As Global Debt Hits A Record $247 Trillion, The IIF Issues A Warning, by Tyler Durden

SLL will keep posting debt stories until the damn bubble finally busts, then we’ll post stories about deflation and depression. From Tyler Durden at zerohedge.com:

Every quarter the Institute of International Finance publishes a new number of the total amount of global debt outstanding, and every quarter the result is the same: a new record high

Today was no exception: according to the IIF’s latest Global Debt Monitor, the amount of debt held in the world rose by the biggest amount in two years during the first quarter of 2018, when it grew by $8 trillion to hit a new all time high of $247 trillion, up from $238 trillion as of Dec. 31, 2017and up from by $30 trillion from the end of 2016.

In other words, there is now a quarter quadrillion dollars in global debt, and it represents 318% of global GDP. More concerning is that this was the first time since Q3 2016 that global debt to GDP increased, suggesting that the marginal utility of debt is once again below 1.

This is how the debt is broken down as of Q1 2018 and compared to Q1 2013:

  • Non-financial corporate debt: $74 trillion, up from $58 trillion in 5 years
  • Government debt: $67 trillion, up from $56 trillion
  • Financial debt: $61 trillion, up from $56 trillion
  • Household debt: $47 trillion, up from $40 trillion

And visually:

Some more details from the report, via Bloomberg:

  • The government debt-to-GDP ratio has surged to 101 percent in the U.S.
  • Non-financial corporate debt is now at record highs in Canada, France and Switzerland
  • Household indebtedness in China, Chile and Colombia grew over 3% since Q1 2017, topping 49%, 46% and 30%, respectively.

To continue reading: As Global Debt Hits A Record $247 Trillion, The IIF Issues A Warning

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3 responses to “As Global Debt Hits A Record $247 Trillion, The IIF Issues A Warning, by Tyler Durden

  1. ” SLL will keep posting debt stories until the damn bubble finally busts…”

    The article seemed to waffle and hedge about a bubble but I am looking for the collision of said bubble with the financial “Titanic” indicator of a… “signal that an iceberg is dead head”…

    Like

  2. So long as the vast majority of our ‘money supply’, (it really ought to be called a ‘debt supply’), is created through bank loans, then it simply cannot be otherwise. Indeed, the current push towards a cashless society threatens to leave us with no debt-free money whatsoever.

    It need not be this way, and it should not be this way. Governments possess coinage sovereignty – the power to create money debt-free – and they are obliged to do so in order to ensure that society has sufficient money to purchase its output without having to resort to borrowing. The burden of spending such debt-free money is one that can safely be transferred to the general public.

    None of this is new: Major Douglas addressed these matters a century ago, in ‘Economic Democracy’, ‘Credit Power and Democracy’, ‘The Control and Distribution of Production’, ‘Social Credit’, ‘The Monopoly of Credit’ and various other publications.

    Like

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