Global Debt Hits Record $233 Trillion

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Bloomberg: Global debt rose to a record $233 trillion in the third quarter of 2017, more than $16 trillion higher from end-2016, according to an analysis by the Institute of International Finance.

Private non-financial sector debt hit all-time highs in Canada, France, Hong Kong, South Korea, Switzerland and Turkey. more …

Opinion: Outgoing Federal Reserve Chairwoman Janet Yellen said this about the sustainability of debt to GDP: “It’s the type of thing that should keep people awake at night” she said.

For some reason debt and deficits do not matter any more. We worried when Barack Obama spent $1 trillion on stimulus that no one could find, and we criticized him for saying debt was unpatriotic while doubling it.

Maybe it is because the global stock market is flying high and investors believe that growing IRA and 401k plans along with tax cuts will make the debt problem go way.

Of course we know that with tax cuts and business expansion, interest rates will rise and with them the cost of borrowing, making interest payments owed to US creditors unsustainable at some point.

I did a simple Google search: How much actual money is there in the world?

According to the Bank of International Settlements (here), as of November 17, 2017, the total amount is $5 trillion.

According to the CIA, the total amount is $80 trillion if you include “broad money” (checking accounts, savings accounts, money-market accounts — not quite physical money, but you can make a bank transaction digitally and use that as money).

So how does $80 trillion turn into $233 trillion in debt? Easy, governments print new money as stimulus to get out of recessions, finance wars and social programs, and never even think about paying it back.

The book of Revelation 6:5-6 teaches that one day the entire economic system of the world will collapse quickly.

One day everything will be fine (Matthew 24:38-39) and the next, men will have to work a full day to feed themselves (Revelation 6:5-6). Only the mega rich (oil and wine) will be spared for a time.

Hyperinflation is an economic condition that comes on quickly:

Hyperinflation often occurs when there is a significant increase in the money supply not supported by gross domestic product (GDP) growth (see Janet Yellen statement above) resulting in an imbalance in the supply and demand for the money. Left unchecked, this causes prices to increase, as the currency loses its value.

It happened in World War II Germany, and it is happening in Venezuela as I write this. Just imagine what it will be like when hyperinflation spreads across the entire world?

There is a simple way to avoid such a global calamity – not be here when it happens. You see three chapters before Revelation 6 we find these words:

“Because you have kept My command to persevere, I also will keep you from the hour of trial which shall come upon the whole world, to test those who dwell on the earth.” Revelation” 3:10.

There is only one way: “Believe on the Lord Jesus Christ and you will be saved” (Acts 16:31). It is that simple and that complex.

1 COMMENT

  1. In a prior comment I said I thought prophetic end time events were playing out in slo mo. I am no longer of that opinion. My head is spinning. Thank you for the Gospel reminder, Author. Time is short. This is all so very sobering. Even so…

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