Global Wave of Debt Is Largest, Fastest in 50 Years

[outatime1]

The gap between the rich and poor keeps getting wider as the wealthy control the political establishment.  The poor are faced with high medical costs, student loan debt, high interest rates on credit cards, and low wages.

The system is designed to fail.

[iamMhew]

The increase in the amount of Debt are expected if the GDP increases as well, whats alarming is the Debt to GDP ratio.
If it continues to increase significantly or constantly in a triple digit until it reaches the amount of GDP level, then that would be critical
for it comes along a great debt cost. And it shows also that investors turns into creditors coz they have low confidence in the economy.

Every economy has this metrics and its the role of the government and also the central banks to put some measures in this new trends in order
to control any risk that could adversely affect their economy.

[Bezobraznike]

   The population of the world in 1950 was 2,556,000,000! Today 7,500,000,000! Nobody could predict that, like nobody could
predict that debt will rise so fast, same like inflation, and all other things. This system is can't be apply on global level, it's why
we need digitalization, why we need Blockchain!
    Blockchain provides an immutable record, consider how helpful that can be for all of us who are fair and honest! In public sector
Blockchain can be used for voting, all kind of records, paper documents can become history! Insurance, healthcare, gaming, supply
chain, imagine revolution that Blockchain can make!

[abhiseshakana]

EU had proven, that in some cases resigning from own currency could have been harmful in case of crisis. Spain or Greece suffer damages from the last (a decade ago!) financial crisis, and as they could not manipulate its own currency and are unwilling to make really hard reforms.
Yet as long as Bretton Woods agreement is still in force, it is hard to believe that going back to the gold standard or switching to BTC as the worlds currency (instead of USD) will happen in the next several decades.

I think the cause of economic problems in Spain and Greece is because of the debt crisis not because of adopting the euro. Although the Euro adoption effect means to generalize the economic standardization of all member countries which in fact the economic conditions differ from one another. This can be seen from the differences in policies taken by the European Union towards the debt crisis of Spain and Greece.

Although the process of transition from the fiat system into a gold currency (money with intrinsic value) takes a long time at least by starting to use the gold currency will stop the depravity of our economy and initiate improvements in the global economic system.

[airdnasxela]

We cannot escape debt. A country with debt is normal. It only becomes so bad when the country have so much debt that their economy is falling. How come a country becomes free from debt when almost all people who lives in there have debts? Whether you are poor or rich, you still have debt. The richer you are, the higher debts you have. The difference is that, poor can't pay their debts because they don't have sufficient money. While rich people have debts yet they still have a lot of money.

Unfortunately, the politicians who borrow them are the people who pay the bills.
Many of these politicians are corrupt and no one is emulating them for their punishment, but rather impunity, especially in developing countries.

Therefore, the return to gold is highly unlikely, especially with the inflation of these countries ’spending and exchange. The least solution is to erode the value of the currency and thus print more money.

 

I too agree that returning back to gold standard is highly unlikely! But we also need to understand that, it doesn't stop banks and institutions from buying more and more gold to stack up their underground lockers! So the demand of gold is not going to decrease! Rather, in current situation, this trend of buying gold is likely to increase and we have already started seeing a surge in Gold's price.

So it really doesn't matter if gold standard is coming back or not, but it still remains the best hedge instrument during uncertain times!

Although it's hard to return with gold standard, gold will always be good because it will never depreciate. The demand of gold will never lose because its value will never lose also. Gold will remain stronger in any situation.

[davinchi]

This reminds of the climate change topic and the corporate shamers that try to make it look like its the perfumes that we use that somehow changes the world, hell there was even a thesis regarding how "farts" are actually much worse to our climate than it people imagine it is considering there is close to 8 billion people in the world right now compared to less back in the day so even that should be considered.

However, reality is 100 companies create 70% of the problems in the climate change, if those 100 companies suddenly vanished we would have 70% better climate in our hands. Same with debt, it looks like individuals have a lot of debt but this trillions of dollars are not because of individuals, its the companies that do not pay their debt on time and live with debt on their sheet.

