Global Debt Hits Record $237 Trillion, Up $21TN In 2017

Last June we reported  that according to the Institute of International Finance - perhaps best known for its periodic and concerning reports summarizing global leverage statistics - as of the end of 2016, in a period of so-called "coordinated growth", global debt hit a new all time high of $217 trillion, over 327% of global GDP, and up $50 trillion over the past decade.

Six months later, on January 4, 2018, the IIF released another global debt analysis, which disclosed that global debt rose to a record $233 trillion at the end of Q3 of 2017 between $63Tn in government, $58Tn in financial, $68TN in non-financial and $44Tn in household sectors, a total increase of $16 trillion increase in just 9 months.

Now, according to its latest quarterly update, the IIF has calculated that global debt rose another $4 trillion in the past quarter, to a record $237 trillion in the fourth quarter of 2017, and more than $70 trillion higher from a decade earlier, and up roughly $20 trillion in 2017 alone.

The IIF report, which also sources data from the IMF and BIS, found that the share of global debt remains well above 300% of global GDP, with mature market, i.e., DM, debt/GDP now at 382%. The silver lining: that number was slightly below recent levels, as increasing GDP growth in DMs helped reduce the debt-to-GDP ratio. However, this was more than offset by a surge in debt in emerging markets, where total debt/GDP is now well above 200%.

The good news, if only temporarily, is that on a consolidated basis, global debt/GDP fell for the fifth consecutive quarter as global growth accelerated: the ratio is now around 317.8%, or 4% points below the all time high hit in Q43 2016. To be sure, even a modest slowdown in GDP growth, let alone a contraction, will promptly send the ratio surging to new all time highs.

So what was the culprit for this unprecedented debt surge? Central banks of course.

“Still-low global rates continue to support unprecedented levels of debt accumulation,” officials from the IIF said in a release.

As the report also notes, among mature markets, household debt as a percentage of GDP hit all-time highs in Belgium, Canada, France, Luxembourg, Norway, Sweden and Switzerland, which - as Bloomberg correctly notes - That’s a worrying signal, with interest rates beginning to rise globally. Ireland and Italy are the only major countries where household debt as a percentage of GDP is below 50 percent.

IIF representatives also highlighted the weaker U.S. dollar as having “masked longer-term concerns about debt sustainability, particularly in emerging markets.” The reduction in debt to GDP came mainly from developed markets, such as the United States and Western Europe, but was an overall trend with 36 of the 49 countries in the survey’s sample recording a drop in debt-to-GDP.

Among emerging markets, household debt to GDP is approaching parity in South Korea at 94.6 percent.

Finally, the report also found that U.S. government debt is now 99% of GDP as a sector. With the United States expected to record a $1 trillion budget deficit by 2020, according to the latest just released CBO forecast, the US should cross 100% debt/GDP in the next few months...

Comments

All Risk No Reward Hopeless for Change Tue, 04/10/2018 - 13:05 Permalink

I believe the better description of the Big Bad Lender is the Money Power Monopolist cartel.

Yes, the Rothschilds are part of that cabal, but I think it is an error to think they **are** that cabal.

European Royalty (British, Spanish, Italian, etc..) has to be involved in the Money Power Monopolist cartel, too.

Most money is owed to their Mega-Corporate fronts, which they own and control.  BTW, that includes government and Democratic, Inc. and Republican, Inc. as well.

The Supranational Money Power Monopolist Global Mega-Corporate Fascist Empire is the most accurate name for the empire that rules over so-called "Western Civilization."

====================

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

Renaissance 2.0 The Rise of [Debt-Money Monopolist] Financial Empire
https://www.youtube.com/watch?v=96c2wXcNA7A

Debunking Money
https://www.youtube.com/watch?v=5iBSBVew-3Y

Krugman (and each MIT economist professor - THEY KNOW AND LIE TO THE GULLIBLE MASSES!) is a Goebbelsian propagandist as he covers the crimes of wolves with his fake sheep suit and lisp.

