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World Economists Are Asking... Where Is The Global Growth Going To Come From?

Posted by Brian Panes on

The question is being asked by every Austrian economist that has written a blog in the last 60 days.

Since 1971 when gold was removed from backing the world currency, the US dollar, all currencies worldwide are borrowed into existence and an interest rate is applied to that borrowed currency. If the GDP of that country is not greater than the interest incurred, then a deficit occurs and that keeps on growing until it can be paid off.

The average fiat currency only lasts approximately 40 years and from the detailed figures below, you can understand why. Growth only comes from energy expired and not from money being printed out of thin air.

In the developed world, the public and private debt since the world financial crisis has risen 36% to 265% of GDP (Bank of International Settlements). Between 1970-1979, the corporate, government and individual debt was at 140% of GDP and now it stands at 250%. The World Government Debt presently stands at US$220 trillion.

Worldwide, there is 85 identities that earn more than the 3.5 billion poorest people on the planet. In the US, 400 families are worth more than $2.5 trillion, which indicates that all the wealth is in the hands of a few, and ultra low interest rates only benefit the few.

With a dramatic slowdown in China, the Baltic Dry Index is at its lowest in 40 years, rail freight in the US at a historic slow point and highway truck manufacturing being down 80% year on year, it tells me that the middle class income earner has no currency left after paying his debt and taxes.

Only holding and saving in precious metals (silver and gold) will stop you from being financially destroyed in the coming years! An interest rate hike will kill the economy! The cracks are already beginning to open...