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The Survival Economist: Banks will Take your Money in the Coming Financial Crisis

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The Survival Economist
Premiered May 15, 2022

It is said that if you have ten dollars bill and no debt, you are actually richer than 20 percent of the Americans. This Fiat Con has been a Ticking Time Bomb for a very very long time!

People should be fearful that this tower of debt is visibly wavering. More than a decade after the financial crisis, the amount of combined global government, corporate, and household debt has $257 trillion. Global debt has grown by about 50% in the last ten years. More and more debt needs to be created every day, or the system collapses upon itself!

The FED will secure it with even more debt. Its the only thing they can do because they run a DEBT based financial system. And all the interest can never ever ever be paid back. Twelve years on from the global financial crisis, the world continues to reap the consequences. The Entire world is now awash in paper and drowning in debt. BUT, the Central bankers are buying gold. What does that tell us; as the Mainstream media remains silent to the disaster. Buy Precious Metals. Your pond will thank you.

Welcome to The Atlantis Report.

As the U.S.-China trade war continues and economies take a dive, already low global interest rates could drop even further. The Institute of International Finance noted that total worldwide debt is now $257 trillion, up nearly 50 percent. Although the borrowing helped the recession, the massive debt prevents regulators from increasing interest rates. As many of us still remember from 2008, household debt was one of the trigger points that led to the great financial crisis.

So I think it is always important to keep in mind how has the debt load grown over time. So over the last twelve years so we are using 2008 as the beginning period and looking at where we stand today for beginning 2020. We can see the various debt segments have actually grown quite differently. From a total global debt estimate perspective, back in 2008, we were looking at about a hundred eighty trillion dollars of total global debt.

Today sitting here sort of first quarter 2020, we are looking at more than 250 trillion. So we have definitely seen continued growth of debt. Sort of 1.7 multiple from where we were 12 years ago. Let’s look at household debt since that’s what we are all familiar with. We have seen household that grown by about 1.7 multiple.

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Student debt has been something that we have been talking about a lot. Student debt has actually grown from about 600 billion in 2008 to about 1.4 trillion.

So when you do the math, that’s about a 2.4 multiple over the 12 years period. So compare that to the household debt, we have actually seen a faster growth of student debt.

Global corporate debt is now above $29 trillion, with around one-quarter maturing over five years. Corporate debt is actually a tale of two worlds. When you look at the financial institutions, the banks, and the like. The debt has actually stabilized around the same level as it was in 2008.

So we have seen maybe a small five or ten percent growth on the debt level for financial institutions. For nonfinancial institutions, on the other hand, as a lot of companies have really tried to take advantage of this low-interest-rate environment, their debt has grown much more than financial institutions. By my estimate, it’s grown about 1.7 multiple from twelve years ago. Corporations are borrowing money that can only be paid back if profits increase, but 70% of the US economy is generated by consumer spending.

The average U.S. household has $7,000 in credit card debt and pays more than $1,000 a year in interest. From 2008 to today, a lot of governments got involved in quantitative easing, QE. And part of a QE requires the government to put a lot of liquidity into the marketplace, and therefore, a lot of government had to take on the additional burden of debt to make that possible. So a government debt that has grown about 1.8 multiple over the last twelve years. From about 40 trillion up to close to 70 trillion.

https://www.youtube.com/watch?v=lzQ7QSAZ-TM

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