Does a 100 Trillion Debt Total Matter?

Economic and Mark of the Beast
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Does a 100 Trillion Debt Total Matter?

Postby st louis steve on Wed Mar 12, 2014 10:35 am

Does a 100 Trillion Debt Total Matter? :shock:



Debt is everywhere but it just does not seem to matter. Thanks to the folks at Zero Hedge, you get the account Global Debt Crosses $100 Trillion, Rises By $30 Trillion Since 2007; $27 Trillion Is "Foreign-Held" – "Total global debt has exploded by 40% in just 6 short years from 2007 to 2013, from "only" $70 trillion to over $100 trillion as of mid-2013, according to the BIS' just-released quarterly review". They make this assessment:

"Not surprisingly, given the significant expansion in government spending in recent years, governments (including central, state and local governments) have been the largest debt issuers (Graph C, left-hand panel). They mostly issue debt in domestic markets, where amounts outstanding reached $43 trillion in June 2013, about 80% higher than in mid-2007 (as indicated by the yellow area in Graph C, left-hand panel). Debt issuance by non-financial corporates has grown at a similar rate (albeit from a lower base)."

There seems only one valid conclusion drawing upon these figures. Whatever economic activity exists is based upon government expenditures and that corporations have lowered their interest rates on their outstanding debt. The former is most disturbing, while the latter, under normal circumstances, would offer a promise of an expanding economy.

Since the former middle class has endured the greatest loss of income and experiences a distinct lowering in their standard of living since the financial meltdown, the prospects of main street prosperity seems remote at best. Corporations, as a whole, have improved their balance sheets as they lower their debt service, accompanied with cost efficiencies and reduction in employee costs. The day of the upward mobility career looks like a distant memory for the working class.

Government employment is growing, but such a public sector economy never produces actual wealth. Only a disturbing burden of welfare obligations of all kinds and an increase in state debt comes out of this pattern of a false and unsustainable economy. http://www.batr.org/negotium/031214.html
st louis steve
 
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