The single biggest issue for the world today is that there is too much debt in the financial system. Some eye-water facts:
Globally the debt to GDP ratio is 322%.
Amongst G-7 nations, the numbers are striking.
- The U.S.’s Debt to GDP is 106%
- Germany’s Debt to GDP is 61%
- Japan’s Debt to GDP is 196%
- The United Kingdom’s Debt to GDP is 85%
- Canada’s Debt to GDP is 89%
- France’s Debt to GDP is 98%.
The only one that looks remotely decent is Germany and that’s because the country has been aggressively paying down its debt. During the 2008 crisis, Germany’s debt to GDP skyrocketed to 82% as its economy collapsed and it went on a Debt binge.
Put another way, of the seven largest developed nations, only one of them has a debt to GDP below 85%… and that is very likely to change during its next major recession.
Again, the world has too much debt. No major nation is an exception.
Now there are three ways to deal with excessive debt.
1) Pay it off through growth or fiscal restraint.
2) Default/ restructure.
3) Attempt to inflate it away by debasing your currency.
Of these, the only viable option is #3.
This sounds like a complicated idea, but really, inflating the debt away means money printing.
Think of it this way. Let’s say you owe $1,000 in debt. Now imagine that the dollar loses 50% of its value. You still owe $1,000 in debt, but because each unit of debt is worth so much less, your REAL cost of the debt is only $500 in today’s terms.
This is the only option major nations have today. And it’s one that policymakers LOVE to use as the COVID-19 pandemic has revealed.
Consider the following…
In response to the Great Financial Crisis of 2008, central banks printed $7 trillion in new money from 2008 to 2012.
In response to the COVID-19 pandemic, they’ve printed almost as much money ($6 trillion and change) in 2020 alone.
Again, the COVID-19 pandemic has revealed that going forward policy maker’s response to every problem will involve printing money.
This is going to unleash an inflationary storm that will send inflation hedges like gold and silver (and their miners) THROUGH THE ROOF.
On that note, we just published a Special Investment Report concerning FIVE contrarian investments you can use to make precious metals pay you as inflation rips through the financial system in the months ahead.Paragraph
The report is titled Survive the Inflationary Storm. And it explains in very simply terms how to make inflation PAY YOU through care investing in the precious metals sector and precious metals mining.
We are making just 100 copies available to the public.
There are just 3 left.
To pick up yours, swing by:
Chief Market Strategist
Phoenix Capital Research