Global Debt Hits $184 Trillion and 11.4% of it is From the US: Big Bubble?

[cybersofts]

According to the International Monetary Fund (IMF), the global debt has achieved $184 trillion with $86,000 per person, a figure that is twice larger than the global average income per-capita.

Out of the $184 trillion, The Balance reported that $21 trillion comes from the U.S., making up for around 11.4 percent of the global debt.



Source: USDebtClock.org


With corporate, mortgage, credit card, and student loan debt rising to historic highs, some analysts are concerned regarding the build-up of a bubble that could implode in the years to come.

How Debt Increased so Rapidly
Throughout 2017, the U.S. stock market had one of the strongest rallies in recent history, as the Dow Jones surged from 19,762 points to 25,000 points, by more than 26 percent from January to December of last year.

As the U.S. stock market demonstrated strength and momentum, both corporations and individuals started to spend more, acquiring all types of loans. In a bull market, consumer confidence rises and naturally, spending increases significantly.

Many individuals started to purchase homes they could not afford with high-interest mortgage loans and obtain debt to buy expensive products. Consequently, in January, credit card debt in the U.S. hit an all-time high, surpassing $1 trillion for the first time.

This month, student loans, which are federal loans that are not eligible for bankruptcy, established a new record by achieving $1.465 trillion.

Paul Della Guardia, an economist at the Institute of International Finance, said:

    “Over 90% of student loans are guaranteed by the U.S. Department of Education, meaning that if a recession causes a rise in youth unemployment and triggers mass defaults, this contingent liability could prove burdensome for the U.S. government budget.”

With debt at a historic high and the U.S. stock market declining amidst an ongoing trade-war with China, Michael Temple, a director of credit research at asset manager Amundi Pioneer, said in late November that the U.S. has a big problem in its hands that may lead to a recession.

However, since November, many companies in the Dow Jones and S&P 500 have experienced a large decline in their stock price in the range of 10 to 30 percent, a fairly large margin considering that they are the largest corporations in the global market.

Temple said:

    “The answer hinges on how long we have until the credit cycle turns, how long we have until interest rates have gotten to the point where they start to snuff out economic activity. If we were of the opinion that interest rates are already too high for the economy to stand and the recession was going to happen sometime next year, then I would say we’ve got a real big problem here.”

Possible Recession
Global debt is continuing to increase at a consistent rate and if the instability of the global stock market is sustained throughout the months to come, the record high credit card, mortgage, and student loans could accelerate the decline of financial markets.


Reference: https://www.ccn.com/global-debt-hits-184-trillion-and-11-4-of-it-is-from-the-us-big-bubble/

[bitcoinman18]

Student loan debt is going to be a huge bubble that will come crashing down in the next 20 years as people who took on the debt can't afford to pay it back.

[cellard]

I always like how final Bitcoin total supply is 21 million and US debt is around $21 trillion, I almost want it to stop at there so when BTC is $1 million a coin it will match, but at this rate we are going to hit $22 in no time.

Bond market will probably crash during next decade and I expect a lot of wealth to go towards neutral assets like gold and Bitcoin, and Bitcoin will hit huge valuations by then due how small it is right now.

Debt just cannot be paid back ever, we hit a point of no return, it's just a game of presidents kicking can down the road passing the hot potato to the next guy hoping it doesn't explode during their term.

What can Trump or anyone else do realistically to start shrinking the debt at a rate that can make investors think that it's unironically going to steadily go down?

[davis196]

I think that 184 trillion USD is the global government debt only.The total global debt is way bigger(it's bigger than the global GDP).This is why main evidence why the fiat money system is completely corrupted and it's going to crash big time in the not so distant future.This debt might pump the crypto prices,but it will force a faster crypto adoption as well.
 

[tdrinker]

Student loan debt is going to be a huge bubble that will come crashing down in the next 20 years as people who took on the debt can't afford to pay it back.

I'm not quite sure how it is ever expected that they do. The fees for tuition in the US are extortionate, there's little hope for most ordinary people to pay them back. Only those people who go on to have elite professions will be in a position to do so. Mortgage debt is largely different because there's at least a house as collateral, if too many people default on their payments then house prices will crash, but it's better than in the case of student debt where there is nothing to lay claim to.

[upsidedown75]

Debt is something alright if you can get it back higher later on. Lets assume you have a company and you are worth 10 million dollars and you make a million dollar revenue every single year, if you buy the next competition and get bigger you basically lost money and owe the banks a loan and you have a debt but since you bought the competition now you are worth 20 million dollars and have a 2 million in revenue. That is smart move and even though you are in debt you got bigger by getting it.

If USA achieves a way to sustain this, they can have hundreds of trillions of dollars in debt as long as they get better revenue for it. However the problem here is that sometimes they don't, they just get bigger and bigger in trouble and that is why they need to find a better way to fix this, it may work for a while but a country doesn't bankrupt like a company, it would be horrible for all citizens.

[jjjfff]

The whole world is working for 15 bankers who get to print their own money.

This system is insane.

[LeGaulois]

Borrowing money is a national sport in The US, they get loans to buy everything, from TV to house. As a student you can get a loan without the need to give a proof of income, so students use it to finance their university. But they will have debt up to 45 years old, considering they find immediately a job once they get their diplomas.
All loans are money created with the fractional reserve, the money doesn't exist physically.

