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RECAP: DEBT – WE GOT A PROBLEM
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RECAP: DEBT – WE GOT A PROBLEM

Debt Crisis Warning: It's Getting Serious

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InvestAnswers
Sep 28, 2023
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NUGGETS OF ALPHA

  • Global debt has jumped $10T in the first half of 2023 despite rising interest rates

  • Global Debt to GDP is expected to be at ~337% by the end of 2023

  • U.S., Japan, U.K., and France are responsible for 80% of the new debt in 2023

  • U.S. debt ceiling is eliminated until 2025

  • The debt per taxpayer now exceeds one-quarter of a million dollars

  • U.S. unfunded debt has risen by 14.79% in the last year

  • Half of the U.S. debt is scheduled to roll into a ~5% interest rate coupon

  • The total U.S. annual interest is twice the total market cap of Bitcoin

  • The world interest on debt is now 22% of annual GDP

  • BTC is a hedge against government spending and the risk of a great reset


Measuring all value based on a fiat currency is a problem. The rise in public debt is like nothing we have seen in history as we enter an era of accelerating debt and deficits. I will prove this with data in this study…be prepared to be alarmed!


This growth happened within the first six months of 2023 despite rising interest rates curbing banking credit.


This graphic always stuns me: pallets of stacked $100 bills compared to a human avatar in the red shirt, then zooming out to get a visual of how much $1 Trillion actually is:

  • $1B worth of cash or 8 pallets

  • $1T worth of cash


Imagine you have a house worth $500,000 with a mortgage of $300,000. Your debt-to-GDP ratio is 60%, meaning you have $60 of debt for every $100 of equity in your home.

Now, imagine

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