Sonny Clark
Diamond Member
- Banned
- #1
Can anyone really wrap their heads around a $57Trillion debt? I can't. It's an enormous sum of money, and one that is sure to grow even larger. Can such an astronomical amount ever be fully repaid? Well, that's the current increase in global debt since the end of 2007, which was the beginning of the global financial crisis. It has taken just eight years for the global debt to increase by $57Trillion, not total debt, just increased debt.
Global Debt Has Risen by $57 Trillion Since the Financial Crisis, Which Is Scary -- http://www.nytimes.com/2015/02/06/u...e=MoreInSection&pgtype=article&abt=0002&abg=0
(1) -- Global debt has risen from 269 percent of global economic output to 286 percent.
(2) -- A country with high debt levels can get into economic trouble regardless of whether its debts are most heavily owed by the government (Greece, Italy), households (Spain, the United States), or financial institutions (Ireland, Britain).
(3) -- China has seen its ratio of debt to economic output rise by a whopping 83 percentage points since 2007, according to the calculations by the McKinsey Global Institute, to 217 percent of G.D.P., with increases in government, corporate and household debt.
(4) -- Japan, the most indebted country in the world, at 400 percent of G.D.P. Debt is up 64 percentage points since 2007.
(5) -- Total debt for the real economy is up by 16 percentage points in the United States, to 233 percent of G.D.P., household debt is actually down by 18 percentage points and corporate debt by 2 percentage points. A rise in public debt since 2007, in other words, largely offset declines in private-sector debt.
And perhaps most promising for the United States, our financial institutions have become significantly less leveraged, with financial-sector debt falling by 24 percentage points of G.D.P. by McKinsey’s calculations.
Is astronomical debt the new norm? Will it eventually cause a very harsh and severe global financial crisis, the likes of which has never been seen? Who will the survivors be if such a financial collapse does occur?
Global Debt Has Risen by $57 Trillion Since the Financial Crisis, Which Is Scary -- http://www.nytimes.com/2015/02/06/u...e=MoreInSection&pgtype=article&abt=0002&abg=0
(1) -- Global debt has risen from 269 percent of global economic output to 286 percent.
(2) -- A country with high debt levels can get into economic trouble regardless of whether its debts are most heavily owed by the government (Greece, Italy), households (Spain, the United States), or financial institutions (Ireland, Britain).
(3) -- China has seen its ratio of debt to economic output rise by a whopping 83 percentage points since 2007, according to the calculations by the McKinsey Global Institute, to 217 percent of G.D.P., with increases in government, corporate and household debt.
(4) -- Japan, the most indebted country in the world, at 400 percent of G.D.P. Debt is up 64 percentage points since 2007.
(5) -- Total debt for the real economy is up by 16 percentage points in the United States, to 233 percent of G.D.P., household debt is actually down by 18 percentage points and corporate debt by 2 percentage points. A rise in public debt since 2007, in other words, largely offset declines in private-sector debt.
And perhaps most promising for the United States, our financial institutions have become significantly less leveraged, with financial-sector debt falling by 24 percentage points of G.D.P. by McKinsey’s calculations.
Is astronomical debt the new norm? Will it eventually cause a very harsh and severe global financial crisis, the likes of which has never been seen? Who will the survivors be if such a financial collapse does occur?