TSXV:PEM.P - Post by User
Comment by
megabidon Jan 06, 2013 4:55pm
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Post# 20803565
RE: RE: New Year.....
RE: RE: New Year..... World is totally broke, with over $200 trillion of debt......
Monday, 29 October 2012 00:00 Matthew Sammut
Why do we believe that deflation and de-leveraging is an inevitable trend moving forward? Simple debt is out of control and if we do not reverse the trend, bankruptcies will run rampant....
Total global debt is now over $200 trillion, that is over 300% debt to GDP ratio. We live in unprecedented times. On top of the debt, Central Banks hold over $25 trillion on their balance sheets that has been injected into world economies. This is a fiscal and monetary nightmare. The is not sustainable and the end result will be painful.......
As you can see from the chart, total debt has steadily increased from 2002 where it was $80 trillion to current levels which is over $200 trillion and continuing to grow.
The financial crisis of 2008 was a warning and the next will potentially be much larger as Central Banks have created monies and monetized debt at unprecedented levels. At the same time, government debts are out of control and continue to grow worldwide.
The growth rate of over 11% per year is unprecedented. It is the only thing that has held up the world to this point but unfortunately is just delaying an inevitable.