[Shasha80]

It is true that the global wave of debt is the largest, and this is not a good thing for the world economy. Many countries
are experiencing a crisis economy and one of them because it has a debt that is so large. And even sadder now most
people have think of debt as a lifestyle and also have a debt is considered normal. Whereas the right life, a life that is free
from debt. According to me we should avoid debt, because if we are accustomed to debt it will make us poor.

[chip1994]

Gold is and always was hedge against bad things happening. If we are to experience a crisis, it will keep going up.

However I agree with one thing - hoarding gold is not gonna save your ass. It has no liquidity. How do you want to pay with it? If there is nobody to give you money for it, then it's useless to you at the end of the day.

Anyway, buying gold is still the best thing you can do. And buying real estate too.

That's a good idea but it's old, and that's the idea of the old people who didn't have bitcoin before. Now that things are different, we have a different kind of non-physical assets with limited supply. So buying Bitcoin will be quite reasonable when you live in a world of technology, gold will not make us as much profit as bitcoin. that's what I'm sure of because the price of bitcoin is more powerful now than Gold, like the Iranian rocket launch on the US base.

[justdimin]

There is a big big difference in gold and whats about to happen with the whole Iran versus USA thing tho, I mean I know debt is a lot and inflation is caused due to debt and other stuff so in any normal day you are right, gold is a great thing to invest into against inflation and against anything bad, hell betting on gold in case Trump gets reelected is also awesome as well, at the very least makes sure you won't be at disadvantage in that case.

However, and even tho I doubt this, USA goes to war with Iran, Iran is one of the few nations in the whole world that has a gold backed currency and they have insane amount of golds, it is actually illegal for them to take it out of nation for the regular people so not only national bank has a lot of gold but people do have a lot of gold as well, so if all of that gold actually goes out of nation due to a war, we will see gold price dropping a lot.

[ChrisPop]

I have learned through study that accumulated debt will reflect harshly in the economy sooner or later, in a form or another. Especially the United States debt is at crazy high historical rates nowadays and once the debt bubble bursts in my opinion we're going to see a massive cascade effect not on the US economy but on a global level as well.

[target]

But why would Iran export their gold as well? It isn't something that can benefit them as well since the oil they have are much needed outside their country.

I have learned through study that accumulated debt will reflect harshly in the economy sooner or later, in a form or another. Especially the United States debt is at crazy high historical rates nowadays and once the debt bubble bursts in my opinion we're going to see a massive cascade effect not on the US economy but on a global level as well.

In a form of WAR is probably to most possibility. Its like a person with deep neck debt, his patience are gong to be very shallow that an ant bite can cause a brawling to anyone. With a growing population that needs to be fed while political instability forces a president to take sides just to please the party.

[Febo]

Global Wave of Debt Is Largest, Fastest in 50 Years

Man do you need articles to know this?  Just look around you. 50 years ago you go to bank to take a loan if you build house. Today when you go buy car they dont even want to sell you unless you take it on debt. Economy we have is totally degenerated. Use now to pay tomorrow.

[Theb]

I have learned through study that accumulated debt will reflect harshly in the economy sooner or later, in a form or another. Especially the United States debt is at crazy high historical rates nowadays and once the debt bubble bursts in my opinion we're going to see a massive cascade effect not on the US economy but on a global level as well.

That is in fact true not only because financial institutions from the US have holdings directly in markets of other countries it also spreads a massive FUD for investors that is why it has a cascading effect on the global markets. Just observe how the NASDAQ moves daily you will see that other markets are also affected especially when they move on a significant quantity. The US being the most powerful country affects everything especially the economy of other countries.

[TheCoinGrabber]

Well the banks do have a back-up plan. It's called government bailout. 

Gold is and always was hedge against bad things happening. If we are to experience a crisis, it will keep going up.

However I agree with one thing - hoarding gold is not gonna save your ass. It has no liquidity. How do you want to pay with it? If there is nobody to give you money for it, then it's useless to you at the end of the day.

Anyway, buying gold is still the best thing you can do. And buying real estate too.

That's a good idea but it's old, and that's the idea of the old people who didn't have bitcoin before. Now that things are different, we have a different kind of non-physical assets with limited supply. So buying Bitcoin will be quite reasonable when you live in a world of technology, gold will not make us as much profit as bitcoin. that's what I'm sure of because the price of bitcoin is more powerful now than Gold, like the Iranian rocket launch on the US base.

