saying it was right that the taxpayer be required to step in and cover derivative losses, not at all - that's fucking robbery and it's fiscal insanity.  But that's what happened during the last financial crisis and I fully expect it to happen during the next one - the profits go to the 1%, the losses are socialized and handed to the masses.  So, yeah, I believe doing the calculation of debt/person with estimated derivatives' loss liabilities included in the potential debt is a reasonable assumption to make until proven otherwise.

BullyBearish's picture

Yes, we each owe that +$20K to people who printed it out of thin air...

HardAssets's picture

Yep its a money changers scam.

Time for debt Jubilee

Imprison the banksters

MFL5591's picture

Abolish the 1 religion control of the money and back the dollar with Gold.

JRobby's picture

At least Iceland JAILED some BANKERS!

(crickets chirping at the MSM)

UmbilicalMosqueSweeper's picture

They should have sacrificed them to the volcano gods.

JRobby's picture

That is kind of elaborate isn't it?

When you can just beat them to death with an aluminum baseball bat, hose the bat off, and go play softball.

Offthebeach's picture

Oooo, "capital controls. "

 

As if we don't slave under "controlled " capital.  You are ordered to have for your labor capital, licensing, permits, permission.  Your "income" is taxed.  Anything bought with after tax income is taxed.  Keep it a year it is taxed every year.  The money is inflated on vommand, deflated on command, supposedly value mandated by command.

 

PrivetHedge's picture

The ones who tricked us into this debt with their debt currency will ultimately have to be made to pay.

And then we'll want compensation.

VinceFostersGhost's picture

 

 

Was gonna say......owed to whom?

8774_44887's picture
8774_44887 (not verified) VinceFostersGhost Mar 13, 2017 8:33 AM

I'm making over $7k a month working part time. I kept hearing other people tell me how much money they can make online so I decided to look into it. Well, it was all true and has totally changed my life. This is what I do... http://bit.ly/2jdTzrM

VinceFostersGhost's picture

 

 

I make $100k a month selling Avon......now piss off!

GunnerySgtHartman's picture

Sounds like that MLM is working well for you!  ;-)