20 Reasons Why The Global Debt Time Bomb Will Explode Soon

Paul Farrell seems like one of the few columnists allowed to be down-beat at MarketWatch. His latest doom-laden epistle lists 20 very good reasons why the global economy is going to go bang any time soon. He is not the only one, as he cites both Bloomberg and Forbes publishing similar articles.

The number one reason is the huge amount of debt being accumulated by governments, or rather, by their central bankers who then pass on the debt to the taxpayers. Historical research has shown that once debt reaches 90% of GDP then a country is in serious danger of defaulting and its economy shrinks - switch off the hot air and the balloon quickly shrivels and gravity takes over.



The article quotes that the US debt-to-GDP ratio is currently 84% and rising. However, this assumes official figures but as the Federal Reserve has never been audited and is printing money like any good ponzi scheme, all backed by the US taxpayer, it isn't possible to really know how much debt the Fed has stacked up. With the fractional reserve banking system used by the Fed it is entirely possible that the 90% level has been already breeched. Most of the time, official revisions of economic indicators are done so that the worst of news is always in the rear-view mirror, but in this case most people are caught in the headlights of an oncoming juggernaut. With unofficial, yet respected, US unemployment estimates running at 17% compared to the official 10%, and with more and more people being employed by the government the tax revenue is also shrinking quickly. Government jobs do not bring in any net tax revenue as it is just government money moving from one department to another - only corporate and private enterprise bring in real tax dollars.

We are now seeing the dominoes line up with some smaller European countries close to defaulting. You can read Farrell's full article and see which ones affect you most. If you are able to do anything to protect your wealth then you should do so as there have been ample warnings.

Why have the banksters decided to destroy the wealth of the first world nations? That's coming next...