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An Unbelievable History of World Debt!
Massive International Debt Crisis
A picture is worth a thousand words and this particular one is worth a couple of Trillion dollars. I thought this map was incredibly important. Most Americans have no understanding of how much debt the world as a whole has taken on in the last couple of years. In just over 40 years from 1970 to present day nearly every major country in the world has taken on massive loads of debt which they have never done historically. These pictures are about the best example I can find. The inevitable result debt accumulation is inflation. Countries that have large debt loads are faced with four options. (1) Pay of the debt, (2) Default on the debt, (3) Renegotiate the debt, or (4) Inflate their money.
History of the Debt Crisis
Over the past 1200 years of economic history, there have been a few cases of outright default, an even smaller number of renegotiations, and next to no repayments of debt. On the other hand in just the 20th century alone we see between 50 and 100 cases of countries using inflation and hyperinflation as their means of destroying their debt load. Indeed inflation is one of the best ways to steal from the lender. Let say for example that US has a currency supply of $1 trillion and borrows $100,000, or 10% of the entire currency supply. If the US over the next ten years increases the currency supply to $2 trillion. They have reduced the $100,000 debt to only 5% over their total currency size, a 50% decrease. If they continue the pattern of inflation they will inevitably reduce the debt to next to nothing.
What is so significant about the pictures above is that a majority of the countries in the world have taken on massive debt loads that are nearly impossible to repay at this point or they as a country do not have the willpower to repay them. This effectively means that we could have several countries go into hyperinflation at the same time, which will make the inflationary crisis ten times as bad. In the end, the inflation that inevitably will stream from this massive accumulation in debt will cause commodities like gold and silver to soar. This will make investing in silver and gold even more attractive.
