The Total Amount Of Debt In The World Just Hit A Record $152,000,000,000,000 (152 Trillion)

globe-on-the-brink-of-disaster-public-domainIf anyone ever asks you how much debt there is in the world, now you will know the answer.  According to the IMF, the total amount of debt around the globe has now hit a staggering 152 trillion dollars.  That is an amount of money that is almost unimaginable, and the IMF says that it is equivalent to 225 percent of global GDP.  It is the biggest debt bubble in the history of the planet, and it is rising at an extremely alarming pace.  Experts all over the world agree that when this debt bubble finally bursts, it is going to create an economic crisis on a scale that humanity has never seen before.

When I first saw this number I was absolutely astounded at how reckless we all have become, and I was also amazed that there was hardly anything about this announcement in the mainstream media in the United States.  The following excerpt comes from a story in a major British news source

The International Monetary Fund has urged governments to take action to tackle a record $152tn debt mountain before it triggers a fresh global financial and economic crisis.

Warning that debt levels were not just high but rising, the IMF said it was vital to intervene early in order to mitigate the risks of a repeat of the damaging events that began with the collapse of the US sub-prime housing bubble almost a decade ago.

It said that new research in its half-yearly fiscal monitor covering 113 countries had shown that debt was currently 225% of global GDP, with the private sector responsible for two-thirds of the total.

Right now the mainstream media in the United States is so obsessed with Trump and Clinton that almost every other important story is pushed to the side, but it boggles my mind how this cannot be major front page news.

When we borrow money, consumption is transferred from the future to the present.  For example, if you put a 70 inch television on your credit card today, the quality of your lifestyle will immediately go up, but you won’t have that money to spend at some point in the future.  In fact, you are ultimately going to pay back significantly more money than you originally spent for the television.

So when we go into debt, we are literally destroying the future one dollar at a time.

On a national scale, what we are doing to our children, our grandchildren and all future generations of Americans is beyond criminal.  Thomas Jefferson and other founding fathers warned that government debt was simply thievery from future generations, and they were exactly right.  If future generations get the chance, they will look back and curse us for what we have done to them.

Earlier today I looked up our national debt, and it is currently sitting at $19,688,773,606,117.54.  That means that Barack Obama has officially become “the 9 trillion dollar man”.

When Barack Obama entered the White House, the U.S. government was 10.6 trillion dollars in debt, and now we are 19.6 trillion dollars in debt, and there is a very good chance that we could hit 20 trillion dollars by the time he leaves the White House on January 20th, 2017.

In a just society, the politicians that have done this to future generations of Americans would be going to jail, but instead we put them up on pedestals.

It is truly hard to grasp how much money “a trillion dollars” represents.

For instance, if you were alive when Jesus Christ was born, and you had spent a million dollars every single day since that time, you still would not have spent a trillion dollars by now.

Since Barack Obama entered the White House, we have been stealing more than 100 million dollars from future generations of Americans every single hour of every single day, and as Obama’s second term draws to a close the pace of that theft is accelerating according to Simon Black

In fact, for the 2016 fiscal year that ends in just ten more days, the US government’s debt growth of $1.36 trillion is on track to be the third biggest annual increase ever.

The only two years in all of US history that posted higher US debt growth were 2010 and 2011– the peak of the financial crisis.

Even more acutely, last month the US federal debt grew by $151.5 billion.

Not counting the financial crisis, and a few anomalous months following a debt ceiling reset, August 2016 was the single biggest expansion of US debt EVER.

How could we do this?

And I know that I have pointed the finger at Barack Obama a lot in this article, but the truth is that Republicans are highly to blame as well.

The Tea Party revolution of 2010 gave the Republicans control of the House of Representatives, and since that time they have also gained control of the Senate.  Without Republican approval, Barack Obama would not be able to spend a single penny.  The American people were counting on the Republicans to put a lid on the wild spending of Barack Obama and the Democrats, and the Republicans in Congress have completely failed.

Nobody wants to end the party.  Because without a doubt, cutting back on our wild borrowing and spending would seriously damage the economy in the present, and nobody wants to be responsible for that.

So now the only thing to do is to keep the party going for as long as possible until it ends in a horrible, fiery crash.

Overall, the total amount of debt in the United States is now roughly equivalent to 350 percent of U.S. GDP, and a day of reckoning is rapidly approaching.  Just consider what Charles Schwab’s chief investment strategist, Liz Ann Sonders, recently told Business Insider

Sonders noted that total debt — public, private, nonfinancial, and financial — had become 350% of gross domestic product, and that is already causing problems for the economy.

