#McKinsey & Co Implies Mother Nature Asks #Humanity To Reschedule Global Debt

McKinsey & Co - Debt And (Not Much) Deleveraging 

Seven years after the bursting of a global credit bubble resulted in the worst financial crisis since the Great Depression, debt continues to grow. In fact, rather than reducing indebtedness, or deleveraging, all major economies today have higher levels of borrowing relative to GDP than they did in 2007. Global debt in these years has grown by $57 trillion, raising the ratio of debt to GDP by 17 percentage points (Exhibit 1). That poses new risks to financial stability and may undermine global economic growth.

A new McKinsey Global Institute (MGI) report, Debt and (not much) deleveraging, examines the evolution of debt across 47 countries—22 advanced and 25 developing—and assesses the implications of higher leverage in the global economy and in specific sectors and countries. The analysis, which follows our July 2011 report Debt and deleveraging: The global credit bubble and its economic consequences and our January 2012 report Debt and deleveraging: Uneven progress on the path to growth, focuses on the debt of the “real economy”: governments, nonfinancial corporations, and households. It finds that debt-to-GDP ratios have risen in all 22 advanced economies in the sample, by more than 50 percentage points in many case. Read More.

Why Is Mother Nature Crying About Global Debt Expansion?

Humanity's Question: To be, Or not to be?

WHETHER IT IS NOBLER IN THE MIND?

(Special Report)

First Financial Insights

THAT IS THE QUESTION...

 

Today we are republishing a  commentary that was posted back in January 2013. The post is even more relevant today, as the critical issues we face as a species are escalating almost it seems beyond control. Reports are also being made by various LEGITIMATE groups including NASA, UN bodies and the White House and Pentagon. These reports are posted through-out our affiliated blogs and may be searched by keyword . Moreover, let's not forget too, that Stephen Hawkings sits on a committee that is actually planning "end of world events", while The Bank of England  is calling for a wholesale change in the dogmas of classical economics - as the stresses of infinite growth are self-evident in so many countries around the world. 

As a further result, the possibility that the EU, Japan, China and other third world nations could financially collapse is a very real danger that could be sparked by an abrupt climb in global interest rates. Many events at any moment could spark this rapid rise, that would cause the greatest and most unprecedented collapse in asset values around the world where credit and banking bubbles in real estate and market investments, exist almost everywhere - another dark age looms large on the horizon.

Economics is not the only cancer that has terminal implications. Overpopulation and unbridled industrial destruction of the biosphere are crossing over to the exponential phase. Should the average global temperature rise just a mere 2 degrees C., some experts say we risk triggering a methane bomb that yields the same consequences of the Permian Extinction's climate conditions  - over 95%  of life on the planet was wiped out in short order.

Words of Science 

Read More...

MARKET ALERT - China in Trouble - Platinum Wealth Partners

Thanks to our Affiliate - Platinum Wealth Partners

 

Default of a Chinese Bond:Isolated event or the beginning of something bigger?

It finally happened. A Chinese domestic bond has defaulted. It was the first default since the Chinese central bank (PBOC) started regulating the market in 1997. The unlucky company was Shanghai Chaori Solar Energy Science and Technology (Chaori). The major question though is this a sign of healthy maturing market or the beginning of a major problem?

If you had to choose allow a bond to default, Chaori was certainly a prime candidate. First it is small. It has only 1,500 employees. Second it is a private company, not a large state owned firm. Third, it is in the struggling solar industry with substantial over capacity. Fourth, its issues were well known. Some sort of default was expected. Trading in the bonds was suspended last June. At that time they were trading at only 50% of their face value. The total issue is $160 million and the missed payment was only $15 million.

China’s premier Li Kequiang warned that Chaori was not the last. He said on 12^th March last week that future defaults of financial products are “unavoidable”. He pointed out that allowing defaults was a natural part of the financial deregulation process. There is also the issue of moral hazard, which the authorities are trying to address. In essence if you don’t allow companies to default, the markets assumes that they will never take place. With the certainty that companies cannot go under, investors will continue to pour money into risky assets.

(Read More)

   What Me Worry?

 

Our bets are that this is just the beginning, as it was long 

overdue. There are so many cracks in the portfolio that it can 

only get worse. Recently we observed the fall in copper price, a BIG signal that the real economy is suffering. As  goes China - so goes the global economy. Put this at the top of your watch-list - as the walls come tumbling down

Platinum Wealth Partners

March 19, 2014 

This is not looking good - for anyone, anywhere.

.

Dr Peter G Kinesa

March 19, 2014