Krugman to Lietaer: "Never touch the money system!"
https://www.youtube.com/watch?v=Q6nL9elK0EY

In reply to by Hopeless for Change

BandGap Tue, 04/10/2018 - 10:45 Permalink

So what.

Debt is meaningless when there is no reasonable chance it will be paid back. From the US side what difference to citizens does this make anyhow? I am a slave to whatever stupidity my government engages in. Same shit worldwide. Then the wars get realy humming and the winners get to tell the story of how the other side tried to screw them.

And away we go.

All Risk No Reward BandGap Tue, 04/10/2018 - 13:08 Permalink

>>Debt is meaningless when there is no reasonable chance it will be paid back<<

You have a lot to learn.  But since you can't work it out on your own, hang around a bit and tell me how debt, even fraudulent debt-money finite zero-sum debt-money debt, is meaningless when the entire planet is asset stripped of its debt collateral.

In reply to by BandGap

Nuclear Winter Tue, 04/10/2018 - 10:46 Permalink

Chinese double-book, double-blind accounting; US politicians drunk with spending and addicted to cash; the central banksters continue to print money since they can't fill the money pit fast enough. What's the worry?

And we told by CDC, gov agencies and MSM to be worried about asteroids, Disease X, Yellowstone eruption, aliens? Hell no, we will be free from the failed wretched system once WW III breaks out.

Vlad the Inhaler Tue, 04/10/2018 - 10:47 Permalink

How will it ever get paid down?  Real growth, nope.  Miracle of god, debt jubilee, world war, maybe.  Extend and pretend, as long as possible.  Devalue the currencies, definitely.

All Risk No Reward Vlad the Inhaler Tue, 04/10/2018 - 13:11 Permalink

>>How will it ever get paid down?  Real growth, nope.  Miracle of god, debt jubilee, world war, maybe.  Extend and pretend, as long as possible.  Devalue the currencies, definitely.<<

You don't comprehend the nature of a debt-based monetary system.

Can society "devalue currency" by continually increasing your credit card expenditures?

Why, yes, they can.

How is that "devalue" strategy going to work out in the end...  and assume that the credit card debt is collateralized as is most real world debt.

This is a criminal operation...  in fact, it is the most sophisticated, largest criminal operation ever undertaken in human history.

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

Renaissance 2.0 The Rise of [Debt-Money Monopolist] Financial Empire
https://www.youtube.com/watch?v=96c2wXcNA7A

Debunking Money
https://www.youtube.com/watch?v=5iBSBVew-3Y

Krugman (and each MIT economist professor) is a Goebbelsian propagandist as he covers the crimes of wolves with his fake sheep suit and lisp.

Krugman to Lietaer: "Never touch the money system!"
https://www.youtube.com/watch?v=Q6nL9elK0EY

In reply to by Vlad the Inhaler

Cautiously Pes… Tue, 04/10/2018 - 11:06 Permalink

When the economic well-being of their nation demanded a strong and creative response, my colleagues at the Federal Reserve... mustered the moral courage to do what was necessary.
~ The Bernanke  (a.k.a. Edward Quince)

Paul Morphy Tue, 04/10/2018 - 11:17 Permalink

Our - Ireland's - Gross Domestic Product data is not credible.

Our GDP data includes turnover for many companies who only have a tax residency here and have no commercial operations present in this jurisdiction.

 

Ireland's nominal debt has barely changed since 2008 when it owed €180 billion, it still owes €180 billion.

In an artificially low interest rate environment.

the_river_fish Paul Morphy Tue, 04/10/2018 - 11:50 Permalink

Parts of the EU have seen nominal GDP per capita fall over the past decade. Real GDP (inflation adjusted) is negative.

https://thistimeitisdifferent.com/eu-gdp-2007-2017

And look at Greece. 42% loans on the books of banks are in default. The Athens Composite index is up 19% over the past year (but down 84% since 2007). Lots of bad loans still in the system in Europe.

https://thistimeitisdifferent.com/european-banking-crisis-is-far-from-over

 

 

In reply to by Paul Morphy

Paul Morphy the_river_fish Tue, 04/10/2018 - 12:48 Permalink

My country's GDP figures are massaged. For example, aircraft leasing services are included in Ireland's GDP data. 

