Global Debt Time Bomb explodes soon

Topics in this category pertain to planning. Discussions include how to prepare yourself, your family and your community for catastrophes and what you plan to do when they hit you.

Moderator: ZS Global Moderators

absinthe beginner
* * * * *
Posts: 1534
Joined: Sun Jan 05, 2014 11:05 am
Favorite Zombie Movies: Shawn of the Dead
Location: Colorado

Re: Global Debt Time Bomb explodes soon

Post by absinthe beginner » Fri Nov 01, 2019 9:29 pm

Interesting that in places from Lebanon to Chile, the ordinary people are taking to the streets en masse as they become more economically squeezed and get fed up with corrupt, out of touch elites who have run their countries into the ground.

https://english.alarabiya.net/en/featur ... banon.html

absinthe beginner
* * * * *
Posts: 1534
Joined: Sun Jan 05, 2014 11:05 am
Favorite Zombie Movies: Shawn of the Dead
Location: Colorado

Re: Global Debt Time Bomb explodes soon

Post by absinthe beginner » Fri Nov 08, 2019 6:48 pm

Global debt tops $188 TRILLION dollars.

https://www.zerohedge.com/personal-fina ... d-has-ever

The world is now 188 trillion dollars in debt, and that number continues to grow rapidly each year.

It is a form of enslavement that is deeply insidious, because most of those living on the planet do not even understand how the system works, and even if they did most of them would have absolutely no hope of ever getting free from it. The borrower is the servant of the lender, and the global financial system is designed to funnel as much wealth to the top 0.1% as possible. Of course throughout human history there has always been slavery, and the primary motivation for having slaves is to extract an economic benefit from those that are enslaved. And even though most of us don’t like to think of ourselves as “slaves” today, the truth is that the global elite are extracting more wealth from all of us than ever before. So much of our labor is going to make them wealthy, and yet most people don’t even realize what is happening.

boskone
* * *
Posts: 779
Joined: Wed Oct 17, 2012 4:07 pm
Location: Aggieland-ish

Re: Global Debt Time Bomb explodes soon

Post by boskone » Fri Nov 08, 2019 7:44 pm

absinthe beginner wrote:
Fri Nov 08, 2019 6:48 pm
Global debt tops $188 TRILLION dollars.

https://www.zerohedge.com/personal-fina ... d-has-ever

The world is now 188 trillion dollars in debt, and that number continues to grow rapidly each year.

It is a form of enslavement that is deeply insidious, because most of those living on the planet do not even understand how the system works, and even if they did most of them would have absolutely no hope of ever getting free from it. The borrower is the servant of the lender, and the global financial system is designed to funnel as much wealth to the top 0.1% as possible. Of course throughout human history there has always been slavery, and the primary motivation for having slaves is to extract an economic benefit from those that are enslaved. And even though most of us don’t like to think of ourselves as “slaves” today, the truth is that the global elite are extracting more wealth from all of us than ever before. So much of our labor is going to make them wealthy, and yet most people don’t even realize what is happening.
I think you skipped the really odd part: there are people--a lot of them--who think being in debt is good, so long as you can make the payments. :?

I don't get it.

I'm about to have to take out a car loan, and I'm really hating the idea...but I don't have a few thousand dollars just sitting around, my current truck's annual maintenance is most of a newer (not new) car's payments, so auto loan it is. :|

User avatar
Stercutus
* * * * *
Posts: 13591
Joined: Wed Feb 10, 2010 8:16 pm
Location: Time Out

Re: Global Debt Time Bomb explodes soon

Post by Stercutus » Fri Nov 08, 2019 8:16 pm

absinthe beginner wrote:
Fri Nov 08, 2019 6:48 pm
Global debt tops $188 TRILLION dollars.

https://www.zerohedge.com/personal-fina ... d-has-ever

The world is now 188 trillion dollars in debt, and that number continues to grow rapidly each year.

