{"id":40374,"date":"2018-11-10T08:24:59","date_gmt":"2018-11-10T13:24:59","guid":{"rendered":"http:\/\/olduvai.ca\/?p=40374"},"modified":"2018-11-10T08:24:59","modified_gmt":"2018-11-10T13:24:59","slug":"global-gdp-still-propped-up-by-a-massive-amount-of-debt","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=40374","title":{"rendered":"Global GDP Still Propped Up By A Massive Amount Of Debt"},"content":{"rendered":"<header class=\"entry-header clearfix\">\n<h3 class=\"entry-title\"><a href=\"https:\/\/srsroccoreport.com\/global-gdp-still-propped-up-by-a-massive-amount-of-debt\/\">Global GDP Still Propped Up By A Massive Amount Of Debt<\/a><\/h3>\n<\/header>\n<div class=\"entry-content clearfix\">\n<p>While the government agencies and economists continue to publish strong GDP figures, they seem to overlook how much debt it took to produce that growth.\u00a0 Or should I say, the \u201csupposed growth.\u201d\u00a0 The days of adding one dollar of debt to get one dollar of GDP growth have been long gone for more than 40 years.\u00a0 And, as global debt has increased, it has forced governments to lower interest rates.<\/p>\n<p>Yes, it\u2019s really that simple.\u00a0 I get a good chuckle when I hear analysts talk about rising interest rates to 10-15%.\u00a0 If the U.S. Government interest rate on the Treasury Bonds increased to just 5%, Uncle Sam would be paying over a trillion dollars a year just to service the debt.\u00a0 So, no\u2026 we aren\u2019t going to see 10-15% rates again.<\/p>\n<p>Well, we could\u2026 but, most of the global debt would have to collapse or be forgiven.\u00a0 Unfortunately, if global debt vaporizes or is forgiven, then the entire economy collapses as well.\u00a0 We must remember, GDP growth is also driven by oil production growth.\u00a0 There is no way in HADES that the oil industry can fund future production with 10-15% interest rates.\u00a0 IT JUST AIN\u2019T GONNA HAPPEN.<\/p>\n<p>Why?\u00a0 If it weren\u2019t for the Fed dropping rates down to nearly zero, the Great U.S. Shale Oil Ponzi Scheme and the six million barrels per day of unprofitable shale oil production would have been a pipe dream.\u00a0 I can assure you that the shale oil industry could not fund operations or service their debt with 10-15% interest rates.<\/p>\n<p><strong>Most shale oil companies are paying on average between 4-5% interest to service their debt.\u00a0 If the companies\u2019 interest rates double or triple, then it would make it extremely difficult to service the shale industry debt that is estimated to be $280-$300 billion.<\/strong><\/p>\n<p>\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Global GDP Still Propped Up By A Massive Amount Of Debt While the government agencies and economists continue to publish strong GDP figures, they seem to overlook how much debt it took to produce that growth.\u00a0 Or should I say, the \u201csupposed growth.\u201d\u00a0 The days of adding one dollar of debt to get one dollar [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[1806,195,240,353,4549,391,431,534,12073],"class_list":["post-40374","post","type-post","status-publish","format-standard","hentry","category-economics","tag-bubble","tag-debt","tag-economic-growth","tag-gdp","tag-gross-domestic-product","tag-growth","tag-interest-rates","tag-monetary-policy","tag-srsrocco-report"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/40374","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=40374"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/40374\/revisions"}],"predecessor-version":[{"id":40375,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/40374\/revisions\/40375"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=40374"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=40374"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=40374"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}