Or maybe use the profits from bitcoins to buy gold? Yes I believe crypto is the future but so far gold is still a very trusted asset, one that people fall back to in times of uncertainty. I doubt it'll ever really make profit, it's just for safekeeping since humans seem to find it valuable.

When people talk about backing currencies, they think of backing it with gold (like it used to), not crypto. Or in some cases, crypto backed by gold.

[abhiseshakana]

I have learned through study that accumulated debt will reflect harshly in the economy sooner or later, in a form or another. Especially the United States debt is at crazy high historical rates nowadays and once the debt bubble bursts in my opinion we're going to see a massive cascade effect not on the US economy but on a global level as well.

The government usually looks at the debt ratio of total GDP to measure debt in a safe or crisis position, debt limit in unsecured conditions is 60% of total GDP. But I think the government should try to look at things from a different angle.

In 1998 Indonesia's debt ratio was also at a safe point, only when the value of the rupiah against the dollar suddenly plummeted. Indonesia failed to pay off its foreign debt. As a result, Indonesia has been paralyzed and has a monetary crisis. So learning from Indonesia's case study of debt ratios or data on paper cannot guarantee that a country's debt is safe especially if the foreign debt is owed.

Debt in the form of foreign direct investment used for government infrastructure projects, state-owned enterprise projects, and the private sector, is very dangerous for a country because of the potential for foreign exchange losses.

[heidikim]

Global debt is growing. Why do you think? Because the production value is falling. Inflation-related measures will be taken. That's a big problem. We won't be able to stop it if it keeps making money from it all the time. What is really valuable is production. Production labor should have more money.

[Harlot]

Debt in the form of foreign direct investment used for government infrastructure projects, state-owned enterprise projects, and the private sector, is very dangerous for a country because of the potential for foreign exchange losses.

I think the most recent example for this is what China is doing to other countries on what they so call "debt trap". The Chinese government will loan out money to countries they know that wouldn't be able to pay so when they default to that loan they will control the assets they have as collateral. This is how countries like China are taking advantage of other countries who are short in money and they are just losing more when their real aim is to just have a stable economy.

[1Referee]

When people talk about backing currencies, they think of backing it with gold (like it used to), not crypto. Or in some cases, crypto backed by gold.

It's the perfect recipe for failure.

The whole point of crypto is that you verify, and not trust. How can you verify that Brinks actually has enough Gold in its vaults to back up whatever Gold backed crypto? I don't want to trust on an "independent" entity doing the verification part and they then release a report that says they are backed. If I can't see that they are backed myself, their words hold no value.

Bitcoin is Bitcoin. You can verify everything easily and fast with how transparent this whole system is. Why go back to something we try to get rid of?

[drlukacs]

People spend money all the time. Is it always right to buy something? Necessary needs can be taken but luxury consumption is too much. What Bitcoin can do in this case. Inflation can be a means of control. A fairer distribution of economic power can be achieved with more limited money.

Bitcoin is now considered the most popular digital asset and also the easiest to trade. Besides, it also addresses the problem of inflation because its supply is limited so people cannot use it to waste like fiat money. That's its strong point and it is being traded a lot and being bought and held by many people to avoid being affected too much by the economic downturn. actually bitcoin can help people like us out of poverty if we buy and hold it until the economic crisis occurs.

[Linkkoin]

It's the perfect recipe for failure.

The whole point of crypto is that you verify, and not trust. How can you verify that Brinks actually has enough Gold in its vaults to back up whatever Gold backed crypto? I don't want to trust on an "independent" entity doing the verification part and they then release a report that says they are backed. If I can't see that they are backed myself, their words hold no value.

Bitcoin is Bitcoin. You can verify everything easily and fast with how transparent this whole system is. Why go back to something we try to get rid of?

The most important is that with cryptocurrencies if you send them to your own cold or hardware wallet it belongs to you unless it is stolen). With buying/trading precious metals in many countries (unless you get it with much worse spread) you just get a confirmation that you are an owner of some ounces of eg. gold in a gold bar stored 1500 miles away from you.
When really needed you will have no access to such gold or it will be captured by authorities (as it already happened in the USA in 1933 with Executive Order 6102 by F.D.Roosevelt).