Global DEBT Crisis..!!

GLOBAL DEBT CRISIS

You have to go back as far as the late 1800's, early 1900's, to see a time when the Global Economy was in such a bad state as it is today.

This is no typo, this does say late 1800's, early 1900's..!!

DEBT LEVELS

Global debt levels have risen steadily over the last +100 years and more so over the last +35 years.

This rise in Global Debt is totally unsustainable and never before in the last +100 years has this level of Debt been so critical.

We are facing what could possible be the greatest financial crisis in human history and yet people are totally oblivious to the reality.

This financial crisis has spread throughout the globe like a cancerous epidemic and the outcome will not end well for most.

GLOBAL ECONOMY

Despite what fiction is being peddled by experts and officials the true picture is far from the story that is being told.

The Global Economy is sick, it is very sick, and no matter how much fudging and manipulation that is done to mask the real truth, the net is closing in on reality.

STEALING FROM FUTURE GENERATIONS

In order to mask what is really happening today, wealth creation is being robbed from future generations by stealing their wealth potential to pay for the burden of today.

Current Policy Markers are borrowing huge sums of money that have to be paid back sometime and are doing so rather than face up to the reality that they are in.

Effectively these Policy Makers are living beyond their means today at the expense of generations to come.

SOVEREIGN, CORPORATE AND HOUSEHOLD DEBT

It is not just Sovereign Debt that is borrowing wealth from the future, but also Corporate and Household Debt is also on a borrowing spree.

Since the last financial crisis of 2008, Debt has approximately doubled and yet Global GDP, the measure of output, together with asset valuations are a fraction of this increase.

DEBT RATIOS

When you combine all forms of debt together, the Debt to GDP currently stands at a mind blowing 350% and is simply unsustainable in the current market environment that is seeing more and more robotics replace humans in the workplace.

PUTTING THE NUMBER INTO PERSPECTIVE

Currently there is approximately $275 trillion of Global Debt, plus a further $750 trillion of Global Unfunded Future Liabilities, and this is on top of a staggering $1.5 quadrillion ($1,500 trillion) of notional derivatives.

This colossal sum of $2.525 quadrillion ($2,525 trillion) is against a Global Annual GDP (output) of Goods and Services of a mere $75 trillion..!!

RECESSION

Despite the "rose tinted" vision of the Global Economy we have been in a deep recession since the financial crisis of 2008 when you deduct the huge sums of Stimulus, Debt and Derivatives that have been taken on to prop up the Economy and it is this interference by Central Bank Policy Makers that will ultimately result in a catastrophic reality check.

DEBT IS ALL AROUND

If you take a look around Debt problems are all around, including; Brazil, Venezuela, Greece, Italy, Portugal, most of the EU, the US, and not to mention the Far East. This list continues to grow.

GLOBAL STOCK MARKETS

Most people are blinded by the recent highs seen in Global Stock Markets and as I have talked about in the past, The Economy, The Market, and The Stock Market are three TOTALLY DIFFERENT THINGS..!!

These overvalued, pumped up Stock Markets, which are being fed by Central Banks and stimulus are there purely to serve as an illusion that everything is OK.

Things are far from OK..!!

THE WORST IS YET TO COME

The Financial Crisis of 2008 is always being referred to as "the worst it will get", but the problems that caused the 2008 Financial Crisis were never resolved.

If anything the "Derivatives Trigger" that caused the Financial Crisis has got worse, a lot worse, and the next crisis will make the 2008 Financial Crisis look like a walk in the park..!!

Thanks again for reading.

Stephen