U.S. All Sector Debt At $80.8 Trillion; Debt-to-GDP at 414%

It’s fair to say that the world is in an inescapable debt trap.

According to the Institute of International Finance, global debt-to-GDP stands at 331% as of first quarter of 2020.

For the United States, the all sector debt has surged to $80.8 trillion.

Prior to the financial crisis of 2008-09, the all sector debt in the United States was around $50 trillion. In just over a decade, the total leverage in the economy has expanded significantly.

As a matter of fact, most advanced economies have an overleveraged government and consumer sector.

So why is this relevant?

Well, global debt has reached a point of no return. To artificially support growth, leverage will increase in the coming decade.

Since debt is money, higher debt will manifest itself in the form on higher inflation and speculation across asset classes.

Fiat money will continue to lose value. According to official BLS data, the dollar has lost 96% of its value since the
Federal Reserve was formed in 1913.

Fiat money depreciation will accelerate in the coming years.

This is good news for gold, silver and cryptocurrencies.