$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

 

 

Well......it's not for everyone.

Peterman333's picture

Of course it's not, only the guy at the top gettin' paid.

yogibear's picture

Time to increase the debt 4x as much.

RevIdahoSpud3's picture

That's really excellent this day and age. I used to use Avon butch wax in Jr. High. Don't have as much need for it now since that was almost 60 years ago. I may still have a football shaped soap on a rope from the same period. It was too cute to use then. Do you still carry those?

VinceFostersGhost's picture

 

 

Oh yeah......totally hook you up.

Sanity Bear's picture

I make $100k per speech thanks to all that blackmail material I saved up from the time I was in the White House.

Bollockinell's picture

Great, then you can pay off the national debt!
What a pillock!!!

Jubal Early's picture

"owed to whom?"

Why to the international jewish banking cartel.  They started and won 2 world wars, and that is why they get to create money out of nothing and lend it to stupid goys.

Karl Marxist's picture

Oh! You mean the Rothschilds? Go ahead. Say it. Rothschilds. Say it again. Rothschilds. Their veil is off. When you say "jewish bankers" you mean specifically the Rothschilds. They're the ones floating all this debt and they don't care what happens. They'll just start another war, blow everything up in some sadistic act of mass pedophilia and survive to do their shit all over again for generations to come.

Logan 5's picture
Logan 5 (not verified) Karl Marxist Mar 13, 2017 9:27 AM

Well sure, Rothschilds is at the top of the pyramid. But you need a lot of expanding layers underneath that.

 

Anyway, goy need not apply (unless you're a Rockefeller, JP Morgan, Bush, Clinton type who is really willing to sell your soul and do some highly criminal shit so they have blackmail leverage over you.).

Mustafa Kemal's picture

Yup, if the whole world is in debt, who is it in debt to? God?

East Indian's picture

owed to "ourselves"; so nothing to worry about.

 

 

/s

Arnold's picture

I'll take my fourty acres and a mule in Manhattan.
Thanks.

JRobby's picture

The populous will awaken when it explodes. Not before.

"The End Of The Debt Supercycle"  Way past the point of sustainable. WAY PAST!

Should be the most covered story ever since it is such a destructive, infrequent event. With good reason.

So keep on watching "The News" and CNBC, Bloomberg etc. and see how often it comes up.

 

Creepy Lurker's picture

Just my opinion mind you, but have always thought they're trying to keep the bubble inflated until Gen X is gone. Those born after that don't have enough spine to fight thier enslavement.

Giant Meteor's picture

I disagree. Historically it is usually the children of slaves whom start the revolt ...

I would imagine this is so, due to youthful exhuberance, combined with situations that become increasingly "intolerable." Many slaves of old could see no other way, than their enslavement. I mean fuck, one can get used to a tooth ache if one has it long enough.

Bottom line is, there is too much "comfort" presently in the debt and slavery model.

Critical mass has not yet been achieved ..

JRobby's picture

There are very smart people of all ages.

Kids see what their parents and grandparents have or did have at one point, and then see how difficult it would be to obtain the same things with todays wages.

Some will research why that is. Some already know.

general ambivalent's picture

Gen Xers? You mean the most medicated generation in history have a spine? I know that 80s and 90s music was depressing but you guys opted for LSD without the visions.

But I don't blame you all, your parents fed you blue pills with your cheerios, so it only makes sense that you're an over-medicated version of them.

JRobby's picture

What were you? A test tube baby or something?

UmbilicalMosqueSweeper's picture

An obamaphone, an EBT card, some crack, and an ounce of pot will do for most of the Free Shit Army.

Arrow4Truth's picture

If you would consent to pay it... they won. An equivalent might be that you consent to be sent to prison for their crime.

dark fiber's picture

Who do we owe all this to?  It seems to me that this is just a fractional reserve banking scam.

