The debt of the planet is skyrocketing high

I have a neighbour. On a first sight, you would say that he is a very rich person because he buys a new car with a five-litre engine every year. But because it is the neighbour, I know that he hasn’t got finished his entrance staircase for years in the house where he lives and he is getting to the house by stepping on stocked wooden box pallets. So he is obviously not rich. The car is bought on the debt and that is regularly rotated. And that is the picture of the wealthy part of our planet in small, which is also not actually rich either.

The debt of the planet is skyrocketing high. Rating agency S&P published and analysis today according to which the debt of all the governments of the world is going to reach 44 trillion dollars in total this year. That is a debt added together for many years. As a curiosity, it is mentioning eternal bonds from the Napoleonic wars where the coupon remains valid. But the majority of debts has been created in recent years.

The governments are going to issue bonds for 6.8 trillion dollars this year only. That doesn’t sound good at all. Do you think that it can continue forever? Is it possible to have a debt of the planet in the year 2030 in the sum of 90 trillion dollars? It is! But only under the condition that there is going to be somebody still willing to lend. And that depends on our trust in the system and in politicians. Until there is trust it is going to run like a well-oiled engine. But when there is no trust everything is going to collapse like a house of cards. And the trust is very a fickle and perishable thing. It can vanish fast and unexpectedly and vice versa...

Marketa Sichtarova & Vladimir Pikora