It is a form of enslavement that is deeply insidious, because most of those living on the planet do not even understand how the system works, and even if they did most of them would have absolutely no hope of ever getting free from it. The borrower is the servant of the lender, and the global financial system is designed to funnel as much wealth to the top 0.1% as possible. Of course throughout human history there has always been slavery, and the primary motivation for having slaves is to extract an economic benefit from those that are enslaved. And even though most of us don’t like to think of ourselves as “slaves” today, the truth is that the global elite are extracting more wealth from all of us than ever before. So much of our labor is going to make them wealthy, and yet most people don’t even realize what is happening.
Gosh I can't help but wonder if people who are rich take on debt? Does that make them slaved too?
You go 'round and around it
You go over and under
I go through

RoneKiln
* * *
Posts: 728
Joined: Sun Jun 07, 2009 3:20 am

Re: Global Debt Time Bomb explodes soon

Post by RoneKiln » Fri Nov 08, 2019 11:03 pm

The more powerful the tool, the more dangerous it is.

Debt is a very powerful tool. Wonderful things can be done with it when it's used correctly. Horrific things happen when it is abused.

I couldn't prove it, but I suspect a very frightening amount of debt is not healthy debt.
"Seriously the most dangerous thing you are likely to do is to put salt on a Big Mac right before you eat it and to climb into your car."
--Raptor

absinthe beginner
* * * * *
Posts: 1534
Joined: Sun Jan 05, 2014 11:05 am
Favorite Zombie Movies: Shawn of the Dead
Location: Colorado

Re: Global Debt Time Bomb explodes soon

Post by absinthe beginner » Mon Nov 11, 2019 3:21 pm

When central banks start assuring account-holders that they've got nothing to worry about, that's probably a good indicator you might need to yank your money out of the banking system.

https://www.aljazeera.com/ajimpact/leba ... 39796.html

Lebanese banking association says depositors’ money safe, no need for panic

https://english.alarabiya.net/en/busine ... -safe.html

absinthe beginner
* * * * *
Posts: 1534
Joined: Sun Jan 05, 2014 11:05 am
Favorite Zombie Movies: Shawn of the Dead
Location: Colorado

Re: Global Debt Time Bomb explodes soon

Post by absinthe beginner » Tue Nov 12, 2019 8:52 am

World's Ultra-Rich Preparing For Market Crash, UBS Warns

https://www.zerohedge.com/markets/world ... ealth-says

User avatar
raptor
ZS Global Moderator
ZS Global Moderator
Posts: 16804
Joined: Sun Mar 04, 2007 10:18 pm
Location: Greater New Orleans Area

Re: Global Debt Time Bomb explodes soon

Post by raptor » Tue Nov 12, 2019 1:05 pm

absinthe beginner wrote:
Tue Nov 12, 2019 8:52 am
World's Ultra-Rich Preparing For Market Crash, UBS Warns

https://www.zerohedge.com/markets/world ... ealth-says
The world's ultra rich have money planners who are always planning for a market crash. It is called a balanced portfolio. :D

User avatar
Stercutus
* * * * *
Posts: 13591
Joined: Wed Feb 10, 2010 8:16 pm
Location: Time Out

Re: Global Debt Time Bomb explodes soon

Post by Stercutus » Tue Nov 12, 2019 6:45 pm

raptor wrote:
Tue Nov 12, 2019 1:05 pm
absinthe beginner wrote:
Tue Nov 12, 2019 8:52 am
World's Ultra-Rich Preparing For Market Crash, UBS Warns

https://www.zerohedge.com/markets/world ... ealth-says
The world's ultra rich have money planners who are always planning for a market crash. It is called a balanced portfolio. :D
I guess I must be ultra rich too then?
You go 'round and around it
You go over and under
I go through

absinthe beginner
* * * * *
Posts: 1534
Joined: Sun Jan 05, 2014 11:05 am
Favorite Zombie Movies: Shawn of the Dead
Location: Colorado

Re: Global Debt Time Bomb explodes soon

Post by absinthe beginner » Wed Nov 13, 2019 8:14 am

Guess Who Is Preparing For A Major Stock Market Crash?

https://www.zerohedge.com/markets/guess ... rket-crash

absinthe beginner
* * * * *
Posts: 1534
Joined: Sun Jan 05, 2014 11:05 am
Favorite Zombie Movies: Shawn of the Dead
Location: Colorado

