Posts Tagged ‘GDP’

“…the world has been binging on debt like never before.

The International Monetary Fund reported last month that total nonfinancial-sector debt has ballooned to an all-time record of $152 trillion… while the global debt-to-GDP ratio has also soared to an all-time high of 225%, up from 200% just 14 years ago.

Worse, we’re seeing record debt at the government level, the corporate level, and the consumer level (via auto and student loans, in particular). The boom in corporate borrowing is especially concerning…

U.S. companies have already borrowed $1.4 trillion this year to date, according to data firm Dealogic. This is on pace to shatter last year’s previous all-time record of $1.5 trillion.

Unfortunately, most are using this money to refinance existing loans… buy back stock and pay dividends… and finance expensive (and often questionable) mergers and acquisitions. This will do little to help the economy. But it greatly increases leverage… and risk.” -Justin Brill

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“Speaking of debt, the International Monetary Fund (“IMF”) reported yesterday that total nonfinancial-sector debt has ballooned to $152 trillion worldwide.  This is the most in history.  The IMF says global debt-to-GDP has also soared to an all-time high of 225%, up from 200% just 14 years ago.” -Justin Brill

Money in the Bank?

Posted: February 9, 2016 in Economics
Tags: , , , , , , , , ,

“‘Almost a quarter of the world’s gross domestic product (GDP) now comes from countries with negative rates,’ According to an article in The Economist magazine this week.  In Sweden, for example, when you put your money in the bank, you don’t EARN interest anymore.  Instead, you have to PAY more than 1% a year just to keep your money in the bank.” -Steve Sjuggerud

“In 1964,… the US had a total debt load (private and public) of $1 trillion. Today, the economy carries a debt load of $59 trillion.  In 1964, annual US GDP was $656 billion.  Let’s see… today it is about $17 trillion.  Divide $17 trillion by $656 billion and we find that GDP has gone up 26 times – not even half as much as the debt.”  (Debt load up 59x, GDP up 26x).

“Any credit in excess of actual savings is a fraud. It produces a fraudulent boom, which must be followed by a bust. Eventually, the phony credit must go back whence it came.” -Bill Bonner