To The Moon

Global debt: $305 trillion:

• Corporations: $161.7 trillion

• Government: $85.7 trillion

• Individuals: US$57.6 trillion

Which countries have the most debt?

• US $30.11T

• China $14T

• Japan $10.17

• France $3.14T

• Italy $2.87T

• India $2.7T

Which countries have enough money to pay back debts?

Any value greater than 100 percent indicates a country is spending more than it is making.

Debt to GDP ratio:

• Japan 239.1%

• Greece 197%

• Singapore 165.1%

• Italy 134.8%

• US 116.1%

Singapore is in a unique position: $Straits Times Index(STI.SI)$

• When a bank receives a deposit from a saver, this is recorded as a liability on its books as it is considered as a "loan" from the saver. When the bank lends out the money, this is recorded in its books as an "asset" because it has given a loan to a borrower.

• As a major financial centre, Singapore receives large inflow of capital from overseas and a substantial portion of this money is deposited with its banks. This is recorded as external liabilities or borrowings. That means that much of the so-called gross debts reflected in the Wiki article are, in fact, deposits kept in Singapore banks by overseas banks and depositors.

• This money is then recycled by the banks to lend to big overseas borrowers when they take up loans from Singapore-based lenders. Once that happens, it becomes part of Singapore's external assets.

• A reflection of Singapore's stature as a major international financial centre.

With the ever increasing global debt, the main outcome is inflation. An ideal inflation rate is 2% per year. However, the latest US Consumer Price Index (CPI) stands at 4.9%, which is more than double the norm of 2%. Therefore, inflation still has a long way to go to ease back to the norm.

How does US debt rank compared with the rest of the world?

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