The question I get all the time is: When are we going to hit the wall? When are we going to hit the debt wall?” Sonders said. “I think we hit the debt wall in ’08, which unleashed a big round one of what I think will be a rolling set of crises — and not just in the US but globally.

And I very much agree with her.

We definitely “hit a wall” in 2008, but it was just “round one” of our problems.

The coming rounds are going to be even more painful, but most Americans don’t understand this.

Most Americans seem to believe that our debt-fueled standard of living can be sustained indefinitely and that there is nothing to be concerned about.

Unfortunately, the laws of economics cannot be defied forever, and eventually the American people are going to experience economic and financial pain on a scale that we have never seen before in our entire history.

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  • tom

    “If you owe your bank a hundred pounds, you have a problem. But if you owe a million, it has”.
    – John Maynard Keynes

    So… if you owe the bank $152 trillion – who has the problem?

    • Silverado

      All of us…

  • tom

    Although if you look at it proportionately – which is the right way to look at large numbers – it’s not so enormous. Only $22,000 or so for every living human being. Of course, most living human beings don’t own $22,000 (or even $1,000)…

  • Feudal Peasant

    Some years ago while playing monopoly with my wife she ended up owing me 20,000. I told her how she could pay me. We are now separated and she still owes me the 20.000.

  • David S

    David Stockman, in a recent “town hall” discussion, commented on the massive debt/asset bubble hanging over the head of America. What he said in short is that the primary folks who “own” this debt and will be devastated by the collapse of these asset prices will be the 1% who own all the financial instruments. Virtually NONE of this debt is real so when it vanishes when it all collapses, nothing REAL will be truly lost. It will go to “debt heaven” as he put it. I mean its not as though we are talking about gold or other assets that are truly owed to people (yes, there is SOME of that in REAL commodities, etc.). Debt is being used as collateral for creating more debt and so on and so on and so on. Indeed paper “worth” will vanish overnight and this will devastate millions. Most certainly there will be real pain, even among those in the 99% while things are sorted out and something sustainable gets off the ground, but the coming collapse and bursting of this bubble will not see the vanishing of that which has always been real. It is something to think about. The “power” all these people have over us and everyone on the planet comes from their “alleged” wealth. As it is all based in debt, when the debt cannot be repaid and the bubble bursts, where will their power over us come from? It will vanish as quickly as the invisible air that kept the bubble inflated. Because in truth, they could work everyone 24/7 for our entire lives and this amount of money could NEVER be repaid. So the vast majority will simply vanish – hopefully never to be seen again.

    • Silverado

      That isn’t real wealth. Real wealth can’t be printed or folded and is measured with a scale and comes in grams, ounces and kilos. Not govt approved and specially inked paper or worse yet, virtual digits credited to one’s account, based on debt, fraud, lies and illegal and Unconstitutional banking schemes perpetuated by those higher ups both in govt and finance that should (and do) know better.

    • teri

      Oddly, he [Stockman] also just said in a Fox News interview, that SS and “all the entitlements” should be eliminated [i.e., no longer funded and should cease to exist] because they are “the cause of the debt”, and that regulations and taxes on businesses were the job-killers. He said that the only allowable Federal taxation should be at the point of purchase [i.e., increased sales taxes] and on imports. Which would decimate the poor and middle classes, but whatever.

      Not sure which statements Stockman actually believes; the ones you heard or the ones I did. Maybe it depends on the day of the week and to whom he is speaking.

      • David S

        Well, SS, Medicare, and Medicare Part D ARE indeed the greatest portion of the budget, are most certainly unconstitutional, and are unsustainable. They most certainly should be eliminated (but I would prefer Ron Paul’s approach of shutting down the overseas empire and funding a transition away from these programs by allowing younger folks the ability to completely opt out, means testing so the wealthy are not collecting these entitlement dollars, and allowing those with no other means to remain receiving). As for point of purchase and import taxation, there is no implicit requirement that sales taxes go up. Stockman also supports massive cuts in government spending. And ending SS, Medicare, etc. would mean an automatic 15% potential increase in salary for everyone who is employed (your 7.5% and the 7.5% your employer pays). Bottom line is that when this debt bubble collapses, the government welfare scheme will collapse along with it so the poor and middle class that depends on government theft or borrowing for their welfare will be decimated anyway. You simply can’t support the current IMMORAL system and actually think it can go on this way forever. The only MORAL stand is to work towards ending it and restoring private property rights, massively limited government (if any at all), and personal responsibility, private charity, and business freedom.