[iv4n]

Borrowing money is a national sport in The US, they get loans to buy everything, from TV to house. As a student you can get a loan without the need to give a proof of income, so students use it to finance their university. But they will have debt up to 45 years old, considering they find immediately a job once they get their diplomas.
All loans are money created with the fractional reserve, the money doesn't exist physically.

Cash is physical, I have some informations, I don`t know where I saw it, that less than 10% of all money in the world is cash, rest is just numbers written on some paper. It`s one of the main reasons why will people turn to crypto, they don`t wish inflation`s, they don`t want made up stories, they wish proof, and algorithm is that proof.

The whole world is working for 15 bankers who get to print their own money.

This system is insane.

It looks like that, just the ones on top have benefits from this system, classical pyramid where ones on top take a shit on the ones bellow, in the end on the bottom you have ocean of shit, and everyone there wish get out from there. It`s insane, it`s crazy, it`s everything, there isn`t explanation for this system and that needs to be changed somehow, I hope that crypto have an answer, nothing else can help us.

[marcelocoin]

high interest rates, inflation of fiat currencies, countries of bankruptcy, we hope the crypto coins will help us when this world debt bubble burst!

[bitcoinman18]

high interest rates, inflation of fiat currencies, countries of bankruptcy, we hope the crypto coins will help us when this world debt bubble burst!

Hopefully they don't go down with the debt bubble. It's a possibility.

[Dondont]

Possible Recession
Global debt is continuing to increase at a consistent rate and if the instability of the global stock market is sustained throughout the months to come, the record high credit card, mortgage, and student loans could accelerate the decline of financial markets.


Reference: https://www.ccn.com/global-debt-hits-184-trillion-and-11-4-of-it-is-from-the-us-big-bubble/

In fact, the biggest problem with the increase in global debt is also due to the increasingly unstable global economy, especially because of the USA-China trade war and also because each year the bank's interest continues to be increased to strangle all personalities and companies involved in it.

[tdrinker]

Possible Recession
Global debt is continuing to increase at a consistent rate and if the instability of the global stock market is sustained throughout the months to come, the record high credit card, mortgage, and student loans could accelerate the decline of financial markets.


Reference: https://www.ccn.com/global-debt-hits-184-trillion-and-11-4-of-it-is-from-the-us-big-bubble/

In fact, the biggest problem with the increase in global debt is also due to the increasingly unstable global economy, especially because of the USA-China trade war and also because each year the bank's interest continues to be increased to strangle all personalities and companies involved in it.

Interest rates are increased by the FED. This then has a knock-on effect to banks, it is not that banks make the choice themselves. The FED choose to increase interest rates when they feel the growth of the economy may become too high due to excessive borrowing.

[dothebeats]

As long as the bankers keep on printing money and the government keeps on approving them, the global debt will hit higher numbers and would just implode from within. Idk why this system is allowing to produce more debt when nothing is ever being repaid and the government just allows printing more money to cover up for the blunders along the way. The Fed had shifted its interest rates higher recently but I don't think it's sufficient to prevent the implosion from happening that would mark yet another recession.

[yrrehc16]

To whom the world got the debt? are we getting some loan from another planet?
This is why we need to have the cryptocurrency, we don't know how fiat getting some debt!
Unlike in cryptocurrency we know and everything has its record.

[Xardasim]

If such debt had existed in any other country, they would have already collapsed. America can produce as much USD as they want and with this money they can close debts. But it will be worthless after dividing up 21 trillion USD with other countries.

[Nahl]

I think in the middle of global crisis almost every countries have debt but i was never knew sure why US debt seems increasing but i have been watching the news that one of the biggest expenditure for US government because they use their foreign exchange reserves for military and they had spend a lot of money to makes their military stronger

[Harlot]

To whom the world got the debt? are we getting some loan from another planet?
This is why we need to have the cryptocurrency, we don't know how fiat getting some debt!
Unlike in cryptocurrency we know and everything has its record.

When they are talking about debt they might be referring to the treasury bonds (debt security) they have yet to be paid to the individuals or corporations they have borrowed money on. But don't worry all debts are still paid the government as being sued for an unpaid debt by any person is a much more expensive way of repaying that. The problem I see here is the US government didn't have the right expected income from what they are doing that is why the debt ballooned to that kind of amount. Even though US has the largest debt they are actually still making a good flow on it unlike countries who have fallen from such kind of way.

[stompix]

To whom the world got the debt? are we getting some loan from another planet?

Pretty simple, the US is in debt to Japan, which is also in debt to the US.
It's like me owning you 10$ and you owning me 12$. Out debts are  22$ but also just 2$.

There was a nice graph on the BBC website after the crisis:
https://www.bbc.co.uk/news/business-15748696

You see France had to pay Germany 123bn and 202bn to the US.
But Germany also had to pay France 205bn and the US 440bn.

Of course, those are details, as they show a calmer image it's not that interesting, we need news that the purge will come!  

[aoluain]

The system has to implode at some stage, it just cannot continue to increase.
Debt, debt and more debt, society is being fed this, capitalism and commercialism
are feeding it and society are buying it. Everyone wants the new car, the big
house, the latest fashion and the latest gadgets, it all comes at a cost and we in
general keep borrowing and spending, But when the bubble pops its the public
who will pay.