Re: Global Debt Time Bomb explodes soon

Post by absinthe beginner » Wed Nov 13, 2019 9:17 pm

World Debt Downgrade Warning – Moody’s

https://www.zerohedge.com/news/2019-11- ... ing-moodys

Moody's cuts global sovereign rating outlook to "negative" for 2020

https://www.reuters.com/article/global- ... SL8N27R3YG

User avatar
raptor
ZS Global Moderator
ZS Global Moderator
Posts: 16804
Joined: Sun Mar 04, 2007 10:18 pm
Location: Greater New Orleans Area

Re: Global Debt Time Bomb explodes soon

Post by raptor » Thu Nov 14, 2019 7:01 pm

Interesting Map at the link showing countries with AAA ratings as well as lower ratings.

https://www.thebalance.com/u-s-companie ... nds-417105
only two U.S.-based non-financial companies have higher credit ratings than the country itself: Microsoft and Johnson & Johnson.

RoneKiln
* * *
Posts: 728
Joined: Sun Jun 07, 2009 3:20 am

Re: Global Debt Time Bomb explodes soon

Post by RoneKiln » Thu Nov 14, 2019 11:10 pm

Stercutus wrote:
Tue Nov 12, 2019 6:45 pm
raptor wrote:
Tue Nov 12, 2019 1:05 pm
absinthe beginner wrote:
Tue Nov 12, 2019 8:52 am
World's Ultra-Rich Preparing For Market Crash, UBS Warns

https://www.zerohedge.com/markets/world ... ealth-says
The world's ultra rich have money planners who are always planning for a market crash. It is called a balanced portfolio. :D
I guess I must be ultra rich too then?
Compared to most of the world? Probably.

It amazes me how even minimal amounts of sense, financial knowledge, and discipline can catapult an American into the 1% elite of the world.
"Seriously the most dangerous thing you are likely to do is to put salt on a Big Mac right before you eat it and to climb into your car."
--Raptor

absinthe beginner
* * * * *
Posts: 1534
Joined: Sun Jan 05, 2014 11:05 am
Favorite Zombie Movies: Shawn of the Dead
Location: Colorado

Re: Global Debt Time Bomb explodes soon

Post by absinthe beginner » Fri Nov 15, 2019 9:58 am

Global Debt Surges Above $250 Trillion as U.S., China Lead Way

https://www.bloomberg.com/news/articles ... markets-vp

User avatar
raptor
ZS Global Moderator
ZS Global Moderator
Posts: 16804
Joined: Sun Mar 04, 2007 10:18 pm
Location: Greater New Orleans Area

Re: Global Debt Time Bomb explodes soon

Post by raptor » Fri Nov 15, 2019 11:43 am

RoneKiln wrote:
Thu Nov 14, 2019 11:10 pm
Stercutus wrote:
Tue Nov 12, 2019 6:45 pm
raptor wrote:
Tue Nov 12, 2019 1:05 pm
absinthe beginner wrote:
Tue Nov 12, 2019 8:52 am
World's Ultra-Rich Preparing For Market Crash, UBS Warns

https://www.zerohedge.com/markets/world ... ealth-says
The world's ultra rich have money planners who are always planning for a market crash. It is called a balanced portfolio. :D
I guess I must be ultra rich too then?
Compared to most of the world? Probably.

It amazes me how even minimal amounts of sense, financial knowledge, and discipline can catapult an American into the 1% elite of the world.
QFT

Becoming "wealthy" depending upon your definition of wealth can be as simple and making sure that you consistently spend less than earn. The key to "wealth" lies not so much in earned income (though clearly you need income) but rather retaining the wealth you do earn. The key to accumulating wealth lies in controlling expenditures.

As for being in the 1% it all depends upon the definition of the population.
Interestingly, Americans do not have to be extremely wealthy, in order to claim a spot among that 1%. According to the Global Rich List, a $32,400 annual income will easily place American school teachers, registered nurses, and other modestly-salaried individuals, among the global 1% of earners.
https://www.investopedia.com/articles/p ... -world.asp

Remember that when you see people shouting for the heads of the "rich" and "1%".

