Global Debt Load at Unprecedented Levels

"So Dennis, tell me again...WHY it is that you insist on posting all these articles warning that our financial system, our families and our society are on the verge of breaking down?  Do you get some kind of perverse joy from pointing out how rotten humans and our systems are?"

Joy?....no.

Urgency to wake people up and encourage them to get right with The Lord?....yes.

Ezekiel 33
2 “Son of man, speak to your people and say to them: ‘When I bring the sword against a land, and the people of the land choose one of their men and make him their watchman, 3 and he sees the sword coming against the land and blows the trumpet to warn the people, 4 then if anyone hears the trumpet but does not heed the warning and the sword comes and takes their life, their blood will be on their own head. 5 Since they heard the sound of the trumpet but did not heed the warning, their blood will be on their own head. If they had heeded the warning, they would have saved themselves. 6 But if the watchman sees the sword coming and does not blow the trumpet to warn the people and the sword comes and takes someone’s life, that person’s life will be taken because of their sin, but I will hold the watchman accountable for their blood.’

So....if The Lord puts something on your heart and you REFUSE to do it....your refusal may end up feeling like anxiety.

The financial world is clearly a false idol and a false foundation for most Americans.  It would be within God's pattern to tear down false idols right in front of the folks who are worshiping them...and leave everyone standing around with their mouths open saying, "What just happened?"

Did you know that there is more than $28,000 of debt for every man, woman and child on the entire planet?  And since close to 3 billion of those people survive on less than 2 dollars a day, your share of that debt is going to be much larger than that.  If we took everything that the global economy produced this year and everything that the global economy produced next year and used it to pay all of this debt, it still would not be enough.  According to a recent report put out by the McKinsey Global Institute entitled “Debt and (not much) deleveraging“, the total amount of debt on our planet has grown from 142 trillion dollars at the end of 2007 to 199 trillion dollars today.  This is the largest mountain of debt in the history of the world, and those numbers mean that we are in substantially worse condition than we were just prior to the last financial crisis.

When it comes to debt, a lot of fingers get pointed at the United States, and rightly so.  Just prior to the last recession, the U.S. national debt was sitting at about 9 trillion dollars.  Today, it has crossed the 18 trillion dollar mark.  But of course the U.S. is not the only one that is guilty.  In fact, the McKinsey Global Institute says that debt levels have grown in all major economies since 2007.  The following is an excerpt from the report…

Seven years after the bursting of a global credit bubble resulted in the worst financial crisis since the Great Depression, debt continues to grow. In fact, rather than reducing indebtedness, or deleveraging, all major economies today have higher levels of borrowing relative to GDP than they did in 2007. Global debt in these years has grown by $57 trillion, raising the ratio of debt to GDP by 17 percentage points (Exhibit 1). That poses new risks to financial stability and may undermine global economic growth.

What is surprising is that debt has actually grown the most in China.  If you can believe it, total Chinese debt has grown from 7 trillion dollars in 2007 to 28 trillion dollars today.  Needless to say, that is absolutely insane…

China’s debt has quadrupled since 2007. Fueled by real estate and shadow banking, China’s total debt has nearly quadrupled, rising to $28 trillion by mid-2014, from $7 trillion in 2007. At 282 percent of GDP, China’s debt as a share of GDP, while manageable, is larger than that of the United States or Germany. Three developments are potentially worrisome: half of all loans are linked, directly or indirectly, to China’s overheated real-estate market; unregulated shadow banking accounts for nearly half of new lending; and the debt of many local governments is probably unsustainable. However, MGI calculates that China’s government has the capacity to bail out the financial sector should a property-related debt crisis develop. The challenge will be to contain future debt increases and reduce the risks of such a crisis, without putting the brakes on economic growth.

What all of this means is that our long-term global economic problems have gotten much, much worse.  This short-lived period of relative stability that we have been enjoying has been fueled by unprecedented amounts of debt and voracious money printing.  Anyone with half a brain should be able to see that this is a giant financial bubble, and in the end it is going to unwind very, very painfully.  The following comes from a Canadian news source…

At the beginning of 2008, government accounted for a smaller portion of the debt pie than corporate, household or financial debt. It now exceeds each of those other categories.

“The current situation is much worse than in 2000 or 2007, and with interest rates near or at zero, the central banks have already used up their ammunition. Plus, the total indebtedness, especially the indebtedness of governments, is much higher than ever before,” said Claus Vogt, a Berlin-based analyst and co-author of a 2011 book titled The Global Debt Trap.

“Every speculative bubble rests on some kind of a fairy tale, a story the bubble participants believe in and use as rationalization to buy extremely overvalued stocks or bonds or real estate,” Mr. Vogt argued. “And now it is the faith in the central-planning capabilities of global central bankers. When the loss of confidence in the Fed, the ECB etc. begins, the stampede out of stocks and bonds will start. I think we are very close to this pivotal moment in financial history.”

Sadly, the truth is that Wall Street is headed for a very painful awakening.

What we are experiencing right now is the greatest financial bubble of all time.

What comes after that is going to be the greatest financial crash of all time.

199,000,000,000,000 dollars of debt is about to come crashing down, and the pain of this disaster will be felt by every man, woman and child on the entire planet.

Here;  http://theeconomiccollapseblog.com/archives/the-debt-to-gdp-ratio-for-the-entire-world-286-percent

Also please remember from a recent post that Revelation 18 says THREE TIMES that the financial world will be destroyed in ONE HOUR.

"But Dennis, you can't be serious!!  I have been saving money in my 401k for 30 years now and next year I plan on moving to Arizona and spend the rest of my life living off my savings and reading romance novels by the swimming pool!  I deserve this....and these articles are doing nothing for me except making me anxious about my future!"

Good!  You should be anxious about your future if you have forgotten that YOUR ONLY PURPOSE for being on earth is to make relationships with other people by showing them Christ's love and then when the opportunity presents itself you TELL THEM about Christ's love by sharing the Gospel and clearly telling them that salvation comes ONLY through Jesus Christ.

Men's souls are hanging in the eternal balance right now!  Men (and women) that you and I know. The Holy Spirit is preparing the soil and it's our job to scatter the seed.  How much seed have we scattered in the last week?  The last month?  The last year??  EVER??

If we start to ponder that question and realize that we have spent more time watching NASCAR, golf and football than we have EVER spent sharing the Gospel or making disciples....maybe we should repent of our false idols and start being obedient today.