No end in sight to world's rising debt ($244 trillion, 318% of global GDP)

No end in sight to world's rising debt

Last year, the world's debt rose to $244 trillion, or 318% of global GDP, the Institute of International Finance (IIF) found.

As a planet, we are $244 trillion in debt, 318% of global GDP. This debt will never be repaid.

The world is now "pushing at the boundaries of comfortably sustainable debt,"

I would agree with that... but it just keeps increasing. Even in economic "good" times:

Why it matters: In times of economic strength countries have traditionally reduced their debt, seeking balanced budgets and a safety net for the future. But over the past few years the world's largest economies have done just the opposite.

*The U.S. added close to $2 trillion in fiscal stimulus to its debt, with increased spending and a massive tax cut, in 2017.

*The euro zone recently ended $2.5 trillion in monetary stimulus, though European Central Bank head Mario Draghi suggested that end may be temporary.

*Japan just approved an all-time-high $860 billion budget in addition to $3.5 trillion in monetary stimulus from the Bank of Japan.

What about emerging markets?

Making matters worse: Emerging economies also have borrowed at an unprecedented rate and at a time when global interest rates are rising and the dollar has strengthened, meaning the loans will cost more to pay back.

*Gibbs and IIF's Emre Tiftik tell Axios that poorer countries in Africa and the Middle East that have borrowed heavily — more than 25% of guaranteed bilateral credit now comes from China, up from less than 1% in 2007 — are some of the institute's biggest worries.

As an aside... I'm glad this article discussed China being a creditor. In my financial research over the past year, I've been reading about how China has been getting other countries into debt (that they know the country will not be able to afford). What happens is the country will default, and China will take a port, land, resources, etc. as a result (ever read "Confessions of an Economic Hitman"? It's just like that). The US has been notorious for doing this in the past as well. If you want to learn more about China's "debt trap" tactics, here's a great article that explains what is happening: Eight countries in danger of falling into China's "debt trap"

Back to the main topic at hand though... the global unsustainable debt problem. What do we expect to see as the next "crack" in the system? Defaults? Larger-scale wars? Currency collapse/devaluation?

I think on an individual/household level, everyone should try their best to live within their means, get out of debt, learn practical skills and how to produce, survive off the land around you, and learn to reduce/eliminate any waste in your current lifestyle.

I've love to hear from you guys. How can one prepare? What do you think about the global debt problem?

a reply to: FamCore

The debt can never be repaid by its' very nature. The money simply does not exist.

The Federal Reserve prints $1000 and lends it out at 5% interest. The only way to repay the debt it is to print more money, thereby increasing the debt even further.

Simple and effective. Now back to work!

Proves how crooked the financial systems are. A handful of people are making up money and charging people to use it.

a reply to: roadgravel
a reply to: LightSpeedDriver

It's like a not-so-fun game of musical chairs... so what happens when the music stops?

I'll be a bit more specific with my question:

What happens to the debt, the government, and the individual when it's time to collect and the money isn't there?

give man a gun,he robs bank,give man bank,he robes the world

a reply to: FamCore

I would guess that they will force another financial crisis. Usually creditors are the first vultures to arrive when things go south, especially when billions of dollars are involved. Quantitative easing, tightening and bailouts, to the the printing of more money are probably the most used tactics recently.

Time will tell but we the people will be screwed again.

The biggest problem the world's has is understanding the fiat financial system, and that it's the sweat equity the systems uses to enslave people into debt, so they work harder, and longer to payback money that never existed in the first place.

If people really understood how volatile it all was, they'd sit home for 6 months, do research, and empower themselves for a better world of future change, but the illusion of make money, pay debt, pay bills, future happiness, and bling keeps them in a state of flux.

What does it take to change the essence of a fearful, ego-driven society?

Who is this enormous debt "owed" to? btw...it's not real money, just 1s and 0s in some Swiss data bank.

a reply to: FamCore

All I can repeat is "We are doing it all wrong".

originally posted by: olaru12
Who is this enormous debt "owed" to? btw...it's not real money, just 1s and 0s in some Swiss data bank.

International bankers and institutions like the IMF. People who say "it's not actually owed to anyone" are flat out wrong

There is no chance of them ever having a jubilee every 49 years www.biblica.com... .
just like every 72 years America goes broke again and wars kick off to ease the burden of over population , rinse and repeat

originally posted by: FamCore

International bankers and institutions like the IMF. People who say "it's not actually owed to anyone" are flat out wrong

Absolutely!

That's how the system works by indenturing people, businesses, and governments into signing secured loans, with money that comes from no-where. People can get angry about it, but it's a brilliant system that enslaves.

Here's a great short video, with someone I admire in it ( Edward G. Griffin), exposing the world banking systems for what it is.

a reply to: M4nWithNoN4meIt's protection money owed to the Decepticons.

originally posted by: FamCore

originally posted by: olaru12
Who is this enormous debt "owed" to? btw...it's not real money, just 1s and 0s in some Swiss data bank.

International bankers and institutions like the IMF. People who say "it's not actually owed to anyone" are flat out wrong

It may be owed but how are they going to collect the debt; send Vito around with some muscle?

originally posted by: FamCore

As a planet, we are $244 trillion in debt, 318% of global GDP. This debt will never be repaid.

There is no sense to be made of those numbers.
It defies logic.
Our children will not be able to afford land and homes, in the communities built by their forefathers' sweat.
Something is horribly wrong, and folks don't want to investigate it.

a reply to: FamCore

We need a wall to fix the flow of debt, it won't stop the debt but it will slow it down a little bit.

It's certainly looking like collection day will be doomsday....

Just wipe the slate clean and start over. Like a new game of global poker.

The way you wipe out debt is war.

Take out the banking system, make it your own.

Governments are basically big gangs in suits controlled by the bankers.

originally posted by: booyakasha
The way you wipe out debt is war.

Take out the banking system, make it your own.

Governments are basically big gangs in suits controlled by the bankers.

Oh don't be silly, the government genuinely care about its people, these leaders are democratically elected by the people for the people, corporations serve the government for the benefit of the people period. It's ridiculous to think that somehow families managed to gain enough wealth to influence the world and its even sillyer to think these wealthy families might disagree with each other and god forbid steal from each other and fight each other using we the people as peons, no sir just not possible we plebs are immune to this kind of control...