MPMalloy
ZS Member
ZS Member
Posts: 4554
Joined: Mon Aug 22, 2005 2:48 am

Re: Global Debt Time Bomb explodes soon

Post by MPMalloy » Fri Nov 15, 2019 3:13 pm

raptor wrote:
Fri Nov 15, 2019 11:43 am
RoneKiln wrote:
Thu Nov 14, 2019 11:10 pm
It amazes me how even minimal amounts of sense, financial knowledge, and discipline can catapult an American into the 1% elite of the world.
QFT

Becoming "wealthy" depending upon your definition of wealth can be as simple and making sure that you consistently spend less than earn. The key to "wealth" lies not so much in earned income (though clearly you need income) but rather retaining the wealth you do earn. The key to accumulating wealth lies in controlling expenditures.
All of this.

boskone
* * *
Posts: 779
Joined: Wed Oct 17, 2012 4:07 pm
Location: Aggieland-ish

Re: Global Debt Time Bomb explodes soon

Post by boskone » Fri Nov 15, 2019 8:11 pm

MPMalloy wrote:
Fri Nov 15, 2019 3:13 pm
raptor wrote:
Fri Nov 15, 2019 11:43 am
RoneKiln wrote:
Thu Nov 14, 2019 11:10 pm
It amazes me how even minimal amounts of sense, financial knowledge, and discipline can catapult an American into the 1% elite of the world.
QFT

Becoming "wealthy" depending upon your definition of wealth can be as simple and making sure that you consistently spend less than earn. The key to "wealth" lies not so much in earned income (though clearly you need income) but rather retaining the wealth you do earn. The key to accumulating wealth lies in controlling expenditures.
All of this.
Yup. When people measure their wealth in terms of new cars and the latest doodads, something's kinda wrong.

I could be biased, though, since I hate new cars (and the accompanying payments).

MPMalloy
ZS Member
ZS Member
Posts: 4554
Joined: Mon Aug 22, 2005 2:48 am

Re: Global Debt Time Bomb explodes soon

Post by MPMalloy » Fri Nov 15, 2019 8:33 pm

boskone wrote:
Fri Nov 15, 2019 8:11 pm
MPMalloy wrote:
Fri Nov 15, 2019 3:13 pm
raptor wrote:
Fri Nov 15, 2019 11:43 am
RoneKiln wrote:
Thu Nov 14, 2019 11:10 pm
It amazes me how even minimal amounts of sense, financial knowledge, and discipline can catapult an American into the 1% elite of the world.
QFT

Becoming "wealthy" depending upon your definition of wealth can be as simple and making sure that you consistently spend less than earn. The key to "wealth" lies not so much in earned income (though clearly you need income) but rather retaining the wealth you do earn. The key to accumulating wealth lies in controlling expenditures.
All of this.
Yup. When people measure their wealth in terms of new cars and the latest doodads, something's kinda wrong.

I could be biased, though, since I hate new cars (and the accompanying payments).
The sole thing I regret about what I've bought, is that I bought most of it on time.

Nothing else.

User avatar
raptor
ZS Global Moderator
ZS Global Moderator
Posts: 16804
Joined: Sun Mar 04, 2007 10:18 pm
Location: Greater New Orleans Area

Re: Global Debt Time Bomb explodes soon

Post by raptor » Sun Nov 17, 2019 2:30 pm

Buying long lived assets like cars and homes with debt whose life is shorter than the asset life is not a bad thing. As long as the interest rate is reasonable, the asset a necessity and the payments affordable; debt in this case makes sense drom a preservation of caputal viewpoint.

Paying cash for these items can significantly deplete cash reserves.

Not saying financing jewelry, vacations and geegaws makes sense; only that if you need a car for work then paying cash for an asset that should last a decade is IMO not neccessary.

MPMalloy
ZS Member
ZS Member
Posts: 4554
Joined: Mon Aug 22, 2005 2:48 am

Re: Global Debt Time Bomb explodes soon

Post by MPMalloy » Sun Nov 17, 2019 4:02 pm

raptor wrote:
Sun Nov 17, 2019 2:30 pm
Buying long lived assets like cars and homes with debt whose life is shorter than the asset life is not a bad thing. As long as the interest rate is reasonable, the asset a necessity and the payments affordable; debt in this case makes sense drom a preservation of caputal viewpoint.

