Global debt is grinding its way to every higher levels.
“Something”… will have to ‘give’… sooner or later..
Things could get chaotic when when it the ‘reset’ blows in.
by Chris Martenson – Monday, February 8, 2016, 11:28 pm Excerpts:
Financial markets the world over are increasingly chaotic and either retreating or plunging. Our view is that there’s a gigantic market crash in our future and it’s possible that this has started now. read more »
Too Much Debt
Our diagnosis of the fatal flaw facing the global economy and its financial systems has remained unchanged since before 2008. We can sum it up with these three simple words: Too much debt.
The chart below visualizes our predicament plainly. It has always been mathematically impossible (not to mention intellectually bankrupt) to expect to grow one’s debt at twice the rate of one’s income in perpetuity:
All but the most blinkered can rapidly work out the fallacy captured in the above chart. Sooner or later, borrowing at a faster rate than income growth was going to end because it has to. Again, it’s just math. Math that our central planners seem blind to, by the way — all of whom embrace “More debt!” as a solution, not a problem.
Despite being given the opportunity to re-think their strategy in the wake of the 2008 credit crisis, the world’s central banks instead did everything in their considerable power to create conditions for the most rapid period of credit accumulation in all of history:
Lesson not learned!
The chart’s global debt number is only larger now, somewhere well north of $200 trillion here in Q1 2016. But consider, if you will, that entire world had ‘only’ managed to accumulate $87 trillion in total debt by 2000 (this is just debt, mind you, it does not include the larger amount of unfunded liabilities). Yet governments then managed to pour on an additional $57 trillion just between the end of 2007 and the half way point of 2014, just seven and half short years later.
Central Banks need to think ‘outside the box’… in very short order.
And here is the only ‘outside the box’ plan anywhere – that can steer the U.S. clear of this global black hole (note – others should follow)…:
The Leviticus 25 Plan 2017 – $75,000 per U.S. citizen The Leviticus 25 Plan 2017 (1338)