The $233 Trillion Dollar Dark Cloud Of Global Debt

Authored by Alex Deluce via GoldTelegraph.com,

Global debt has reached record heights without any signs of relief. While central bankers try to explain away the phenomenon of these out-of-control numbers, it’s not much of a mystery. Immediate consumption with the promise of repayment sometime in the future has consequences.

Global debt is staggering to the point most of it will never be repaid. Certainly not in our generation. Perhaps by our grandchildren, but as global debt keeps mounting, the picture is doubtful.

The per capita global debt is $30,000. Who, exactly, will be making repayments?

Economists insist that the 2007 financial crisis could not have been predicted. Yet, all the signs of out-of-control credit where there. Today, economists are repeating the same mantra, despite the spiraling world debt. The question is not if the next bubble will strike. It’s a matter of when.

The math is fairly simple. The more a country increases its debt to simply stay afloat, the more like the increasing debt will cause a tightening of credit. The next step in the equation is a burst bubble and economic crisis. This is what happened in 1929, happened again in 2007, and it’s happening now. Past behavior is the best predictor of future behavior.

Out-of-control credit will undoubtedly slow down the US’s current economic growth. It probably won’t cause an outright crisis. Other countries may not be as fortunate.

Countries such as China, Belgium, South Korea, Australia, and Canada are experiencing an unprecedented credit bubble, with few systems in place to control it. The resulted inflation or simply write-offs of debts could result in a global financial disaster we have not seen before. The current economic upswing is unlikely to continue.

Prior to 2007, globalization, the exchange of goods and services between countries, was at its highest level. Since then, globalization has leveled off. We may have seen the peak of globalization. Emerging countries, benefiting from globalization, have raised their standard of living and cheap goods are no longer crossing borders with the same abandon. Countries are instituting nationalistic protectionist measures to protect their own economy. Globalization is giving way to “islandization,” where the movement of capital and good across borders is being limited instead of expanded. This limited global trading, along with rising geopolitical tensions, will negatively affect global economic expansion, while the global debt is still spiraling out of control.

The global economy is also currently suffering from limited growth in productivity. The reasons for this are wide-ranging, from an aging labor force, reduced investments, neglected infrastructures, reduced entrepreneurship and the general uncertainty how to resolve these problems.

If a global crisis is to be averted, leaders need to act instead of remaining complacent. Proper skills training and greater emphasis on investments can lead to the productivity growth that can create the global expansion necessary to tame the current debt cycle.

If leaders make the right choices, our grandchildren may not face the economic crisis which currently appears to the only legacy they will inherit.

Comments

Pinto Currency JRobby Sat, 03/17/2018 - 18:47 Permalink

The global debt bubble was caused by shutting down the main warning system of monetary inflation - the price of gold - in London on the world's primary gold trading platform.

Here's how they did it:

https://safehaven.com/article/42493/transition-of-price-discovery-in-the-global-gold-and-silver-market

p.s. the market regulator, The Bank of England, created the paper LBMA.

In reply to by JRobby

Caloot DocMims Sun, 03/11/2018 - 15:15 Permalink

Debt is borrowing money.  This isn't debt.  This is fiat credit creation  used to monetize outstanding liabilities and lower interest rates for the  cause of appeasing a voter base.  It's the malinvestment created by the currency creation that is the resultant cancer.   Debt itself, based on free market principles, used to invest in capital improvements that have benefits that outweigh the borrowing cost improve our standard of living.  Fiat creation to purchase votes is not debt.   It's democracy.

In reply to by DocMims

bshirley1968 Four Star Sun, 03/11/2018 - 14:44 Permalink

"If a global crisis is to be averted, leaders need to act instead of remaining complacent. Proper skills training and greater emphasis on investments can lead to the productivity growth that can create the global expansion necessary to tame the current debt cycle.

If leaders make the right choices, our grandchildren may not face the economic crisis which currently appears to the only legacy they will inherit."

