IMF: $3 trillion in “Over-Borrowing Now Threatens To Unleash a Wave of Defaults”

by | Oct 9, 2015 | Commodities, Headline News | 51 comments

Do you LOVE America?


    Global Economic Crisis

    The next great financial crisis may be only a short time away.

    As readers know, SHTF has routinely covered the bleak warnings and predictions of market insiders and critics of Wall Street and the Federal Reserve.

    Now, there is yet another indication that things are reaching a tipping point, and the system is all-too-vulnerable to collapse. Borrowers in states across the globe are under threat of default, and many would be unable to repay loans with even a modest adjustment in the interest rate.

    There is so much debt piled up all over the place, that things are absolutely in danger of coming unglued. The IMF is now hovering over the situation, warning of impending crisis.

    According to the London Telegraph:

    A poisonous “triad” of global risks is pushing the world to the brink of a new financial crisis, says stark IMF report

    Governments and central banks risk tipping the world into a fresh financial crisis, the International Monetary Fund has warned, as it called time on a corporate debt binge in the developing world.

    Emerging market companies have “over-borrowed” by $3 trillion in the last decade, reflecting a quadrupling of private sector debt between 2004 and 2014, found the IMF’s Global Financial Stability Report.

    This dangerous over-leveraging now threatens to unleash a wave of defaults that will imperil an already weak global economy, said stark findings from the IMF’s twice yearly report.

    Things are apparently teetering dangerously over the edge, with plenty of room to trigger further chaos in the developing world:

    The slightest miscalculation, they said, could collapse into a “failed normalisation” of interest rates and market conditions, wiping 3pc from the world’s economic output over the next two years.

    And there is plenty of crushing debt here at home in the developed world, too.

    Seven years after the financial crisis, a combination of lingering debt burdens in advanced economies, and vanishing market liquidity could result in a new credit crunch when conditions tighten.


    The world’s major central banks should ensure policy remains “accommodative” for fear of setting off a new wave of instability

    The IMF again urged the Federal Reserve against raising interest rates, even as they prove dangerously ineffective at repairing the economy:

    The report called on the Federal Reserve to hold off on its first interest rate hike in nine years …

    Only a few weeks ago, the World Bank warned the Fed not to raise interest rates, cautioning that the “Fed risks triggering panic and turmoil” in the market if it dares to step up from zero percent and perhaps the biggest monetary intervention in history.

    Read more:

    The End Game Has Arrived: ‘All Signs and Evidence Point to the Great Global Economic Reset’

    China Nears Global Reserve Status: “There Will Be a Reset of the Financial Industry”

    “Fed Risks Triggering Panic and Turmoil”: World Bank Warns Against Raising Rates


    It Took 22 Years to Get to This Point

    Gold has been the right asset with which to save your funds in this millennium that began 23 years ago.

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      1. Its going its going its gone
        Hurry up already the waiting is the worst part.
        I’m armed I’m feed I’ve stacked and stored. I am ready!!!!
        STAND NOW OR
        KNEEL FOREVER!!!!!

        • Been stacking so long I’m afraid of getting close to the pile

          • Mac, if you keep posting articles like this, you’re going to cause a certain someone’s head to explode.

            Keep up the good work!

          • Tell me about it that will be the death of most of us well trip on something and our preps will squash us like a bug Lol or well just pass away in our secret location noone will find us till we start to stink up the joint lol

          • Paranoid: Very funny !!! LMAO !!! 🙂

          • I can tell you that if you have an 8-foot ceiling, you can stack banker boxes 9 high. I am sitting beside a good number of such stacks right now.

            And yes, they will fall over if you don’t put the heaviest on the bottom and lightest on the top. Also, fill them completely or they will eventually sag and start to tip.

      2. I saw this House of Cards coming down in the late sixties. Hey, I took math. It was easy to see where this was going. Never could have imagined the cabal could have kept it propped up this long.

        Interest rates were always being tweaked up or down as central banks fine tuned their economies. Now a 1/4% will mark down a quadrillion funny money derivatives enough to crash everything. Wow.

        Gonna be some show. Watch out, don’t get crushed by everything falling around us.

