The Scariest Corporate Debt Bubble in U.S. History

We are now being told that debt is no big deal.  A nation can have $22 trillion or $32 trillion of debt and it's all just a big number that means really nothing...so we are told.  And now with negative interest rates we are being told that we can actually MAKE money by borrowing more!

Of course that's not true.  It's just the latest lie we being fed.

If it was all so easy to just borrow money and print more, there would be no poor people in any country!  Why?  Because every government would just borrow and print enough to give people whatever they need! 

In reality, money only retains it's value BECAUSE of it's scarcity.

Why does gold have value?  Because it is scarce.  In fact, if you melted down all the gold ever mined throughout human history it would all fit into an Olympic sized swimming pool   So what would happen to the price of gold if solid gold meteor could somehow fall from the sky and land on planet earth intact and weighing 1 million tons?

Answer;  the price of gold would plummet overnight.  The ounce of gold you have in your gun safe would fall from $1200 to $3 in an instant.

According to this article the corporations of the world have borrowed so much money that when the bubble pops (and it could happen any day) it could send the global financial system into a haywire spiral.

We are facing a corporate debt bomb that is far, far greater than what we faced in 2008, and we are being warned that this "unexploded bomb" will "amplify everything" once the financial system starts melting down.  Thanks to exceedingly low interest rates, over the last decade U.S. corporations have been able to go on the greatest corporate debt binge in history.  

It has been a tremendous "boom", but it has also set the stage for a tremendous "bust".  Large corporations all over the country are now really struggling to deal with their colossal debt burdens, and defaults on the riskiest class of corporate debt are on pace to hit their highest level since 2008.  Everyone can see that a major corporate debt disaster is looming, but nobody seems to know how to stop it.

At this point, companies listed on our stock exchanges have accumulated a total of almost 10 trillion dollars of debt.  That is equivalent to approximately 47 percent of U.S. GDP...

A decade of historically low interest rates has allowed companies to sell record amounts of bonds to investors, sending total U.S. corporate debt to nearly $10 trillion, or a record 47% of the overall economy.

In recent weeks, the Federal Reserve, the International Monetary Fund and major institutional investors such as BlackRock and American Funds all have sounded the alarm about the mounting corporate obligations.

We have never witnessed a corporate debt crisis of this magnitude.

Corporate debt is up a whopping 52 percent since 2008, and this bubble is continually growing.

And actually the 10 trillion dollar figure is the most conservative number out there.  Because if you add in all other forms of corporate debt, the grand total comes to 15.5 trillion dollars.  The following comes from Forbes...

Total corporate debt is actually much higher. Adding the debt of small medium sized enterprises, family businesses, and other business which are not listed in stock exchanges ads another $5.5 trillion. In other words, total US corporate debt is $15.5 trillion, 74% of US GDP.

Needless to say, this mountain of corporate debt is definitely not sustainable, and I have already noted that defaults are rising.  One expert recently explained that all of this debt is "an exploded bomb" and that at some point something will come along to "trigger the explosion"...

"We are sitting on the top of an unexploded bomb, and we really don't know what will trigger the explosion," said Emre Tiftik, a debt specialist at the Institute of International Finance, an industry association.

Read more at https://www.prophecynewswatch.com/article.cfm?recent_news_id=3659#6a5e21MSkesGc7mt.99

What if you had worked your butt off for the last 35 year to stash away $5 million dollars and NOW you are ready to retire away to Arizona to read novels and soak in the hot tub until you die?  And what if this whole financial system suddenly falls into the toilet as the "faith and confidence" in the U.S. Government (which is fixing the value of your $5 million) suddenly vanishes?  And you come out of the hot tub to learn that your $5 million now won't buy you a bag of groceries?

Has this exact thing happened numerous other times in human history?

Yep.

"But Dennis, that can't happen here because this is America!'

Maybe that's why the Creator of the Universe told us to lay up our treasure in heaven so moth, rust, debt bubbles and inflation won't destroy it?

Let's all remember to hold onto our treasure here on earth VERY loosely.  Because it could all vanish in an instant.