A news article that came out on Saturday had us thinking about total global debt which has now reached 226 trillion dollars. We wanted to take it a step further and take a look at some of the things troubling the world today and were shocked at the various debt bubbles and other issues that may lead to a catastrophic failure of economic systems by 2030.
Let’s take a look at some of the issues and since Covid-19 is in resurgence right now, we’ll start with a look at medical debt. According to CNBC, one in three people in the U.S. carry medical debt:
“There are so many millions of people impacted by medical debt, and it’s a growing problem,” said Jeff Smedsrud, co-founder and president of insurance for HealthCare.com.
CNBC.com
The total outstanding medical debt in the United States is estimated at $140 billion according to the NY Times.
Another hot topic right now is student loan debt because President Biden campaigned on eliminating some or all of that debt and now seems to have forgotten his campaign promise. What’s worse is the current administration is eliminating the moratorium on debt payments it had initiated due to Covid despite the virus in resurgence across America right now. Total student loan debt is currently at $1.75 trillion and growing 6 times higher than the U.S. economy.
Third, let’s take a look at total U.S. corporate debt. According to SPGlobal.com:
Rated U.S. companies issued $2.122 trillion in bonds during 2020 to make up for the pandemic-induced shortfall in revenues, according to LCD. The record annual total was up 59.7% from the 2019 figure.
SPGlobal.com
Lastly, we should all be familiar with the trillions of U.S. government debt which as of the end of August 2021, was at nearly $21 trillion!
What does this all add up to you may be asking? The answer to that question is best encapsulated in one phrase, “cumulative risk of catastrophic failure.” If and when a catastrophic failure occurs, it won’t be one single thing that causes the failure, it will be all the straws on the camel’s back combined with one more layer of straw that the camel can’t carry.
We encourage you do to your own research and due diligence and plan accordingly. We will continue to dive into these issues and report back periodically.
Stay tuned and stay solvent.