None of these leased aircraft are built in Ireland, so no jobs are provided. No contractors here provide parts/maintenance to the same leased aircrafts.  There are a few jobs in aircraft leasing exist but that is it. That is the entire extent of the impact of aircraft leasing on our economy. A few jobs for lease brokers, a few lawyers, a few accountants and administration staff.

But the turnover from all of those leases agreements is included in our national GDP figure. It therefore creates an artificially enhanced GDP figure for economic activity, which generates no real income for the local/national economy. If each of these planes were built and maintained in Ireland, providing thousands of jobs, then their inclusion in our GDP data would be accurate and truthful. Instead we have an artificial figure which brings no benefit directly to the wider economy.

 

Included all the other scams such as booking IP income, pharma licencing income, patent incomes : little or no jobs get provided while it appears that all this activity is making Ireland "rich".

 

 

In reply to by the_river_fish

Balvan Tue, 04/10/2018 - 11:35 Permalink

More debt = more goods and services produced. We live in a debt based money system. And you need more money to cover the world output. Wipe out the debt, and you've wiped out the money and private savings out of the system. Basic macro accounting. Word "debt" in macro meaning is not bad.

 

This nonsense about the "debt" is classic fear mongering

All Risk No Reward JibjeResearch Tue, 04/10/2018 - 13:16 Permalink

>>Your wealth is depreciated every fricken day when the CBs print fiats!<<

They don't "print fiats."  They are "notes" - they are LENT INTO EXISTENCE AT INTEREST.

Yes, they devalue existing currency during the debt-money bubble exponential growth phase.

The classic error that almost everyone makes is that they assume the past will continue into the future indefinitely, mathematics and laws of nature be d*mned (usually by simply ignoring them).

The very purpose of the debt-money bubble is two-fold.  First, it creates incentives for massive wealth creation.  Lots of stuff is created during debt-money bubble phases.  Second, it results in a debt-money bust in which the majority of that created wealth, along with pre-existing wealth, is asset stripped by the Money Power Monopolists and their Mega-Corporate Fronts.

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

Renaissance 2.0 The Rise of [Debt-Money Monopolist] Financial Empire
https://www.youtube.com/watch?v=96c2wXcNA7A

Debunking Money
https://www.youtube.com/watch?v=5iBSBVew-3Y

Krugman (and each MIT economist professor) is a Goebbelsian propagandist as he covers the crimes of wolves with his fake sheep suit and lisp.

Krugman to Lietaer: "Never touch the money system!"
https://www.youtube.com/watch?v=Q6nL9elK0EY

In reply to by JibjeResearch

RedBaron616 Tue, 04/10/2018 - 13:28 Permalink

And exactly how are we to believe that these figures are accurate? We are talking about the entire world. You think you can get legitimate data from China? What are you doing with their numbers, guessing? Bogus story that throws a lot of thunder and lightning, signifying nothing.

Herdee Tue, 04/10/2018 - 13:37 Permalink

The American government will soon embarrass trillion dollar deficits. Just watch, these NeoCons actually believe that debt doesn't matter and that they can print as much "money" as they want. Pompous pigs.

abgary1 Tue, 04/10/2018 - 13:39 Permalink

We can thank the central banks for this because they are manipulating the interest rates to drive demand when it should be the other way around. The tail is wagging the dog.

End the central banks and neo-classical economic theory.

To understand how illogical neo-classical economic theory really is please read Debunking Economics: The Naked Emperor Dethroned? by Prof. Steve Keen (www.patreon.com/ProfSteveKeen).

 

Lie_Detector Tue, 04/10/2018 - 15:26 Permalink

Since the thieves at the Central banks create "money from nothing" and charge interest on it, until they are toppled debt will rise indefinitely until they "own" everything.