This guy is smoking crack. 5.5 billion people in the world live on less than $20 a day.....I am be generous with the $20.....probably more like $5. World debt represents $30k per person? And he thinks we ever pay that back?.....ever? I don't see us ever paying it down, much less back.

This never changes until the system collapses under its own weight.....and we rid the world of central banks for good. They need debt, we don't. They profit from debt, we don't. They scheme ways to increase debt, we look for ways to limit it. Debt is not the problem, banksters are the problem.

In reply to by Four Star

All Risk No Reward Chupacabra-322 Sun, 03/11/2018 - 15:34 Permalink

The Money Power Monopolist Debt-Star is now fully operational, Lord Rothschild.  Deploy when ready!

(The Debt-Star is a more advanced version of the Death Star that leaves the planet intact and the plant's population dazed and confused because they don't have the ability to know what is being done to them.)

How To Be a Crook
https://www.youtube.com/watch?v=2oHbwdNcHbc

Poverty - Debt Is Not a Choice
https://www.youtube.com/watch?v=t7BTTB4tiEU

"The greatest shortcoming of the human race is its inability to understand the exponential function."
~Professor Albert Bartlett

The Crash Course - Chapter 3 - Exponential Growth
https://www.youtube.com/watch?v=CvVFTJMUEj4

The Crash Course - Chapter 4 - Compounding Is The Problem
https://www.youtube.com/watch?v=ijf7UxI7EFE

In reply to by Chupacabra-322

DillyDilly Yellow_Snow Sun, 03/11/2018 - 15:22 Permalink

I'll take the other side...

 

It's all coming undone before your eyes.

 

The only ones still clinging to that sinking TITANIC anymore are:

 

- hillbilly wannabees like the Clintons

- the Shrub family

- Rockefeller inbred offspring

- undead Soros

- Netanyahu

 

and then the whole staff of WHITE STAR LINE employees manning the rowboats & letting Lloyd Blankfein get on along with the women & children.

 

It's OVER (except for all the screaming & wailing when flesh meets icy cold water).

In reply to by Yellow_Snow

All Risk No Reward Katos Sun, 03/11/2018 - 15:38 Permalink

>>Who exactly do we owe ALL this money to??<<

The Supranational Money Power Monopolists and their Mega-Corporate and Governmental Fronts.

Behold!  The Supranational Money Power Monopolist Global Mega-Corporate Fascist Empire!

The answer to your questions resides in the proper name of the Big Bad on planet Earth.

John the Revelator simply described this current system as a "wealthy woman" who rides a "beast empire" system and has illicit relations with ALL the nation states.

In reply to by Katos

bshirley1968 Sun, 03/11/2018 - 14:21 Permalink

The coming reset will bring massive pain to developed countries.   There is no way out of this without pain: self imposed or by consequences. 

We do not have the leadership with enough grit and character to self impose the discipline necessary that will lead to massive pain, so we are left with the consequential results that will play out in the progression of time and the pain will be that much worse.

The upside for leadership on just letting it happen is it will be hard to find just who to blame.  When it happens,  I intend to hold all current and past "leadership" responsible. 

All Risk No Reward bshirley1968 Sun, 03/11/2018 - 15:39 Permalink

>>The upside for leadership on just letting it happen is it will be hard to find just who to blame.  When it happens,  I intend to hold all current and past "leadership" responsible. <<

The Money Power Monopolists are to blame because they DICTATED MONOPOLISTIC CONTROL OF A DEBT INSTANTIATED MONEY SUPPLY...

How To Be a Crook
https://www.youtube.com/watch?v=2oHbwdNcHbc

Poverty - Debt Is Not a Choice
https://www.youtube.com/watch?v=t7BTTB4tiEU

“In our time, the curse is monetary illiteracy, just as inability to read plain print was the curse of earlier centuries.”
~Ezra Pound

In reply to by bshirley1968