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The Biggest Debt on the Planet - $217,000,000,000,000

Don’t worry, that’s not the debt owned by a single person, not even by a single business – it’s the collective debt of everybody on the planet!  According to the Institute of International Finance, global debt has reached a record high of $217 trillion – a massive 327% of the world’s annual economic output.  While most individuals and business owners can find it difficult enough to get their heads around their own personal or business debt, understanding global debt presents even more of a challenge – after all, the number are mind-boggling.  Then there’s the question of “who is global debt owed to?” – little green men on another planet, perhaps? 

Politicians in power in all countries borrow on behalf of their governments, creating government debt.  As the elite few persuade governments to borrow money, those governments have to raise taxes in order to service those debts.  This results in money being transferred into government coffers and from there into the hands of the elite few.  This practice has been going on for generations with the world getting further and further into a debt that’s virtually impossible to settle.  It results in wealth being funnelled to the very top of the global wealth pyramid in a system that designed to make the rich even richer and the poor even poorer.

Year on year, we see the gap between the wealthy and the poor increasing and we’ve now reached a stage in which the eight richest people in the world have as much wealth as the poorest 3.6 billion people on earth (half of all humanity).  This situation hasn’t come about by mistake, either, it’s what the monetary system was designed to do.  The debt-based Federal Reserve is doing what it was designed to do and, no matter what the politicians say, there will be no permanent solution to the debt problem without radical changes.

The situation in the US clearly demonstrates the situation faced by America and other countries operate in the same way.  Up to $500 billion in taxes have to be collected and used to service the debt before the American government can think about spending a single cent on health care, roads, infrastructure and the military.  The debt rate continues to pile up at more than $100 million every single hour and what’s more alarming is that the US government will add more than a trillion dollars to the national debt again in 2018. 

This is clearly an unserviceable level of debt and, in an attempt to make it easier to understand exactly what’s going on, just imagine if you could borrow a million dollars today and oblige your children to pay it off – would you do that?  Of course not, but this is exactly what’s happening on a national level in countries around the world. 

One of the worst aspects of this is that governments don’t actually have to borrow money in this way, but any suggestion that this is the case will upset the few people who are making trillions out of the current global financial system!  We’re living in the closing stages of the biggest debt bubble in the history of the planet which is likely to eventually lead to come crashing down in the biggest financial crisis ever.  When that day comes we’ll be faced with the choice of rebuilding the unfair, flawed system or starting from scratch and putting a better, fairer system in place for the future. 

While this is a complicated subject, it does service to put personal debt into perspective a little.