Global debt and the looming ‘dead end’

Growth in the global debt load is outpacing GDP growth, and something will eventually have to give.  And when it starts, things could get out of hand very quickly.

As the old saying goes, “nations go broke very slowly, and then all at once.”

Global Debt-to-GDP Is Exploding Once Again
(% of global GDP, excluding financials)

*Data based on OECD, IMF, and national accounts data.
Source: Buttiglione, Lane, Reichlin, & Reinhart. “Deleveraging, What Deleveraging?” 16th Geneva Report on the Global Economy, September 29, 2014.                                Chart courtesy of John Maudlin / Oct 26, 2014  / The EM Borrowing Bonanza

Debt service is a drain on a economic vitality.  And when debt service demands a continually greater share of a nation’s available resources, and nations are forced to ‘create’ (print) fiat currency to ‘manage’ their debt obligations, paper ‘money’ will inevitably lose value in relation to hard assets.

Central Banks can coordinate monetary policy and utilize their various policy ‘tools’ (tendering favorable, or blatantly gainful, liquidity access for their financial conduit  institutions) to give the appearance of economic health and price stability.  But coordination has its limits and can be difficult to maintain.

And socio-political events can swamp the best laid plans of Central Banks.

A harsh ‘reset‘ is coming.  No one has a crystal ball to know exactly when, but the clock is ticking.

Paper assets will lose value in relation to ‘real assets’ (land, income producing assets, precious metals, energy, food).

When it comes, the reset could lead to complete disorder in the credit markets, pricing mechanisms in global trade, and disruptions in supply – globally and nationally.

The reset could have devastating effects for the general populace.

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America needs a plan that will provide substantial access to liquidity for U.S. citizens, and there is one plan that delivers that access through a Citizens Credit Facility.

The Leviticus 25 Plan is a powerful economic revitalization plan that provides massive debt relief at the family level – a crucial benefit for a nation’s citizens during a fiat currency reset.

There is no other plan anywhere that offers the dynamic benefits of this plan.

 

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