      3. The money changers of the FED and central bank . The hawkers speculators of Wall Street.They were set up in a temple at one time and what was that guys name that knocked over there tables and drove them out.And what happened to that guy after he messed with them.And who was that guy that came out with the treasury note against the federal reserve note.And what happened to that guy. And his brother and his son . You go messin with the children of satan and I bet ya I know what’s gonna happen to you.

        • learn the difference of “there” and “their”.

          • Sorry was in a hurry didn’t recheck I can’t spell very good public school you understand

          • Knocked over they’re tables?

            • Theiyr’re.
              Because some people want to watch the world burn.

              • What is this a spelling bee

          • Their gonna declare Marshall law.

            Soon to be followed by Will and Holly law…

            And if you’re really up shit creek, Chaka law.

      4. And yours

        • Awww, don’t be too harsh.
          Only the other day I made the same mistake using your for you’re and then went one better by using BEAN instead of been.

          Oh dear.

      5. While these Zionist entities (IMF, Central Banks and their true master the BIS) are issuing these warning, the rest of the world is waiting for it to happen so we can clean the house and complete the uncompleted jobs. Please parasitic money exchangers crash it.

      6. Who the hell cares!

        They were supposed to be the BIG BOYS. All the gadgets and graphs that was to take the risks out of investing. Yeah, they put the risk right on us. When they begin to whine, give them a hit to the head with a rifle butt. “That will shut them up”, (John White).

        • If a debt is too big to be paid , it wont be paid.
          Something Dave Ramsey says over and over.

          So that leaves us with WW3 , right ?

      7. Happy Birthday,!!!
        On 10-10-2008, Mac opened this site, it had 3077 people read, or hits on this site. A total of three comments, so everyone can thank MAC for his ‘place ‘, I personally want to thank Mac for having a place for us to discuss, vent, postulate, opine, and even joke about the matters at hand. Ever since I visited the first time in early 08 (did not post for a long while), I knew this was what I wanted to be a part of, since we all have opinions on politics, religion, prepping and life in general, well it seems we have become like a family of sorts, even in a world that seems to get worse daily.
        I realized a few years ago, that humor would help this site be a little nicer, if we all can laugh at ourselves and others. Thus is the reason I post jokes here. Sure, I agree, sometimes I post too many jokes on one post, so I am going to limit it to just one per post, if less is more. And I have to say, there are a lot of great posters here that can post great information, you all have done an excellent job!!!!!

        I have noticed that there are a lot of new posters here, one piece of advice to all the newbies, read as much as you can of the past articles, tons of advice, tons of comments, and you can get the idea of us older posters and where we have been thru and said to promote this site. There is no STUPID QUESTION, so ask, many will respond. And if you post, be ready to have a THICK SKIN, because many will thrash you, paint you red, and one could leave in disgust, but some of us have endured for a long time, and we all enjoy POSITIVE input from everyone.
        Again, I say, if we all could be civil to each other, even if we disagree, well we agree to disagree, and I do with many here in one respect or another, but we are kinda like family here, seeing how my personal family has broken down, we all need to respect each other…
        To everyone here, take the time to THANK MAC for what he has running here, it is hard to find a place where we can comment without being condemned for what we say, and may all come out on the other side intact, we preppers will prevail and be the fore runners of what could happen, will happen, and rule as much as possible on the other side, since we are the ‘good’….
        Thanks again Mac.
        HAPPY BIRTHDAY!!!!!

        • Thanks Mac and all who post useful things here. Don’t post a lot myself but really appreciate those who do.

          • Yep

        • Mac,

          We here in Louisiana know what the ‘prepper lifestyle’ is all about and have been living that dream for a long time. I want to thank for this forum and for all the titillating, practical, insightful, cutting edge articles you keep posting. I don’t know how you do it but we all owe you and Tess one big ‘Thank You!’. I also want to thank all of you who share your thoughts, knowledge, insights, successes, failures, hopes and fears. Thank you all!

          From down in the Atchafalaya swamplands, Louisiana Eagle

      8. Get a good load carrying basket for your bicycle your going to need it before this is over

      9. Never mind the staggering National Debt. I don’t know why I bother to read about it. I will pay my bills and time will tell.

        What is the prayer of Saint Francis of Assisi (Isis)
        That AA (Alchoholics are not Anonymous) adopted.

        Change the things I can change.
        Accept the things I can not change.
        Wisdom to know the difference.

