Global Debt Has Risen From $80T to $210T, 12%/Year While GDP Only 4%; FED Has Created $3T Out Of Thin Air

From Kyle Basss interview, and chart from BNN today. Global debt has grown in the last 9 years from $80T to $210T, i.e. at 12% year, while global GDP has grown at 4%. Something has to give.

Germany has defaulted twice in the last 100 years, it has not recapped its banks yet, only the U.S. and U.K. have. Europe's banks are 3X as levered as U.S. banks today.

Japan: the next place that is going to fall. Single worst on balance sheet sovereign debt problem in the world, population decline, will lose 27M in the next 40 years, worst demographics in the world. Japan spends 50% of tax revenue on debt. If rates raise, they are toast.

The Fed has now created $3T out of thin air (on its balance sheet), and $6T between the Fed and the ECB.

"Capitalism without bankruptcy is like Christianity without hell"