Total global debt as share of GDP = 286%… gonna be really hard to service it without more growth. Yellen & Bernanke’s US government ponzi bond bubble debt monetization aka NO EXIT!
– McKinsey Institute says global debt is $199 trillion and unsustainable
– Total global debt is $27,204 for every person living today
– All major economies have “higher levels of borrowing relative to GDP” than in 2007
– 3 risk areas – rising Chinese debt, government and household debt
– Debt report ignores U.S. unfunded liabilities of over $100 trillion
– Major cause of risky, unprecedented debt levels – QE and ultra loose monetary policies not acknowledged
– Risk of new global financial crisis – wealth taxes, currency wars and devaluations and bail-ins
Global debt is now in the region of $200 trillion. The McKinsey Global Institute recently published a report highlighting the bloated, unsustainable levels of debt that have been accumulated globally and the huge risks when interest rates begin to rise again.
McKinsey concluded that total global debt was $199 trillion and the little covered report was released in February – 3 months ago – meaning that the figure is likely over $200 trillion. With a global population of 7.3 billion this works out out at over $27,200 of debt for every man, woman and child alive in the world today.
Almost 29% of that debt – $57 trillion – has been accumulated in the relative short period since the financial crisis erupted in 2007 – just 8 years.
This has increased the total debt-to-GDP ratio by 17% and “poses new risks to financial stability and may undermine global economic growth.”
Of the 22 advanced economies every one was found to have higher debt-to-GDP ratios today than they did in 2007. For many, the ratio had grown by more than 50%.
The three major areas for concern according to the report are rising government debt, rising household debt and rising total debt in China – which has increased a staggering four-fold since 2007.
The McKinsey report states bluntly that “government debt is unsustainably high in some countries.”
Government debt has expanded by 25% since the crisis began and much of it stems directly from the crisis.
The report states that for the six of the most highly indebted nations deleveraging has become impossible – at least without “implausibly large increases in real-GDP growth or extremely deep fiscal adjustments.”
— Christian Gagnon (@InEgo_) April 8, 2015
Even Kuroda Is Worried——Abenomics Is Just Perpetual Monetization Of The Public Debt
— Planet Ponzi (@PlanetPonzi) May 12, 2015
An explanation of QE as essentially debt monetization by sovereigns
Starts at 17:10