Paying cash for these items can significantly deplete cash reserves.

Not saying financing jewelry, vacations and geegaws makes sense; only that if you need a car for work then paying cash for an asset that should last a decade is IMO not neccessary.
Yeah....I'm not being flippant, but it really seems to be 6 of 1 vs 1/2 dz often. Everyone should have cash reserves. Savings & a emergency fund, but not so large that someone leaves money on the table thru not investing/paying down debt.

I know this all boils down to a person's particular financial situation at any given moment, risk tolerance, quality of last night's sleep.

RoneKiln
* * *
Posts: 728
Joined: Sun Jun 07, 2009 3:20 am

Re: Global Debt Time Bomb explodes soon

Post by RoneKiln » Sun Nov 17, 2019 5:10 pm

Most people that I know significantly over buy when it comes to cars. Some people truly love cars, and in their case I get it. They are investing in more than transportation and it's a worthwhile investment for them. Most people just have a skewed baseline for what's "needed." They assume a large SUV or truck is required for a commuter vehicle despite extremely rarely utilizing the excess size or power of the vehicle. They assume a new car every 5 years is necessary.

Nothing wrong with someone that can both afford it and truly appreciate it buying new vehicles more than is truly necessary. There's a huge problem with so many people assuming it's a necessity, especially when they cannot really afford it.

The level of debt that Americans are taking out on cars is pretty scary. Most people could buy a little less expensive car and make it last a little longer. The impact on most people's financial health would be significant.
"Seriously the most dangerous thing you are likely to do is to put salt on a Big Mac right before you eat it and to climb into your car."
--Raptor

absinthe beginner
* * * * *
Posts: 1534
Joined: Sun Jan 05, 2014 11:05 am
Favorite Zombie Movies: Shawn of the Dead
Location: Colorado

Re: Global Debt Time Bomb explodes soon

Post by absinthe beginner » Mon Nov 18, 2019 9:03 am

RoneKiln said: The level of debt that Americans are taking out on cars is pretty scary. Most people could buy a little less expensive car and make it last a little longer. The impact on most people's financial health would be significant.
Subprime auto loan delinquencies are going parabolic in our "greatest economy ever."

https://wolfstreet.com/2019/11/13/the-h ... uto-loans/

User avatar
raptor
ZS Global Moderator
ZS Global Moderator
Posts: 16804
Joined: Sun Mar 04, 2007 10:18 pm
Location: Greater New Orleans Area

Re: Global Debt Time Bomb explodes soon

Post by raptor » Mon Nov 18, 2019 1:21 pm

This ability to roll a previous auto loan into a new car is a rather recent (last 20 years) trend. This likely also runs up the default rate.

https://www.thestreet.com/story/1325016 ... ences.html
absinthe beginner wrote:
Mon Nov 18, 2019 9:03 am

Subprime auto loan delinquencies are going parabolic in our "greatest economy ever."
Even shadowstats.come shows better unemployment numbers than a decade ago as well as 3 years ago.
http://www.shadowstats.com/alternate_da ... ent-charts


BTW this IPO is interesting. It is not too often that a country does an IPO for it mineral wealth. The valuation IMHO is way to high due to the volatility of the asset location. Yes the assets and cash flow may be worth $2 trillion but there risk discount for the assets should be at least 50% to 60%.

That and seriously the only time you sell a cash cow (like Aramco) is because the cow is not feeling well and you want to ensure receipt of the maximum value.
I will pass on the IPO at this price point.
https://www.reuters.com/article/us-saud ... SKBN1XR0K8

MPMalloy
ZS Member
ZS Member
Posts: 4554
Joined: Mon Aug 22, 2005 2:48 am

Re: Global Debt Time Bomb explodes soon

Post by MPMalloy » Tue Nov 19, 2019 11:48 pm

From Visual Capitalist: Optimism...& a word from Tony!

Post Reply

Return to “Contingency Planning & Preparation”