As the end of the year begins to approach, the global cumulative debt will soon hit $255 trillion. Consequently, some observers are beginning to note that this highlights some of the traditional monetary market’s failings.
Global debt about to reach $255 trillion
Specifically, this data comes from the latest figures stemming from the Institute of International Finance. Moreover, the information is available for the public to review in the firm’s updated version of its Global Debt Monitor.
Furthermore, this data shows that the global cumulative debt will have grown substantially over the past year. In fact, the global debt will reach around $255 trillion by the end of 2019. Notably, this represents an increase of roughly $12 trillion just since the end of last year.
One of the driving factors in the increasing global debt accumulation is that of the US. The United States alone has a current national debt of around $23 trillion, which amounts to around a tenth of the international total.
This is something which has seen a lot of criticism, both from cryptocurrency circles and other financial observers. For example, even Jerome Powell, the chair of the Federal Reserve, has said that this is a problem, calling the debt trajectory ”unsustainable”.
Nevertheless, Jerome Powell also said that the doesn’t consider there to be any ”critical problems” with not paying off this growing amount of national debt.
$12 million worth of debt for every Bitcoin that will ever exist
The potential failings of the traditional markets, in creating an ever-increasing amount of global debt, is perhaps most obvious when compared to the new emerging methods of payments and cryptocurrencies.
For example, the global debt amounts to roughly $12 million worth of debt for every Bitcoin that will ever exist. In case it needs to be said, the combined international debt has never before been so high.
Some observers are also pointing out that fiat currencies and the traditional monetary system holds fair more drawbacks than merely the growing international debt. For example, monetary system relying on actors such as central banks make them prone to manipulation.
Just this week, Trace Mayer recently spoke to listeners in the Tales from the Crypt podcast about the importance of claiming one’s ”monetary sovereignty”.
”Are you going to claim your monetary sovereignty? Hold your own private keys? Run your own full node? That’s how you fight the [monetary] war today,” Mayer said.
Rasmus Pihl is a writer for Toshi Times by day and an avid follower of the blockchain industry by night. Rasmus holds a Bachelor’s Degree in Marketing from the Gothenburg School of Business, Economics, and Law and runs a Swedish marketing consulting firm. Moreover, when he isn’t writing for Toshi Times, traveling, working or changing the world in some other capacity, Rasmus is more than likely caught up in postgraduate studies.