Thursday, November 9, 2018 In recent weeks the world has been focused on the economic and social crisis in Greece, but the truth is that Greece represents only a small fraction of a large bomb global debt that threatens to explode at any moment. Currently, there are 24 countries facing a debt crisis in the making , and there are 14 more rapidly heading in the same direction. At this time, the debt-GDP ratio for the whole planet is 286%, and worldwide there are about 200 trillion dollars of debt in the books of accounts. That becomes about $ 28,000 of debt for every man, woman and child on the planet.
And since nearly half of the world's population lives on less than $ 10 a day, there is no way all this debt can never be paid.
The only "solution" to the problem found our "great political and economic leaders" is to continue to accumulate debt and more debt to go making immediate payments.
According to a new report by the Jubilee Debt Campaign, there are now 24 countries around the world face a debt crisis in the making
Armenia
Belize
Costa Rica
Croatia
Cyprus
Dominican Republic
El Salvador
Gambia
Greece
Grenada
Ireland
Jamaica
Lebanon
Macedonia
Marshall Islands
Montenegro
Portugal
Spain
Sri Lanka
St. Vincent and the Grenadines
Tunisia
Ukraine
Sudan
Zimbabwe
And there are 14 other nations that are right on the edge of this crisis ...
Bhutan
Cape Verde
Dominica
Ethiopia
Ghana
Laos
Mauritania
Mongolia
Mozambique
Samoa
Sao Tome and Principe
Senegal
Tanzania
Uganda
What It should do about it ?
Are the "rich" countries should rescue all indebted?
Well, the truth is that many of the "rich" countries are the worst offenders, with the largest of all debt. Just consider the United States. The US national debt has more than doubled since 2007, and at this point has become so great that it is mathematically impossible to pay. Europe is in a similar situation. Members of the eurozone are trying to cobble together a "rescue package" for Greece, but the truth is that most of them will soon need bailouts as well. Debt has soared since 2012. The debt of Spain regarding its GDP has increased from 69% to 98%. Of Italy it rose from 116% to 132% and France has risen from 85% to 95%.
In addition to Spain, Italy and France, do not forget to Belgium (106% of debt to GDP), Ireland (109%) and Portugal (130%).
Once the dominoes start to fall, the consequences for the global financial system massively leveraged, will be absolutely catastrophic ...
Spain has more than 1 trillion dollars in outstanding and Italy has 2.6 trillion debt. These bonds support tens of millions of dollars in derivative transactions valued in euros. A debt would trigger a systemic failure in Europe.
EU banks as a whole are leveraged at 26-to-1. At these levels of leverage, even a 4% drop in asset prices erases all your capital. And any haircut of Greek, Spanish, Italian and French debt would be much more than 4%.
In Asia, things are really bad too.
According to Bloomberg, debt levels in China have risen to record levels before ...
"While the economic expansion of China exceeded analyst forecasts in the second quarter, the levels of the country 's debt increased at an even faster rate .
Outstanding loans to businesses and households stood at a record 207% of gross domestic product by the end of June, compared with 125% percent in 2008, according to data compiled by Bloomberg "
And remember that even the debt is included of the government. When we consider all forms of debt, the total debt to GDP of China is about 300%.
In Japan, things are even worse. Public debt to GDP in Japan are now at a staggering 230%. It has become so high that it is hard to believe that could be true. At some point there will be an implosion in Japan that will surprise the world.
Of course the same could be said of the entire planet and everyone knows this is not going to end well.
"No major nation in the West can pay its debts. The same can apply to Japan and most emerging markets. Europe is a failed experiment, China is a massive bubble in terms of their stock markets, real estate markets and the banking system in the shade. Japan is also a hopeless case and the US It is the most indebted country in the world and has lived beyond their means for more than 50 years.
So let's see bend those 200 trillion of debt and implosionarán 1500 trillion derivatives.
That would lead to the destruction of greatest wealth of history and bonds and property markets fall, at least between 75% and 95%. World trade will shrink dramatically and also we will see massive hardship around the world. "
Hopefully Egon von Greyerz predictions are exaggerated and that nothing warning is met, but the truth and indisputable is that the overall debt of all countries of the world, is absolutely priceless and is out of control.
Perhaps, Greece, is not just a tiny taste of what awaits us all ...
legnalenja at 19:57
