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January 9, 2018 | World Debt Burden has Exceeded $230 Trillion

Martin Armstrong

Martin Arthur Armstrong is the former chairman of Princeton Economics International Ltd. He is best known for his economic predictions based on the Economic Confidence Model, which he developed.

QUESTION: Mr. Armstrong; I find it interesting how you have pointed out that when it comes to public debt, the USA is actually far better than Europe or many in Asia. You also forecast that debt would begin to rise sharply from mid-2017 going into 2021. Do you have any figures to support that forecast?

NW

ANSWER: Yes of course!. The volume of global debt is rising significantly. According to the Institute of International Finance, total liabilities in the third quarter of 2017 surpassed $230 trillion (Public+Private). This is an increase of 16 trillion compared to the end of 2016. As the interest rates continue to rise, the debt servicing costs are simply going to explode. As a whole, Europe is over 100% of debt to GDP with respect to just Public Debt on average compared to the USA at about 73%. Global government public debt has exceeded $60 trillion.

This entire system is coming undone. The debt servicing is exploding as rates begin to rise. The Sovereign Debt Crisis is very much alive and well.

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January 9th, 2018

Posted In: Armstrong Economics

One Comment

  • Avatar Dave Schumacher says:

    Surely the bankers know this and have a plan. At my very low level of understanding my guess is there plan is something like this: At the first sign of a run, close all banks, then look for assets to use as a value for a reset. The only place to go is the assets of the American people. The French did it by seizing Church property. Make any sense?

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