Friday, June 30, 2017

Global Debt Is Now A Record $217 Trillion

Reuters: Emerging market borrowing spree lifts global debt to record $217 trillion -IIF

Global debt levels have surged to a record $217 trillion, driven by a $3 trillion borrowing spree in the developing world, the Institute of International Finance said, warning of risks to emerging markets from short-term debt repayments.

The IIF, one of the most authoritative trackers of capital flows, said in a note late on Tuesday that global debt amounted to 327 percent of the world's annual economic output (GDP) by the first quarter of 2017 and the rise was driven principally by emerging market borrowing.

While advanced economies continued to deleverage, cutting total public and private debt by over $2 trillion in the past year, the report found total debt in developing countries had risen by $3 trillion to $56 trillion.

Read more ....

Update #1: Global Debt Hits A New Record High Of $217 Trillion; 327% Of GDP (Zero Hedge)
Update #2: World’s debt over three times greater than economic output (RT)

WNU Editor: This will not end well.


Anonymous said...

Up to this moment I am still confused and please forgive me for this ignorance. Debt to whom? Is there someone or somebody from the other end that benefits/earned from these debts?

TWN said...

There is a solution to debt, it was done once before when the King of France and the Pope took out the Knights Templar, who at the time fulfilled the same role as our current crop of Bankers, they arrested all the Knights and Tortured and Executed them and the debt was wiped out, looks like a good solution to today's current debt problem.

Unknown said...

In the game of Monopoly you are allowed to take out a loan from the bank whom as a somewhat silent entity will foot your risk as your next roll comes around. They get paid first if you find yourself on an opponents property and don't have enough cash.
Today the banks are the US Federal Reserve, the International Monetary Fund, and the new Chinese Monetary Fund. And then you can also borrow from the other players in the game if the so choose. This is how America survives. We sell debt notes every month. Most of it is owned by the Chinese government. 15 Trillion? Anyway it creates another dynamic in the game because the player you borrow from as an interest in seeing that you stay in the game.
Fortunately for America we have a President who is a master at this game. Truely one of the best.
I wonder, if push came to shove with the Chinese would he trade some real estate for a reduction in debt ? Say, for instance, sell Hawaii to the Japanese in exchange for having them make the monthly interest payments on our Chinese debt for twenty years. The Japanese own most of Hawaii anyway.