Soaring Global Debt – The Reality Check in Numbers

The fact that global debt is growing throughout the world is widely acknowledged and well documented. However, when faced with the numbers, the magnitude of the problem is still quite shocking to read. An article last week in Washington’s blog gives us a stark and timely reminder of those facts. The volatile geo-political environment we are entering into, coupled with this growth-stifling debt, makes for a dangerous economic combination.

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[Source: Forbes Business/Statista]

“The debt to GDP ratio for the entire world is 286%. In other words, global debt is almost 3 times the size of the world economy. Both public and private debt are exploding and – despite what mainstream economists think – 141 years of history shows that excessive private debt can cause depressions”.

These global debt figures cannot be ignored. Indeed, many erudite economic commentators have been highlighting the reckless monetary policies being pursued by governments around the world that is feeding our debt crisis.

“The underlying cause of this debt glut is the $12 trillion of free or cheap money created by central banks since 2009, combined with near-zero interest rates. When the real price of money is close to zero, people borrow and worry about the consequences later.” Paul Mason (See: “Apocalypse Now: Has Next Giant Financial Crash Already Begun?”)

Similiarly, Jeremy Warner’s recent warnings about our imminent slide into fiscal crisis in “Europe is sliding towards the abyss, and the terrorists know it” reminds us of the vast expense of going to war. A decision that has very long-term repercussions economically and is a situation over which it would appear we have little or no control over, if the threat of terrorism is to be contained.

“Indeed, not only does war lead to debt, but high levels of debt lead to more war.”

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DAILY PRICES
Today’s Gold Prices: USD 1068.35, EUR 1005.90 and GBP 705.31 per ounce.
Friday’s Gold Prices: USD 1085.15 , EUR 1014.80 and GBP 709.26 per ounce.
(LBMA AM)

Gold in USD – 5 Years

Gold closed down $4.80 on Friday to $1077.20 – a loss of 0.44% for the week. Silver was down $0.12 to $14.15, a loss of 0.56% for the week. Platinum lost $4 to $849.

IMPORTANT NEWS

Gold extends losses on US rate hike view, stronger dollar – Reuters
Gold ends lower, logs fifth weekly loss in a row – MarketWatch
Copper Slumps Below $4,500, Nickel Plunges 5% as Metals Slide – Bloomberg
Gold Drops on Outlook for Rates as Silver Slumps to Six-Year Low – Bloomberg
Hedge Funds Are Back to Bearish on Gold as Price Slump Deepens – Bloomberg

IMPORTANT ANALYSIS

The Economic Impact of Evil – Goldseek
“It’s All A Lie” – Eric Sprott Slams Massive Monetary Metals Manipulation – ZeroHedge.com
Paris attacks: global stock markets braced for sell-off – The Telegraph
An Essay Considering the Current Monetary Orthodoxy and Gold – 24hgold.com
SHANGHAI vs COMEX: Opposite Moves In Silver Inventories – Silverseek.com

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