Tuesday, October 11, 2016

World Debt Hits An All-Time High
Of $152 Trillion
Sovereign Man highlights recent thoughts by hedge fund manager Ray Dalio* on the thesis that the debt supercycle that has lasted for decades is now coming to an end - that there is going to be a "big squeeze" . Dalio: "The biggest issue is that there is only so much one can squeeze out of a debt cycle, and most countries are approaching those limits." .. The largest economies in the world– Japan, Europe, the United States, China are racking up record amounts of debt & absolutely nearing those limits .. the International Monetary Fund warns that global debt has hit an all-time high of $152 TRILLION - That’s an astounding figure that’s nearly TWICE the size of the world economy .. Dalio thinks that the not only government debt, corporate debt & household debt, but also pension & healthcare obligation have now become impossible to pay .. Dalio identifies the potential for a big squeeze  - a crash in bond prices could easily wipe out bank balance sheets around the world.
LINK HERE to the essay

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