Monday, July 20, 2015

GLOBAL DEBT HAS SET THE STAGE FOR A MASSIVE CRISIS....... A VERY PESKY FACT!

GLOBAL DEBT HAS SET THE STAGE FOR A MASSIVE CRISIS

"Politics is tricky; it cuts both ways. Every time you make a choice, it has unintended consequences." 

                 Stone Gossard

The unintended consequences of the very decisions being made right now at a macro level have set the stage for some particularly catastrophic outcomes. 

The chart below shows the incredible increase in global debt since 2000. The bond market, powered by a powerful combination of kryptonite, dilithium crystals and central bankers who have completely misread the market forces is beginning to crack around the edges.

It's worth remembering that absolutely no nation has ever survived a debt crisis and it's equally important to understand that global debt is now about twice the size of the ENTIRE world economy - something the world has never dealt with before.

Global Debt to GDP

EU-Debt-Nations

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