Double Bubble Trouble for USofA – $200Trillion Debt & $1.5Quadrillion Implosion Coming

Michael Snyder
Wed, July 22, 2015
Subject; Bankruptcy of the Planet Accelerates
www.MorningLiberty.com

The Bankruptcy Of The Planet Accelerates – 24 Nations Are Currently Facing A Debt
Crisis

There has been so much attention on
Greece in recent weeks, but the truth is that Greece represents only a very tiny
fraction of an unprecedented global debt bomb which threatens to explode at any
moment. As you are about to see, there are 24 nations that are currently facing a
full-blown debt crisis, and there are 14 more that are rapidly heading toward
one. Right now, the debt to GDP ratio for the entire planet is up to an all-time
record high of 286 percent, and globally there is approximately 200 TRILLION
dollars of debt on the books. That breaks down to about $28,000 of debt for every
man, woman and child on the entire planet. And since close to half of the
population of the world lives on less than 10 dollars a day, there is no way that
all of this debt can ever be repaid. The only “solution” under our current system
is to kick the can down the road for as long as we can until this colossal debt
pyramid finally collapses in upon itself.As we are seeing in Greece, you can
eventually accumulate so much debt that there is literally no way out. The other
European nations are attempting to find a way to give Greece a third bailout, but
that is like paying one credit card with another credit card because virtually
everyone in Europe is absolutely drowning in debt.Even if some “permanent
solution” could be crafted for Greece, that would only solve a very small fraction
of the overall problem that we are facing. The nations of the world have never
been in this much debt before, and it gets worse with each passing day.According
to a new report from the Jubilee Debt Campaign, there are currently 24 countries
in the world that are facing a full-blown debt crisis…■ Armenia■ Belize■ Costa
Rica■ Croatia■ Cyprus■ Dominican Republic■ El Salvador■ The Gambia■ Greece■
Grenada■ Ireland■ Jamaica■ Lebanon■ Macedonia■ Marshall Islands■ Montenegro■
Portugal■ Spain■ Sri Lanka■ St Vincent and the Grenadines■ Tunisia■ Ukraine■
Sudan■ ZimbabweAnd there are another 14 nations that are right on the verge of
one…■ Bhutan■ Cape Verde■ Dominica■ Ethiopia■ Ghana■ Laos■ Mauritania■ Mongolia■
Mozambique■ Samoa■ Sao Tome e Principe■ Senegal■ Tanzania■ UgandaSo what should be
done about this?Should we have the “wealthy” countries bail all of them out?Well,
the truth is that the “wealthy” countries are some of the biggest debt offenders
of all. Just consider the United States. Our national debt has more than doubled
since 2007, and at this point it has gotten so large that it is mathematically
impossible to pay it off.Europe is in similar shape. Members of the eurozone are
trying to cobble together a “bailout package” for Greece, but the truth is that
most of them will soon need bailouts too…
All of those countries will come knocking asking for help at some point. The fact is
that their Debt to GDP levels have soared since the EU nearly collapsed in
2012.Spain’s Debt to GDP has risen from 69% to 98%. Italy’s Debt to GDP has risen
from 116% to 132%. France’s has risen from 85% to 95%.
In addition to Spain, Italy and France, let us not forget Belgium (106 percent debt
to GDP), Ireland (109 debt to GDP) and Portugal (130 debt to GDP).Once all of these
dominoes start falling, the consequences for our massively overleveraged global
financial system will be absolutely catastrophic…
Spain has over $1.0 trillion in debt outstanding… and Italy has €2.6 trillion. These
bonds are backstopping tens of trillions of Euros’ worth of derivatives trades. A
haircut or debt forgiveness for them would trigger systemic failure in Europe. EU
banks as a whole are leveraged at 26-to-1. At these leverage levels, even a 4% drop
in asset prices wipes out ALL of your capital. And any haircut of Greek, Spanish,
Italian and French debt would be a lot more than 4%.
Things in Asia look quite ominous as well.According to Bloomberg, debt levels in
China have risen to levels never recorded before…
While China’s economic expansion beat analysts’ forecasts in the second quarter, the
country’s debt levels increased at an even faster pace.Outstanding loans for
companies and households stood at a record 207 percent of gross domestic product at
the end of June, up from 125 percent in 2008, data compiled by Bloomberg show.
And remember, that doesn’t even include government debt. When you throw all forms
of debt into the mix, the overall debt to GDP number for China is rapidly
approaching 300 percent.In Japan, things are even worse. The government debt to GDP
ratio in Japan is now up to an astounding 230 percent. That number has gotten so
high that it is hard to believe that it could possibly be true. At some point an
implosion is coming in Japan which is going to shock the world.Of course the same
thing could be said about the entire planet. Yes, national governments and central
banks have been attempting to kick the can down the road for as long as possible,
but everyone knows that this is not going to end well.And when things do really
start falling apart, it will be unlike anything that we have ever seen before. Just
consider what Egon von Greyerz recently told King World News…
Eric, there are now more problem areas in the world, rather than stable situations.
No major nation in the West can repay its debts. The same is true for Japan and most
of the emerging markets. Europe is a failed experiment for socialism and deficit
spending. China is a massive bubble, in terms of its stock markets, property markets
and shadow banking system. Japan is also a basket case and the U.S. is the most
indebted country in the world and has lived above its means for over 50 years.So we
will see twin $200 trillion debt and $1.5 quadrillion derivatives implosions. That
will lead to the most historic wealth destruction ever in global stock, with bond
and property markets declining at least 75 – 95 percent. World trade will also
contract dramatically and we will see massive hardship across the globe.
So what do you think is coming, and how bad will things ultimately get once this
global debt crisis finally spins totally out of control? The Bankruptcy Of The
Planet Accelerates – 24 Nations Are Currently Facing A Debt Crisis


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