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United States All Sector Debt At $80.8 Trillion; 381% of GDP

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@fhk007
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In one of my earlier articles, I had talked about U.S. government debt, which has surged to $26 trillion.

Well, U.S. all sector debt has skyrocketed to $80.8 trillion. This further underscores my view on the U.S. being an over leveraged economy.

Not that other countries are better. According to The Institute of International Finance, global debt to GDP surged to 331% as of July 2020.

There is a reason to increasingly talk about debt. The U.S. Congressional Budget Office expects government debt to increase by another $13 trillion between 2021 and 2030.

Therefore, by 2030, U.S. government debt will surge to $40 trillion. In addition, in order to keep consumption driven growth going, overall debt will also increase.

The fear is that governments are getting into an inescapable debt trap.

Of course, big governments will not go bankrupt officially. The best way is to inflate their way out of the massive debt burden.

If the financial crisis of 2008-09 was big, we are staring at a bigger crisis in the coming decade. It would also imply a big loss of confidence in fiat money.

I am therefore "Very Bullish" on the future of cryptocurrencies.

I am also bullish on hard assets like gold and silver.

It also makes sense to remain diversified across currencies. However, all fiat currencies are in the same boat.

Posted Using LeoFinance Beta