As the United States embarks upon what should be an interesting debt ceiling debate, a comprehensive report suggests that the total global debt is inching towards $200 trillion, and it just keeps ballooning without any respite in sight.
McKinsey concluded in a report that the planet has added close to $60 trillion since the economic collapse to a total of $200 trillion. This is approximately three times the size of the entire global economy, and your share is about $20,000.
What makes the report interesting is that these numbers are from 2014. Therefore, we do not have a firm number of how much debt has been added in the last two years.
You shouldn’t expect governments to rein in the debt anytime soon. As a growing number of countries are taking advantage of 50-, 70- and 100-year bonds because of historically low interest rates, politicians are just pulling out the piece of plastic.
U.S. Treasury Secretary Steven Mnuchin recently said that the federal government is considering long-term bonds (SEE: Trump administration studying 50- and 100-year bonds: Mnuchin). This means that you can expect more spending, more debt and an increase to the debt ceiling.
This is what governments do best: kick the can down the road and leave future generations to clean up the mess.
Cleaning up the total collapse will take longer than it took to get us here.
Government, the willing accomplace, is never willing to “clean up the mess” because then it would have to admit to creating it in the first place.
The People will be the real losers, unless they are smart enough to see this coming and take steps to prepare for it.
Most I talk to are not, they will become the willing slaves.
It is all funny money anyway, created out of thin air by the bankers. When the collapse happens everything should be reset to 1950’s wages and prices. The rich will be hurt way more than the poor, because the poor do not have anything anyway, they will be able to start over much easier.