Global debt hits new record

[bernorange 8386]

Quote

– Global debt bubble hits new all time high – over $237 trillion
– Global debt increased 10% or $21 tn in 2017 to nearly a quarter quadrillion USD
– Increase in debt equivalent to United States’ ballooning national debt
– Global debt up $50 trillion in decade & over 327% of global GDP
– $750 trillion of bank derivatives means global debt over $1 quadrillion

...

https://news.goldcore.com/us/gold-blog/global-debt-bubble-hits-new-all-time-high-one-quadrillion-reasons-to-buy-gold/

So, in response the to 2007/2008 crisis (or crises if you prefer to think that the world is not globally connected) and it's aftermath, central banks around the globe danced their way to ZIRP (or even NIRP).  There is no where to go from here.  Raising rates will only feed the already ballooning debt spiral.

Pretty sure there was a moose out front once a upon a time that warned folks about the dangers of fiat currencies, but we live in an enlightened age I guess.  I don't understand how anyone thinks we can play shoot the moon with infinitely long rails.

 

[Biff Tannen 46203]

I hated that game.

[Shmitty 112]

What happens if the world doesn't pay down its debt, will Martians from Mars seize all of our assets and take over?   

[Hugo Stiglitz 23367]

Yeah well, until we find out the debt levels of other planets, I’ll hold off judgment.

 

/sarcasm 

[Firemans4Horn 18533]

How’d shorting the market since 2010 work out for you and sushihorn?

 

#zerohedge #worldisending

[elfenix 34780]

goldcore.com?  sounds legit.

[bernorange 8386]

@Firemans4Horn - I never shorted the market nor advocated that anyone else should do so.  The problems I worried about in 2007/2008 have never gone away and it's not my fault if you can't understand what I've actually been writing for last ten years or so.

@elfenix - I like goldcore's blog.  If it's not your cup of tea, no problem.  You can verify the facts mentioned from the primary sources if you like.  Are Bloomberg and the BIS good enough for you?

[elfenix 34780]

It's not the facts I'm worried about, it's the implications that all you fucking gold spammers have continually gotten wrong, but want to base policy on.

[bernorange 8386]

All us fucking gold spammers.  Awesome.  History and math point to an inevitable conclusion, but you go ahead and keep crowing about how wrong I am because we aren't there yet.  We can keep shooting the moon until we can't.  You apparently have faith that central banks and governments can keep the ball on the rails forever because they've managed to keep the ball rolling for ~47 years.  Hubris.

Edited April 16, 2018 by bernorange

[El Diablo 4232]

1 hour ago, Hugo Stiglitz said:

Yeah well, until we find out the debt levels of other planets, I’ll hold off judgment.

 

/sarcasm 

Does John Maynard Keynes live on one of those planets?

[Hanrahan 1306]

I personally blame the Chinese for this nonsense.  I say we blow their shitty Russian aircraft carrier up.

Edited April 16, 2018 by Hanrahan

[Wally Fairway 5678]

I thought the Moose out front said the crypto-currency was the saving grace for those looking for an savior  ¯\_(ツ)_/¯

Edited April 16, 2018 by Wally Fairway

[Doc Holliday 199]

Hoorrraaaaay Debt!

Let's turn some more trees into mush and print some more paperbacks.

I'd like to submit for a vote:  Making April 16th National Debt day where we all party it up and drink to our hearts delight on tabs that we don't ever have to pay in honor of this glorious day.

[Doc Holliday 199]

and let's wipe out the dollar, hard reset, and install my fucking ameros as the new system.  win, win. 

[HOOKEM4 5198]

I have a shitload of ameros from all the stuff I sold on shaglist then traded the best buy coupons for.

[Doc Holliday 199]

10 minutes ago, HOOKEM4 said:

I have a shitload of ameros from all the stuff I sold on shaglist then traded the best buy coupons for.

sucks since they are closing so many best buy stores

[52-80 19377]

goddamn poor people.

[Stella Link 535]

Ok, so who are these countries that are running up all of the global debt?  We need to cut off their credit and put them on a austerity repayment plan.....oh, wait....

[El Diablo 4232]

It's Iceland.

[Steamboat1874 4391]

Obviously I am an idiot when it comes to this shit but I remember hearing, in 1973, how America's national debt was going to crush everything in this country......oh and about that same time how soccer would become the most popular sport in the US because of all of the kids playing.

Well?

 

 

 

 

 

 

 

[Bevo 13926]

What would happen in a debt jubilee where all debt was wiped clean and we all started over again with no debt?

What would happen with limited debt forgiveness where we ended student loan debt or mortgage debt?

[Wally Fairway 5678]

4 hours ago, Stella Link said:

Ok, so who are these countries that are running up all of the global debt?  We need to cut off their credit and put them on a austerity repayment plan.....oh, wait....

All of them.

Nothing a global war, famine or plague can't cure.

[bernorange 8386]

Quote

Turkish President Recep Tayyip Erdoğan has suggested that international loans should be contracted based on gold instead of U.S. dollars in order to prevent exchange rate pressure on economies.

“I made a suggestion at a G20 meeting. I asked: Why do we make all loans in dollars? Let’s use another currency. I suggest that the loans should be made based on gold,” Erdoğan said during a speech at the opening ceremony of the Global Entrepreneurship Congress in Istanbul on April 16.

“With the dollar the world is always under exchange rate pressure. We should save states and nations from this exchange rate pressure. Gold has never been a tool of oppression throughout history,” he added.
...

http://www.hurriyetdailynews.com/intl-loans-should-be-based-on-gold-not-dollars-erdogan-130413

Tangentially related to the topic of this thread.  We lost my tin foil hats meta thread in the move from the old place, so maybe I'll just let this one serve that purpose.  Anyway, this is just an extension of the reserve currency issue that I've been warning about for some time. 

[staboner 5098]

23 hours ago, Shmitty said:

What happens if the world doesn't pay down its debt, will Martians from Mars seize all of our assets and take over?   

we all owe everyone everyone else's money. its so much fun

i am sure men of all countries will come together and peacefully find their way out of this. YOU CAN BANK ON IT

[bernorange 8386]

I found this fun site where you can play with budget projections:

https://www.usgovernmentspending.com/federal_budget_fy19rs12018n

Scroll down to the pie chart and you can click on the links for different years.  Try clicking on successive years and guessing what percentage of the pie the interest on the debt will be.  You can also click the Interest Analysis tab to get this page:

https://www.usgovernmentspending.com/federal_budget_interest

Here you can see what exciting effects can be realized if we raise the interest rate on the debt.  Of course the numbers are just estimates and projections, but it does give you an idea just how big the elephant in the room really is.

 

[bernorange 8386]

 

Quote

The International Monetary Fund today sounded the alarm on excessive global borrowing, warning that with a total of $164 trillion owed, the world's public and private sectors are deeper in debt than at the height of the financial crisis a decade ago.

Global debt is now more than twice the size of the value of goods and services produced every year and at 225 percent of global gross domestic product it is now 12 percentage points higher than at its previous peak in 2009.

The fund said there was now an urgent need to reduce the burden of debt in both the private and public sectors to improve the resilience of the global economy and provide greater firefighting capability if things went wrong. ...

https://www.ft.com/content/d4bf2984-42d2-11e8-93cf-67ac3a6482fd

Their numbers don't match the numbers reported by Bloomberg and apparently don't include the derivatives numbers from the BiS either.

Edited April 19, 2018 by bernorange