        • “Friedrich Schiller advocated the first part in 1801:

          „Wohl dem Menschen, wenn er gelernt hat, zu ertragen, was er nicht ändern kann, und preiszugeben mit Würde, was er nicht retten kann,”[17] or “Blessed is he, who has learned to bear what he cannot change, and to give up with dignity, what he cannot save.”

      10. I like this site too. I just blather on mostly attacking the system because this existing ongoing government tyranny just infuriates me. I probably have commented here 2 or 3 years off and on. I’ve learned many tips here also. Thanks for the chance to blow off steam without being censored. Good job Mac and Happy Birthday shtfplan!

      11. for eight years we have heard the end is near. But 95 million brain-dead “investors” cannot be wrong…cannot be allowed to be wrong. In the land of the lemmings, where more debt is good, and even moar debt, is more better, what could go wrong? Millions now sit at home, and watch TV; no need to work with all the handouts. They eat potato chips, drink beer, and get free health care, including a little cart to ride around in when they weigh 400lbs and they amputate their useless legs.

        Everyone knows the Fed will defend the markets. Lousy earnings are met with news of massive new stock buybacks using cheap Fed credit. Bears who try to short bad news are gored every day. This is the ‘new normal’ and only a total collapse will scare people into selling stocks. The Fed would have to publicly proclaim they are giving up and are out of ammo and ideas. That will never happen. The algo-driven HFT machines rule the markets and take out the bear’s stops.

        Austerity will never happen either, congress knows it means total collapse. The ONLY path left is more debt…get used to it. Car loans now at $1 TRILLION, and going to two. Student loans at $1.2 TRILLION and heading there too. Nobody cares; they have NO intention of EVER paying off their loans. Just wait around for forgiveness and then comes new bank bailouts. Rinse-repeat.

        • I think you are right: the hamster wheel has to keep spinning. It can’t stop. As long as they can create credit and buy stuff with it, then they can keep the population fed and watered. If they get obese and diabetes, all the better: more stuff to sell them: drugs, mobile scooters, surgery.

          The system is very creative, it can always come up with new drugs for the population.

      12. Three trillion?
        Thats just chump change to our so called representatives

      13. Mac,
        your site has been very interesting and has been very good for me, i applaud you and hope for this sit to continue as long as it takes!
        Thanks Again!!!Happy Birthday SHTFNPLAN!!

      14. I second Eppe!

      15. Remember who the real enemy is, once the economy collapses.

        The BIS (Bank Of International Settlement)and all Central Banks.

      16. Ditto, good job Mac. Contact Salco for more information and observations about SHTF.

      17. Great site and coments. Visit every day. Appreciate 1 st Ammendment in action. Thanks for the service to America, Mac.

      18. Happy birthday SHTFPlan! Thanks Mac for all of the great articles, and all the great comments. Between your content and the comments content I figure I find out more good info than any other news site. This is my first time commenting since the thumbs vanished. Thanks everybody!

        • Thx For your kind words — we’ll eventually bring those thumbs back in a secure environment ( logins).

      19. Go and dig a hole somewhere deep and don’t take your phone. Don’t mark it on gps and don’t talk about it. Food, water filter, and protection. And ride your bike if you have a fancy rig.
        Freedom is done ringing.

      20. 3 million seconds = 36 days. 3 billion seconds = 96 years 3 trillion seconds = 96 thousand years. 3 trillion dollar bills laid end to end will go around this planet 12 thousand times . There is no quick fix for this . Except ww3 . O yea baby the big one.If every one we owe money to is vaporized were debt free. And a little or a lot of depopulation on the homeland wouldn’t hurt either . Sounds like a solid plan. Win win situation. So what are they waiting for? Get ther gold first so it doesn’t get vaporized .Great idea. So might as well just keep printing money . Can’t get enough of that yellow stuff.

      21. The debt cycle will come to an end soon. Time to pay up.

        • You know though, as far as “buying things on credit” goes, this level of tech was not a bad purchase.

          If we could just figure out maintenance costs for 10 generations and pay it down by not changing anything else (yes yes naïve and impossible)… it woulda been the best buy in the history of man.

      22. Thank you Mac and Tess for all your hard work. I’ve learned tons in the 3 ( has it been that long??) years I’ve been here, and will continue to learn more! Happy Birthday SHTF!

