Debt Grows 3.5x Faster Than GDP – “Big Hole Likely To Cave In Before We Claw Our Way Out”

Monday, April 18, 2016
By Paul Martin

Via MauldinEconomics.com,
ZeroHedge.com
04/18/2016

The Federal Reserve, the European Central Bank, the Bank of Japan, and the People’s Bank of China have been unable to gain traction with their monetary policies…. Excluding off balance sheet liabilities, at year-end the ratio of total public and private debt relative to GDP stood at 350%, 370%, 457% and 615%, for China, the United States, the Eurocurrency zone, and Japan, respectively…. The debt ratios of all four countries exceed the level of debt that harms economic growth. As an indication of this over-indebtedness, composite nominal GDP growth for these four countries remains subdued. The slowdown occurred in spite of numerous unprecedented monetary policy actions—quantitative easing, negative or near zero overnight rates, forward guidance and other untested techniques.

Now think about this, gentle reader. We’re digging a great big hole that is likely to cave in on us before we manage to claw our way back out of it.

The Rest…HERE

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