Global debt

https://twitter.com/JDWealthManager/status/393978455395954688

Have you EVER seen anything more stupifyingly shocking?

Since the US, in particular, came off the Gold Standard (thanks Trickie Dickie Nixon) the amount of debt, globally, has exploded.  You wonder why

a)    House prices are so high

b)    As are the costs of living

c)    Why oil costs so much

d)    Why food costs so much

e)    Why a car costs so much

f)    Why transportation costs so much (… Have you ever bought a commuter ticket into London and said to the ticket seller “How Much?!!! I’ll bet a lot of that goes on your pension?”  No, I haven’t either.  Yet!)

g)    Why governments, households and businesses have soooo much debt?

Now you know.  Because the whole planet is in an ocean of debt.  Of course, the ultra rich are not, as are the ultra prudent.  Who do you think will win in the end?

Those in debt?

Well, as you see in the chart, the meagre small fall in global debt in 2008 did what it did to the global economy.

The sheer scale of debt is the problem as I continue to report.

What happens when borrowing rates rise, if they do?

There will be another crash.  It will be much much bigger than 2008.  That was merely the hors d’oeuvre.  The next one will be the main course.

They ‘saved the world’.  HOW DARE THEY (Clown, Obama, Merkel and the rest of the Fascist Marxists?!!! (You think there’s a practical difference to you and me?)  How dare they say that?  What they did was put us more and more in hock to banksters.

Did I say How Dare They?!!!  (Is Graham Chapman reading this?  Ah. Oh, right.)

The big picture is entirely unchanged and I guess I cannot repeat that enough.

  • The Too Big To Fail banks are even bigger and an even greater threat to global economic stability.
  • China has gone past its Day of Reckoning and, as far as we can see, is riding on Hot Air.
  • At some point the Federal Reserve will lose control of interest rates OR we are ‘Japan’ and rates are to tumble even further and the Depression will not be hidden any longer
  • Etc

Hence, we are in Depression already.  It started with the great unravelling of 2007/08.  It has a long long way to go.

In 1931 they did not know, then, they were in Depression.  They soon did know.

Those who do not wish to see the big picture will be sorry and they are by far the majority.

It is difficult to get a man to understand something, when his salary depends upon his not understanding it!

Upton Sinclair (18781968)

The bankers loaned to the Governments and to the house and business buyers for decades.  Then when there were problems of repayment the bankers advised the Governments to borrow vastly more.  And the Governments took the advice.

Go figure.

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8 Responses to Global debt

  1. Anonymous says:

    fascism and marxism are both crap, but they are profoundly different from each other.

    marxism is simply the study of society or economics using dialectical materialism – class struggle. fascism is corporatism – a blending of state and corporate power, as mussolini said very clearly.

    you should be pleased – the entire public domain is entering private hands…

    • I believe you missed my question: “(You think there’s a practical difference to you and me?) ” The technical difference has no practical value to you and me.

      • Anonymous says:

        at the extreme end, then perhaps not, as communist revolutions (like fascist revolutions) have always depended on bankers to finance them.

        selling everything we collectively own to serco and g4s won’t be any better either. nor will getting communist china to finance social democratic france (through 75% public owned EDF) to build and run our nuclear power with massive prices guarenteed for decades to the french state.

        do you know how much of your poster boy singapore is publicly owned?

        socialism and capitalism are now both DEAD. all of the potentially positive aspects of both systems, free markets, competition, democracy, the right to an education, social justice, fair pay, etc have been laid to waste. we are left with the worst possible aspects of both systems.

        corporatism is the only game left in town, i am afraid.

      • Anonymous says:

        why is libertarianism any different? i have read walter block, von mises, rand (an objectivist, i know – lots of factions, like marxists and trots) and others and it reads like class war for the rich, dickens where the villains are recast as heroes.

        i suppose that narrative is very attractive to the people who fund it, like rockefeller, the kochs, otto habsburg, the fords, etc – the capitalist heroes who conspired to foment a fascist coup to overthrow FDR (foiled by smedley butler – look it up)

        you know that the transhumanist futurist, peter thiel is the main backer of ron paul?

        the ideas you have bought have been sold to you by a very odd person who shares much with the italian futurists of the early 20th century. are you are comfortable with all of this….

  2. nicjdondon says:

    Reblogged this on OmegaHex and commented:
    Some perspective

  3. Of course. It keeps TPTB in the manner to which they have long become accustomed. EU, Govts, banskters, media, military industrial, central bankers etc

    It’ll be far more than merely a lost decade or three. Try loss of liberties and freedoms.
    heading towards Marxism/Fascism
    #bringbackcapitalism I must write a blogpost about that. Oh, I did.

  4. peter farmer says:

    I fear that the powers that be believe that QE is working – for THEM! Hence why developed nations may be heading the same way as Japan. After all, QE is achieving PRIVATE bank deleveraging, higher asset prices AND lower interest costs for Governments – and that’s all that really matters. SOD the rest of us!
    Lost decade? Well we’re 5 years into one already and I see no light at the end of the tunnel. Will this can kicking force us to enter a second lost decade?

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