Completely and totally plagiarized from Jesse's Cafe Americain:
US Debt has grown to be about ten percent of World GDP (excluding the US) which is without historic precedent.
Approximately thirty percent of US debt is being held by non-US entities, in particular foreign central banks (on chart, "official").
The Developed Countries are holding approximately 70% of their reserves in US Dollars. The Developing Nations have less exposure on a percentage basis.
Above Charts from "Is the US Too Big to Fail?" by the Reinharts at VoxEU
Total US Dollar Credit Market Debt Now Stands at 350% of US GDP. This cannot be sustained. Certainly a certain portion of credit will be written off in defaults. But notice that the strategy of the US is not to make structural reforms but to try and restart the debt creation engine. This will require continued subsidies from foreign sources with waning appetites for US debt that can never be repaid.
Above chart courtesy of Ned Davis Research.
AAAARRRGGGHHHH!!
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