Why You Should Prepare for a $247 Trillion "Debt Bomb Implosion"
Even a U.S. Supreme Court nominee can experience debt problems
The amount of global debt has reached a precarious level. In the U.S. alone, federal debt has more than doubled in just the past 10 years. But there's much more to this dangerously unfolding debt drama.
The world's debt levels appear to be nearing a historic crisis.
On June 29, our July Elliott Wave Financial Forecast said:
When the biggest debt deflation of all time rears its head, the economy will contract sooner and faster than nearly all economists think possible.
Worries about a huge debt implosion applies to individuals in addition to nationally and globally.
Let's touch on individual debt first.
You might be tempted to think that the majority of people who get into debt trouble are the irresponsible. Hardly. The problem of debt is way more far-reaching.
Less than two weeks after the July Financial Forecast warned of "the biggest debt deflation of all time,"
It appears even nominees to the highest court in the land aren't immune to getting up to their eyeballs in credit card debt.
Brett Kavanaugh, President Trump's nominee to replace retiring Supreme Court Justice Anthony Kennedy, had accumulated somewhere between $60,000 and $200,000 in debt on three credit cards and one personal loan by 2016...
Kavanaugh's most recent disclosure shows no credit card debt for 2017, but the fact remains that individuals from all spectrums of society can get into trouble with debt.
Indeed, credit card debt among U.S. consumers is north of $1 trillion, the highest level ever. According to data from Magnify Money, consumers paid nearly $104 billion in credit card interest and fees in the 12 months that ended March 31.
Besides credit cards, there's the looming crisis in student loan debt, and subprime car loans is another ticking "debt bomb."
Shifting to debt on a worldwide scale, the Washington Post said this on July 15:
The $247 trillion global debt bomb
Since 2003, global debt has soared. As a share of the world economy (gross domestic product), the increase went from 248 percent of GDP to 318 percent. In the first quarter of 2018 alone, global debt rose by a huge $8 trillion.
In the U.S., public debt has steadily climbed during the past 40 years with the amount more than doubling in the past decade, as this Fed chart shows:
As you can see, federal debt is more than $21 trillion.
Right now, EWI's research is updating subscribers on the likely consequences of a historic "debt implosion.
How You Can Survive the Debt Implosion
A historic debt implosion is unfolding as we speak. What does it mean for U.S. stocks? Find out inside this free excerpt from our July 2018 Financial Forecast.
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