Debtors’ Prison: Global Debt Has Grown $57 TRILLION Since 2007 With 100 Percent Of Sovereign Debt Monetized
by Anthony B. Sanders, Contra Corner p>Now that the Greece default crisis is on temporary hold (they will be back again), it is time to turn our focus to the GLOBAL debt market.
Since the subprime mortgage crisis and Lehman failure, global debt has grown by $57 trillion since 2007.,raising the ratio of debt to GDP by 17 percentage points.
Here is a nice chart from McKinsey & Company that shows the relative rise of PUBLIC SECTOR debt relative to HOUSEHOLD debt. That is, governments borrowing money on YOUR BEHALF that you are now liable.
Couple this chart with the fact that Central Banks are monetizing 100 percent of sovereign debt.
We now in a modern day debtors’ prison system, except that government is borrowing money for which households are responsible.