Since 2007, the world has packed on a truly staggering amount of debt. That year (2007) is now commonly referred to as a debt bubble. And at that time, global debt was $149 trillion.
Today, 10 years later, it stands at $217 trillion.
Put another way, the world has packed on another $68 trillion in debt since the last debt bubble. In terms of Debt to GDP, the world has risen from 276% in 2007 (an already insane amount) to 327%.
Why does this matter?
Because this debt was built on the back of low interest rates.
In the last 10 years, bond yields have fallen dramatically thanks to endless Central Bank intervention.
In the US, Treasuries hit all time lows.In Europe and Japan, sovereign bond yields actually went to ZERO or even negative as far out as 10 years.
So we have a massive debt bubble based on interest rates remaining at or near record lows…
This is a $217 TRILLION bubble in search of a needle. And unfortunately for the financial world, Central Banks have just that.
Globally, Central Bankers have sent a clear message: the cost of money, AKA bond yields, is going up.
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6 comments:
Well, all of this debt is on paper only. China will never "call" the debt since they would go broke without the U.S. There is so much going on in the world and the folks are so ignorant of it all. Of course if N. Korea fires a nuke that bursts over the U.S. and knocks us off the grid maybe the debt goes to zero. Russia is broke, the EU is broke, perhaps all this rhetoric is just designed to intimidate and put fear in our hearts.
It's the globalist plan we will all be subjects of the new world order with a small ruling class.
818
Do you mean China will refuse to attempt to sell the US Bonds because it doesn't want US Dollars in exchange?
Perhaps China wants the US government to honor the Bonds with real money (gold)?
Is that what you mean by, "China will never "call" the debt since they would go broke without the US"?
China has been accumulating gold in the past 2 decades while the US has emptied out Fort Knox in an effort to hide the fact that the US Dollar is worthless paper. It is the currencies which are worthless, not the Bonds. The Bonds will have to be honored. It is exactly when China and India and Russia ask for repayment of the Bonds (in real money) that the US house of cards will finally collapse. That time is coming very soon. Having the world's reserve currency is a blessing. One that will end very soon. But the financiers (bankers) have taken that blessing and performed alchemy (magic) by printing it out of thin air. Since 1972 the US has reneged on the WWII agreement to issue real money for the world to conduct trade. It is the US government (owned by its evil European Central Bank) that has committed the crime against humanity. Our government is the perpetrator of evil in the world because it was taken over by international bankers who believe their bloodlines are more valuable than the rest of the world. This elitism will end badly and the bankers will not pay the price for their crimes. They will push the punishment off onto the little people who will live indebted to the world for ever. That is the cost of losing our freedom - our financial freedom. We Americans are stupid, and have been duped by the bankers.
Thank you
I agree the Bretton Woods agreement was a real blessing for this once-great Nation.
And the People allowed the bankers to totally destroy the government of this Country.
When Nixon took this Country off of the gold standard, the fix was in.
Now we wait for the collapse.
There is absolutely no way the Country can make good on the US Bonds it sold to other Countries
It is pathetic what our Country became since that time.
A true crime of magnificent proportions, and which most of us cannot even fathom.
How on earth did we get here?
Trillions of US Dollars in debt with no gold to back it.
How very sad.
Yes, they actually could 'crash' our system to 'get to the new world order...one world economic system.'
Correct
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