Arrow4Truth's picture

We don't owe shit. "They" created the "crisis" to steal energy from the flock. "They" "papered over" the problem in order to transfer the debt to "us." "We" don't owe anything. "Our" problem is in fact not ours, it's theirs. Did you consent to it?

Paul Kersey's picture

The whole premise of world per capita debt per family is crazy.

A TBTF bank borrows $50 billion from the Fed @ 0%, and lends it to consumers at 15% to 30% in the form of credit cards. Not all debt is created equal. If consumers can't pay that money back, they file for bankruptcy. If the bank can't pay that money back, the taxpayers bail the TBTF bank out. Not all debt is created equal.

Also, equating per capita debt with average debt is as ridiculous equating per capita assets with average assets. Warren Buffett has a net worth of $76 billion, and a homeless man has a net worth of zero. Their average net worth is $38 billion.

BullyBearish's picture

I'm now convinced that there is only the illusion of tax receipts paying for anything...they don't.  The bankers print all the money they need regardless of tax receipts to spend anyway they want, so there really is no "Debt Burden" on future generations based on current spending.  They will continue to spend no matter what because they are not being held accountable.  However, taxes DO serve a purpose for the bankers.  It's one of the key ways they make sure everyone else has LESS than they do.  Confiscation of wealth through taxes and inflation are the throttles to reduce us while they are free to print for themselves to their heart's content...

Paul Kersey's picture

Right you are. And, if the Fed can create money out of thin air (it created $29 trillion for the banks after the crash), then why couldn't it forgive the debt it created and bought, including the $2.5 trillion in Treasuries it owns?

BullyBearish's picture

That would be like "gifting you the sleeves from their vest"...

chubbar's picture

This printing game is all about power. Think about this, the day that this blows up is the day the US empire dies. We project our power from 900 or so bases overseas as well as a very large blue water navy. It takes a very large amount of either money that can actually buy supplies or a very large logistical effort to grab those supplies in order to service those forces.

Without a currency that is accepted overseas those troops are coming home unless a war is started. That is why this will lead to war, but it still doesn't fix the problem unless the devastation is so great, that all countries are willing to negotiate a new banking/currency system and forget the transgressions of the past system. Even then, there is no way that a new currency can be spent to re-invest/re-charge the SS system, medicaid or other pension systems, which will be worthless under the old system, without fucking up the new currency. This means that the large segment of society now hitting their 60's will be destitute without the advantage of youth to recharge their pensions/take care of their families.

Regardless of that issue, this reset/war will entail SEVERE hardship for the US because most of the retards out protesting or dinduing have never experienced anything other than a long wait to get their double latte at starbucks. We are talking starvation, lack of heat and lots of violence/stealing, etc. along with possible bombing, perhaps nuclear, that wipe out cities. I would expect that world population contracts 50% or more in a scenario like this.

It's hard to imagine a location not severely impacted by this global event. Mostly this is being driven by the fucktards in the US gov't, which means that americans are going to be lepers in the world community for decades to come. Just like the Germans and Japs were after ww2. This is really going to suck, even if you are prepped and manage to escape targeting by the gangs.

slightlyskeptical's picture

It is not difficult to fix the money system. It will be very hard though, because of the current ingrained benficiaries of our current system fighting any change tooth, nail and soul.

Print the money, pay off the debt, print the money to run government on an ongoing basis. Replace the current entitlements and welfare with a UBI. Print that also.

To keep inflation from expoding upwards, ban fractional reserve banking.

Take 90% of any amounts over say $10 million left in estatesat death. Tax smaller estates less. This will bring back home the excess money in economy and will allow the program to keep on into infinity.

Get international cooperation so all countries adopt this tactic. .Set reasonable limits as to how much each country can print and increase based on production. Allow countries that need to build up infrastructure to print extra money, without having to reduce their exchange rate.

chubbar's picture

You do realize that "printing money" = "inflation", right? Fractional reserve banking is just one method of "printing money" into circulation, of course the interest attached to that loan is what makes banks money. The other is for the gov't (or fed) to just "print money". Taxes reduce the money in circulation, thus tempering inflation, not that I'm advocating taxes. Advocating for gov't to just print what it needs isn't going to do anything other than cause that money to lose value. If all the countries print what they need, even if the FX stays the same relative to each country, you are going to see rapid price inflation. If printing money created wealth, the gov't could just print everyone a million dollars and we'd all be rich, think about why that wouldn't be the result if they did.

