Home » Posts tagged 'government debt' (Page 4)

Tag Archives: government debt

Olduvai
Click on image to purchase

Olduvai III: Catacylsm
Click on image to purchase

Post categories

Post Archives by Category

Global Debt Is MORE THAN TWICE AS BIG As the Entire World Economy … What Does It Mean?

March 3, 2015

Global Debt Is MORE THAN TWICE AS BIG As the Entire World Economy … What Does It Mean?

The Guardian reports that global debt has grown by $57 trillion dollars – to $199 trillion dollars – since the 2008 financial crisis.

How much is that?  It’s a big number … but what does it actually mean?

The Guardian notes that global debt is now more than twice the size of the entire global economy:

Total debt as a share of GDP stood at 286% in the second quarter of 2014 compared with 269% in the fourth quarter of 2007.

(That’s more than 2.8 times the size of the world economy).

And it will only keep getting worse:

Government debt-to-GDP ratios will to continue to rise over the next five years in a number of countries including Japan, the US and most European countries ….

While the mainstream press talks about “deleveraging”, the fact is that many households are going deeper into debt:

 

…click on the above link to read the rest of the article…

Debtors’ Prison: Global Debt Has Grown $57 TRILLION Since 2007 With 100 Percent Of Sovereign Debt Monetized

February 22, 2015

Debtors’ Prison: Global Debt Has Grown $57 TRILLION Since 2007 With 100 Percent Of Sovereign Debt Monetized

Now that the Greece default crisis is on temporary hold (they will be back again), it is time to turn our focus to the GLOBAL debt market.

Since the subprime mortgage crisis and Lehman failure, global debt has grown by $57 trillion since 2007.,raising the ratio of debt to GDP by 17 percentage points.

gloutdebt

Here is a nice chart from McKinsey &  Company that shows the relative rise of PUBLIC SECTOR debt relative to HOUSEHOLD debt. That is, governments borrowing money on YOUR BEHALF that you are now liable.

debt crisis resolved

Couple this chart with the fact that Central Banks are monetizing 100 percent of sovereign debt.

…click on the above link to read the rest of the article…

 

Dan Amerman: Will Our Private Savings Be Sacrificed To Pay Down The Public Debt? | Peak Prosperity

October 19, 2014

Dan Amerman: Will Our Private Savings Be Sacrificed To Pay Down The Public Debt? | Peak Prosperity.

Recently, an article by Daniel Amerman caught our attention. Titled Is There A “Back Door” Method For The Government To Pay Down The Federal Debt Using Private Savings?, it details the process known as financial repression, where sovereign debts are slowly paid off by syphoning private savings from an unaware populace.

In this week’s podcast, Chris discusses the mechanics of the process, as well as its probability, with Dan:

To understand financial repression, we have to understand that we’ve been there before. Many nations have gone through periods in the past where they’ve had very high levels of government debt. And there are four traditional ways of dealing with that.

One of them is austerity. Everyone understands that. You raise the tax rates. You lower the government spending. This is a painful choice. It can last for decades. And what do you think the voters think about that?

 

…click on link above to read the rest of the article…

Post navigation

Newer posts →

Olduvai IV: Courage
Click on image to read excerpts

Olduvai II: Exodus
Click on image to purchase

Click on image to purchase @ FriesenPress