March 2017: The End Of A 100 Year Global Debt Super Cycle Is Way Overdue
- I have penciled in 15 March 2017 as the next ‘Big Day’ to watch. The FedRes meets that day and the market is pricing a 80% probability of interest rate increase. It is also on 15 March 2017 when the debt ceiling ‘holiday’ expires. Either the Congress extends the ‘holiday’ or increase the debt ceiling formally or the US government will run out of money as it cannot borrow any more. See: Stockman: “After March 15 Everything Will Grind To A Halt”. Will we escape the Ides of March?
- March 2017: The End Of A 100 Year Global Debt Super Cycle Is Way Overdue
by Michael Snyder, http://theeconomiccollapseblog.com/
For more than 100 years global debt levels have been rising, and now we are potentially facing the greatest debt crisis in all of human history. Never before have we seen such a level of debt saturation all over the planet, and pretty much everyone understands that this is going to end very, very badly at some point. The only real question is when it will happen. Many believe that the current global debt super cycle began when the Federal Reserve was established in 1913. Central banks are designed to create debt, and since 1913 the U.S. national debt has gotten more than 6800 times larger. But of course it is not just the United States that is in this sort of predicament. At this point more than 99 percent of the population of the entire planet lives in a nation that has a debt-creating central bank, and as a result the whole world is drowning in debt.
When people tell me that things are going to “get better” in 2017 and beyond, I find it difficult not to roll my eyes. The truth is that the only way we can even continue to maintain our current ridiculously high debt-fueled standard of living is to grow debt at a much faster pace than the economy is growing. We may be able to do that for a brief period of time, but giant financial bubbles like this always end and we will not be any exception.
Barack Obama and his team understood what was happening, and they were able to keep us out of a horrifying economic depression by stealing more than nine trillion dollars from future generations of Americans and pumping that money into the U.S. economy. As a result, the federal government is now 20 trillion dollars in debt, and that means that the eventual crash is going to be far, far worse than it would have been if we would have lived within our means all this time.
Corporations and households have been going into absolutely enormous amounts of debt as well. Corporate debt has approximately doubled since the last financial crisis, and U.S. consumers are now more than 12 trillion dollars in debt.
When you add all forms of debt together, America’s debt to GDP ratio is now about 352 percent. I think that the following illustration does a pretty good job of showing how absolutely insane that is…
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