Your solutions are invalid.

JRobby's picture

There needs to be a way to wake people up to this. This is one avenue. What is more important is for people to wake up.

DEBT = MONEY

PUBLIC DEBT SERVICE = TAXES

PRIVATE DEBT SERVICE = INFLATION & LESS TAXES FROM CORPS

Bend over

Miskondukt's picture

People don't care,  I tell so many this and they just shrug their shoulders. "I can still buy stuff," and sadly the zionst Hollywood  cabal accurately told (Assassins creed movie) the viewers what the DC cabal/Illuminati have been trying "religion, politics, and now consumerism" and most of the sheep are content to be slaves in a fish bowl.

jus_lite_reading's picture

I do believe that this is the reason the globalists are purposely flodding WHITE nations with 3rd world low IQ savages.

 

chubbar's picture

If Trump and Sessions don't get off their fucking ass and start charging high ranking officials in the Pedogate tragedy, they will never be charged after this shit hits the fan. He has to get moving, unless he intends to just sit on his hands and never bring it up. Of course it's possible he uses it as blackmail to get the dems to play ball with this and other matters. If he can extend the ceiling, bring back manufacturing enough where our trade deficit is very low THEN let a currency crisis hit, default and institute a new currency that is gold backed, linked, redeemable (whatever works) then he has a chance to save the country.

aad's picture

for every debt there is a credit. and the money is not owed to martians. 

average debt per person in the world = 0. 

but 99.9% of people are screwed.... 

post turtle saver's picture

it doesn't matter... that which can't be paid back, won't be paid back... at this point it's just a fucking number, you could write an article announcing that the debt is 400 hojillion $USD and no one would give a fuck as life went on...

shit like this gets reset with world wars, it's been a while since we've had one and we're about due...

post turtle saver's picture

and, reading through the replies, it looks like the author doesn't like this little fact of life and has been downvoting anyone who's made this observation or similar...

sorry, your bogeyman stories aren't going to make me lose sleep at night, this article doesn't state anything we don't already know and there's fuck all that can be done about it... even the oh so 'powerful' folks who hold all this debt can't fucking collect it, so who cares?

Snout the First's picture

If we can all agree that the debt will never be repaid, then maybe there should be a discussion of what happens instead? If there is going to be a mass default, I imagine there are some ways of doing it that will cause less chaos than others.

Hobbleknee's picture

We'll make up for it on volume.

Giant Meteor's picture

Absolutely. Volumes of bullshit .. oh, and snapchat, which comes to think of it is a bit redundant ..

canisdirus's picture

We could also inflate it away, like they've been hell-bent on for decades now.

At $2/day, you can pay each person's share off in 30 years. With inflation, it could probably be done in 15-20. They can still kick this can longer than the rest of us can stay solvent.

The real solution at this point is to create non-inflating currencies to operate in that are not controlled by debt-issuing central banks. BTC, only much bigger.

JRobby's picture

"They can still kick this can longer than the rest of us can stay solvent."

That almost sounds like a plan! because it IS THE PLAN!!!!!!

Stack & pack.

rockstone's picture

I hope it's Ray Guy kicking it at Mile High. We're going to need some hang time.

UmbilicalMosqueSweeper's picture

What? No usury? The only sin bigger than that is buying retail!

Giant Meteor's picture

".... which in turn are re-lent by private banks to create pizza stores, "

Figured I'd jump on this first ..

RevIdahoSpud3's picture

In order to go into the store you must first enter through the pizza gate?

Nobodys Home's picture

Logged in just to say..Thanks for the laugh.