You may well have seen in the news the last couple of days that global debt has reached another all time high. After climbing to astonishing $247 trillion when combining public debt of around $60 trillion and non-financial sector debt of about $186 trillion. This eye watering figure also means that for the first time ever there is now officially 3 times more debt in the world than money.
It has been reported that this astounding level of debt is causing major cause by investors on top of ongoing concerns about the Federal Reserve’s monetary policy.
Is the global economy coming to an end?
According to the CIA, the total amount is $80 trillion if you include “broad money.” Broad money its not exactly physical cash but rather accessible cash so things such as checking accounts, savings accounts, money-market accounts. Anything which is not considered physical but you can make a bank transaction digitally and use that as money,
If you include this figure then total estimated value of all the money in the world is $80 trillion. The figures pales into insignificance when compared to the aforementioned global debt figures.
3 Times More Debt In The World Than Money
CNBC & Bloomberg have reported the news of this increase in global debt figures, it is also claimed that this figure has rose $29 trillion since 2016. Meaning for the first time ever there is 3 times more debt in the world than money.
Once again this seems like a significant argument as to why Bitcoin and cryptocurrencies are the future of our financial systems. Time and time again governments have failed to run a successful monetary system and now we have money backed solely by debt. Bitcoin was the first ever monetary system to not be backed by debt in the modern day.
Although the crypto markets as a whole have suffered this year, we constantly receive subtle reminders that the current financial system is failing and so far bitcoin looks to have the answers.