The amount of global #debt is staggering. A simple average by country will indicate a 200% total debt to gdp, but if we take into account that the biggest economies in terms of gdp are also the most indebted, the ratio is closer to 400%. Japan, with 6X more debt than gdp, has an unsustainable profile, and as a consequence the Yen has depreciated almost 40% over the last 3 years. The fiat system requires financial stability to function, and the chart below shows anything but. The ability for central bankers to operate and control the inflation they have created is diminished by the debt countries issued and was absorbed by quantitative easing programs at a global scale. On Wednesday we’ll know if the fed takes a pause on rates or if they keep hiking. In the meantime, the Treasury will issue almost a Trillion dollars in new debt to be able to operate the country under the new agreed debt ceiling.
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