      23. A trillion here and a trillion there; after a while it adds up to serious money.

      24. The game plan is.

        1. Export manufacturing to the third world to take advantage of cheap labor and non existent environmental regulations.

        2. Expand the use of the USD as reserve currency in #1 above.

        3. Create more money as demand increases for it in #1 & 2.

        4. Increase debt levels to facilitate the creation of more money both domestically and internationally.

        5. Manufacture weapons and raise a military to enforce the above.

        6. Create and continuously maintain a plausible enemy to gain public support in the use of the military to facilitate the above.

      25. We must step back and look at the big picture, not just what is happening in America, because all global events are planned and staged. There are NO countries in the world which are the enemies of each other. None. They are all in it together. China, Russia, the US. All of them. The “enemy” story is the veneer we suckers get duped into believing – so we, our friends and relatives, sons and now daughters, will patriotically sign up for the next bullshit war which only serves to feed the voracious military money machine so they can take over countries’ resources, displace millions of people and further the NWO agenda. Seriously folks, even if you’ve had your eyes opened for years about the NWO, THERE IS ONE PODCAST YOU CANNOT MISS. John Corbett shows the PROOF of how “they” (Kissinger, Rockefeller et al) put it together with China starting back in the ’70s, which included hundreds of US corporations. I was rootin’ for Putin to rein in America’s bullying ways, but no longer. He is 100% a part of the globalist club. What I find most interesting and a fact that bolstered my confidence, is that there’s only about 6,000 of “them” and 6 billion of us. Just sayin’

      26. The Chinese are building the biggest loading docks on the planet in Mexico The Mexican truckers will drive it up the trans Texas highway the TPP probably finalized everything .Now they by pas American longshoreman and American truckers which will maximize their profits they owe it to their stockholders to maximize their profits don’t you know what if you were a major stockholder you would want them to maximize you profits wouldn’t you. Would you stab your fellow Americans in the back for alittle more gold .cant get enough of that yellow stuff?

        • Yep and all that transportation through Mehico gives lots of opportunity to load up lots of drugs in those trucks. Just what we need. Another conduit for the drug trade. Lock the Mexican border down. It’s the only way.

      27. Why do so many of you all clamor for a economic/financial and social collapse? I too am a prepper and believe rough times are ahead but yet I don’t want it to happen. I do not want to see wide-spread hunger, sickness, homelessness, violence, and loss of our Rights. Only people whose lives are empty, meaningless, and purposeless want to see a collapse, and there a lot of that type on this site. It’s true most are not preppers; but apparently some preppers actually wish ill fortune and death on people they don’t even know. This only shows how morally vacuous and angry they are. One must conclude many of these people have an overwhelming sense of failure that controls their lives. And sadly, not really very intelligent. The smart ones are also prepping to rebuild their community. Then there are the ones who are not as bright as they think they are who want a Mad Max scenario in which case they would die anyway ending their wasted lives. There will not be, I repeat, not be a total collapse of civilization as they crave. The vast majority of humanity always want to rebuild and reform society and will quickly wipe out the scavengers, predators, and fruitcakes (as history always proves). I have spoken to more than a few preppers who know exactly how to deal with these types, and the word is getting around how to effectively get it done.

        • Fred

          There is a saying that goes something like this, “Those that desire shots fired in anger have never been the recipient of shots fired in anger”.

          Personally I hope they so successfully kick the can down the road that they have to extend the highway.

      28. I think some prepares just do the math read about the history of and what all the bigs say about central banks. And just want to get it over with an start building a better tomorrow before their to old to handle it. I think some preparers believe what the bible says about the big disaster before the new beginning .And like the bible say s they will be hoping for the tribulation disaster to get to the new beginning . ( even so come lord ) bring it on the true believers should be ready by now.The ones that don’t care are the tares. To be culled out.Most of us have probably tried to get friend or family members to care . Just remember this is all about getting rid of those kind .Any of those type you save defeats the purpose of all this.Its about separating the wheat from the tarts and getting rid of them .Regardless if your best friend or family member.If you save an evil one .you will ruin everything.

      29. IMF will just issue $6 trillion new to cover the $3 trillion in “Over-Borrowing.” Why you worry

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