The fact that global debt is growing throughout the world is widely
acknowledged and well documented. However, when faced with the numbers, the
magnitude of the problem is still quite shocking to read. An article last
week in Washington’s
blog gives us a stark and timely reminder of those facts. The volatile
geo-political environment we are entering into, coupled with this
growth-stifling debt, makes for a dangerous economic combination.
[Click to expand]
[Source: Forbes
Business/Statista]
“The debt to GDP ratio for the entire world is 286%.
In other words, global debt is almost 3 times the size of the world economy.
Both public and private debt are exploding and – despite what mainstream
economists think – 141 years of history shows that excessive private debt can
cause depressions”.
These global debt figures cannot be ignored. Indeed, many erudite economic
commentators have been highlighting the reckless monetary policies being
pursued by governments around the world that is feeding our debt crisis.
“The underlying cause of this debt glut is the $12 trillion of free or
cheap money created by central banks since 2009, combined with near-zero
interest rates. When the real price of money is close to zero, people borrow
and worry about the consequences later.” Paul Mason (See: “Apocalypse
Now: Has Next Giant Financial Crash Already Begun?”)
Similiarly, Jeremy Warner’s recent warnings about our imminent slide into
fiscal crisis in “Europe
is sliding towards the abyss, and the terrorists know it” reminds us of
the vast expense of going to war. A decision that has very long-term
repercussions economically and is a situation over which it would appear we
have little or no control over, if the threat of terrorism is to be contained.
“Indeed, not only does war lead to debt, but high levels of debt lead to
more war.”
Read more on Washington’s blog: “Shocking,
Little-Known Facts About Debt”
Download your guide to Protecting
Your Savings in the Coming Bail-in Era
DAILY PRICES
Today’s Gold Prices: USD 1068.35, EUR 1005.90 and GBP 705.31 per ounce.
Friday’s Gold Prices: USD 1085.15 , EUR 1014.80 and GBP 709.26 per ounce.
(LBMA AM)
Gold in USD – 5 Years
Gold closed down $4.80 on Friday to $1077.20 – a loss of 0.44% for the
week. Silver was down $0.12 to $14.15, a loss of 0.56% for the week. Platinum
lost $4 to $849.
