Social Security operates on a simple principal: "You give your money to politicians and they squander it on something else!" Harry Browne Fail-Safe Investing

The Bankruptcy Of The Planet Accelerates – 24 Nations Are Currently Facing A Debt Crisis

There has been so much attention on Greece in recent weeks, but the truth is that Greece represents only a very tiny fraction of an unprecedented global debt bomb which threatens to explode at any moment.  As you are about to see, there are 24 nations that are currently facing a full-blown debt crisis, and there are 14 more that are rapidly heading toward one. 

Right now, the debt to GDP ratio for the entire planet is up to an all-time record high of 286 percent, and globally there is approximately 200 TRILLION dollars of debt on the books. 

That breaks down to about $28,000 of debt for every man, woman and child on the entire planet.  And since close to half of the population of the world lives on less than 10 dollars a day, there is no way that all of this debt can ever be repaid.  The only “solution” under our current system is to kick the can down the road for as long as we can until this colossal debt pyramid finally collapses in upon itself.

 According to a new report from the Jubilee Debt Campaign, there are currently 24 countries in the world that are facing a full-blown debt crisis…■ Armenia■ Belize■ Costa Rica■ Croatia■ Cyprus■ Dominican Republic■ El Salvador■ The Gambia■ Greece■ Grenada■ Ireland■ Jamaica■ Lebanon■ Macedonia■ Marshall Islands■ Montenegro■ Portugal■ Spain■ Sri Lanka■ St Vincent and the Grenadines■ Tunisia■ Ukraine■ Sudan■ Zimbabwe 

And there are another 14 nations that are right on the verge of one…■ Bhutan■ Cape Verde■ Dominica■ Ethiopia■ Ghana■ Laos■ Mauritania■ Mongolia■ Mozambique■ Samoa■ Sao Tome e Principe■ Senegal■ Tanzania■ Uganda

Well, the truth is that the “wealthy” countries are some of the biggest debt offenders of all.  Just consider the United States.  Our national debt has more than doubled since 2007, and at this point it has gotten so large that it is mathematically impossible to pay it off 

It Is Mathematically Impossible To Pay Off All Of Our Debt

Did you know that if you took every single penny away from everyone in the United States that it still would not be enough to pay off the national debt?  Today, the debt of the federal government exceeds $145,000 per household, and it is getting worse with each passing year.  Many believe that if we paid it off a little bit at a time that we could eventually pay it all off, but as you will see below that isn’t going to work either. 

It has been projected that “mandatory” federal spending on programs such as Social Security, Medicaid and Medicare plus interest on the national debt will exceed total federal revenue by the year 2025. 

That is before a single dollar is spent on the U.S. military, homeland security, paying federal workers or building any roads and bridges.  So no, we aren’t going to be “paying down” our debt any time in the foreseeable future.  And of course it isn’t just our 18 trillion dollar national debt that we need to be concerned about.  Overall, Americans are a total of 58 trillion dollars in debt.  35 years ago, that number was sitting at just 4.3 trillion dollars.  There is no way in the world that all of that debt can ever be repaid.  The only thing that we can hope for now is for this debt bubble to last for as long as possible before it finally explodes.

 Many believe that that we could improve the situation by raising taxes.  And yes, a little bit more could probably be squeezed out of us, but the impact on government finances would be negligible.  Since the end of World War II, the amount of tax revenue taken in by the federal government has fluctuated in a range between 15 and 20 percent of GDP no matter what tax rates have been.  I believe that it is possible to get up into the low twenties, but that would also be very damaging to our economy and the American public would probably throw a huge temper tantrum.

DYI Comments:  Our out of control spending is the culprit.  There is no political will to reform Social Security or end the growing medical oligarchies(and their associated fraud) that has "jacked up" the cost to Medicare.  The corruption is now so bad that our top major 25 banks are repeatedly fined for major crimes and no one sees one day in jail.

Currently and for about the next 5 years ultra low inflation/deflation will reign supreme, as we enter the 2020's governments will do what they do best; money printing in order to pay for past debts and social programs, at the expense of the middle class and poor.

 Social Security operates on a simple principal: "You give your money to politicians and they squander it on something else!"

Harry Browne

Fail-Safe Investing

DYI