Exact Debt Figures from Europe and the U.S.

Counting the unprecedented amounts of private and personal debt in Europe and the USA is an impossible task. Just imagine first identifying all data input sources only to arrive at the point where debt data has to be offset with savings data - this is equa(tiona)lly difficult. As all this would be too much of an unreachable perfect world, I first throw a couple of figures - like in Texas Hold'em poker - on the desk before telling you the exact amount of the Western world's debt.

• World GDP: $50.000.000.000 (TRILLION)
• US GDP: $14.000.000.000 (TRILLION)
• Notional value of OTC derivatives >$700.000.000.000 TRILLION
• Unfunded US liabilities: > $134.000.000.000.000 (TRILLION)
• 2009 US Deficit: who knows (after all budgetary tricks?)

I may remind readers that the 10 most-indebted countries in the world are the USA by a long shot, followed by 9 European nations. And now after the jump, see the exact figure of Western debts.

In my humble opinion the debt is:

SIMPLY TOO MUCH TO REPAY.
Please prove me wrong.

Once we are exponentially creating new TRILLIONS, macro data is no more guidance for a manipulated stock market, where the privileged few appear to have a pre-order order-flow monitoring in operations. Ironically it's said HFT (high frequency trading) computers trashing the debt system where it's not anymore about investing into a company's future but about moving the Himalayas everyday in order to take home a cobble stone. Can somebody dig in the archive when the first 100 million hostile takeover filled business papers' pages? I bet it wasn't more than 25 years ago.
It makes no more sense to bet on a get-out-the-dollar card in the monopoly of debt played nowadays. Federal Reserve Notes will fade sooner than most of us believe. Better be out several months ahead then 1 day too late. The Euro may be around a little longer than the Sterling, which may share its last ride with the USA. The faster this biggest write-off in history is behind us, the earlier one could draw plans that include the lessons learned in this global financial meltdown.
One thing is undeniably correct: All unbacked paper currencies devalue more than 90% within an average human life-span. In most cases this happens much faster. To now begin again another draft for the modification of a sure-to-fail fiat money concept that always ended in hyperinflation since 1720, when John Law started financing the French king's parties in specie currency, is no different than trying to plant palm trees in Antarctica.
Why is there no discussion of a metal standard among the armies of economists that would shine out from the mass accepting fiat currency without questioning it first?
UPDATE: The financial Tsunami may arrive quite soon, if this FASB proposal becomes legislation, forcing all risks on the balance sheets of banks off at mark-to-market.

Comments

[ilovesum:]

couldn't agree more ...

Aug 03 06:27 PM

[Vox Rationalis:]

The sky is falling! The sky is falling!

Aug 03 10:41 PM

[Poborsky:]

Why is there no discussion of a metal standard among the armies of economists?

Try reading the articles by Peter Schiff.

Aug 04 12:54 AM

[ebworthen:]

Yet another writer trying to expose the wizard behind the curtain, really now!

But seriously, the only way to repay the debt is for a lot of people to die, i.e. - have a nice big war.

Sad, but true.

Aug 04 10:51 AM