Global Debt Exceeds $100 Trillion

The Whole World Has Gone Into Debt

Bloomberg reports:

The amount of debt globally has soared more than 40 percent to $100 trillion since the first signs of the financial crisis as governments borrowed to pull their economies out of recession and companies took advantage of record low interest rates, according to the Bank for International Settlements.

Has all that money gone to stimulate the economy?


Virtually none of it has.  Instead, governments chose big banks over their own people.  The huge amount of debt was racked up to bail out the big banks.

Central banks have been engaged in the the “greatest backdoor bailout of all time.”

And yet – as Bloomberg notes – everyone else gets austerity:

Concerned that high debt loads would cause international investors to avoid their markets, many nations resorted to austerity measures of reduced spending and increased taxes, reining in their economies in the process as they tried to restore the fiscal order they abandoned to fight the worldwide recession.

In essence, the elite financial players are manipulating the game so that they get the stimulus … and the little guy gets the austerity.

Indeed, the IMF is recommending “financial repression” of the average person, to plug the giant debt holes created by the bank bailouts.

And – whether or not you like Keynesian stimulus – you should know that governments never really engaged in meaningful stimulus.

But didn’t we have to do this to save the economy after Lehman crashed?

Nope … top economists say we should instead of done what Iceland did:  let the big banks go bust, and use resources instead to help the people.

Proof can be found in the fact that throwing money at the big banks has led to a  “jobless recovery” – a permanent destruction of jobs – which is a redistribution of wealth from the little guy to the big boys. (And see this.)

Indeed, everything the government has been doing since 2008 has made unemployment much worse. And  here and here.

Postscript:  In 2010, economics professor and former Senior Economist for the President’s Council of Economic Advisers Laurence Kotlikoff said that – when unfunded liabilities are taken into account – the fiscal gap for the U.S. alone exceeds $200 trillion:

Based on the CBO’s [Congressional Budget Office’s] data, I calculate a fiscal gap of $202 trillion, which is more than 15 times the official debt.

As of a couple of months ago, Kotlikoff put the figure at $205 trillion.

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  • Henry James Garner

    COMPOUND INTEREST is more devastating than any nuke That’s why Jesus was so upset by the money changers

  • gozounlimited

    Sarah has something to say about that…..

  • Debby

    Trillions, indeed!!
    Those are just numbers made up by the banksters. There’s no such amount in goods on this Planet.
    besides which, THE People NEVER racked up that debt!
    Tptb (but will soon NOT be) just want us to believe We owe them.
    We owe them NOTHING!

  • barbara timperley

    to whom do we owe this to?

    • Name

      A lot of it is owed to other nations but there’s nothing to pay it back with. That’s why the Fed is creating $1TN a year backed by failed investments, because it’s the only way to avoid default. It’s funny really; the Fed started out under the real bills doctrine and worked their way to the fake bills doctrine. The only reason nobody calls them on it is because they’re doing it themselves.

  • Name

    And all this so the most abysmal failures in the history of the world can stay in charge…

  • jadan

    These numbers are meaningless except to express the failure of society to administer and regulate financial affairs. The monetary systems of the west are privately owned and administered. This failure to balance the books is not the failure of governments, but the failure of laissez faire policies of unregulated private capital, over which government has little control. The banks act with impunity in their own interests and governments which are controlled by private capital do not serve the public interest.

    Let’s be clear about where the failure lies. It is not a failure of government. It is the failure of the Fed in this country, and the ECB in Europe. Bankers do not know how to run countries. They destroy countries. The failure of governments is the failure to regulate the privatized monetary systems and operate them in the public interest.

    “Indeed, everything the government has been doing since 2008 has made unemployment much worse. ”

    This is a misleading statement. Government is a captive of the private financial system. It is beholden to private capital for its very existence. In actual fact, government has very limited power to correct unemployment or fund social policy because the money it needs to implement policies must come from private sources. This means that private capital dictates social policy. Private capital OWNS government and uses it to create profits for itself, not the public interest. “Obamacare” is a glaring example of the failure of government to regulate and control private capital in the public interest.

  • Charles Kafka

    i say the earth has to go to war, with the “other” planet we owe this money to.
    or just spend the money, 2 bullets for each international banker, than confiscate their holdings under the baker act.
    instant richest country ever.. ..