For the last two months, we have been going through a global health problem and an economic crisis at the same time. many people alive today have never seen anything like this because right now many economies are coming to an halt and what is materializing in our eyes will be bigger than the great depression. This will end up being the most severe economic collapse in the history of the world. The stock market is already crashing at a pace that has not been seen in recent years. This has been so severe to a point where trading had to be halted several times in the last two weeks. The real estate industry is also at the verge of collapsing and this time it the crash will be bigger than what we had back in the 2008 financial meltdown. At the same time millions of Americans are losing their jobs and when all this is factored into the current economic turmoil, we have a perfect economic bomb that is about to blow up in our faces. This is just the beginning of another great depression!
If you were worried about the debt of U.S.A then hold on to your heart because the figure for global debt is even more alarming. In a report issued by the Institute of International Finance in November last year the global debt hit a new high of over $250 trillion for the first half of 2019! According to the report, China and the US were two of the biggest contributors to global debt. The IIF said the overall number hit $250.9 trillion at the end of this period, and will exceed $255 trillion by the end of 2019.
The report stated,
“China and the U.S. accounted for over 60% of the increase.With few signs of slowdown in the pace of debt accumulation, we estimate that global debt will surpass $255 trillion this year,” the IIF said in the report.
The graph shown above shows the accumulation of global debt, it was around $100 trillion in 1999 and 2 decades later it is close to $300 trillion. Rising debt across the world has been a big concern for investors and has also been flagged as the next breaking point by a number of economists. Record-low interest rates make it extremely easy for corporates and sovereigns to borrow more money.
The IMF also warned at the end of 2019 that almost 40%, or around $19 trillion, of the corporate debt in major economies such as the U.S., China, Japan, Germany, Britain, France, Italy and Spain was at risk of default in the event of another global economic downturn.
The IIF cites the deepening of global bond markets as the reason for the rise in debt levels. The global bond markets increased from $87 trillion in 2009 to over $115 trillion in mid-2019.
The coming economic collapse will be caused by rising debt levels. As the U.S debt tops $23 trillion dollar, the overheated economy is indicating the upcoming stock market crash that will make the 2008 financial crisis look small in comparison.
In this video, we will look at how the debt of United States has reached $23 trillion dollar in less than a century and how the rapidly rising debt levels have all the potential to be the trigger for the next big economic collapse. In order to understand the next dollar collapse, we need to understand the reasons that have caused economic collapse in the past, most importantly the stock market crash of 2008 because it is the closest example we have got of a financial crisis caused by modern day economic principles and financial products.
One of the major causes of the 2008 stock market crash was the default of sub prime mortgages, the housing sector collapsed and that triggered a chain reaction that quickly took down major financial institutions. It has been almost a decade since 2008 and global debt levels have sky rocketed, the debt of U.S has grown at the rate of almost $1 trillion dollar in the last few years and this no longer seems like a sustainable model to run the economy.
However in order to try and make some preventive and corrective actions to save the U.S economy, we need to understand the cause of the problem first and this video explains exactly how and why the U.S debt has risen so much that it has become the monster that will take this whole system down with it with a dollar collapse.
It is official now, the United States national debt has hit the 23 trillion dollar milestone, that’s twenty-three with twelve zeros after.
That’s a pretty staggering figure — $23 trillion dollars in debt and climbing every second of every day. And in order to give you an idea, that is basically every taxpayer is in debt for $186.576 dollars. And if you were to break it down evenly across every citizen in the United States including those who don’t pay taxes, every United States citizen is $69.735 dollars in debt. And the debt to gross domestic product ratio is now a 106.6 percent. That is very significant; for that ratio to be over a hundred percent, it means that it’s above and beyond 100 percent would be an equal right to the gross domestic product, but it’s now above it by six-point six percent. Unfortunately, the economic collapse always arrives eventually, and our future is looking extremely bleak at the moment. And as the argument goes, the more the debt spirals out of control, the more you’re going to have inflation, the more you’re going to have undisciplined frivolous spending. So a lot of different people will have a lot of different opinions when it comes to this subject, the more and more this national debt figure climbs. And as you know, nobody’s really doing anything to curtail it, not the FED, not the president, nobody.