How Much Debt Do We Owe?

 You may be surprised to find out just how much debt the entire world has, which I feel is setting up the next big financial collapse. A country's national debt is simply how much money they owe -and the Debt to GDP percentage is an imporatant ratio to know. The United States itself now has roughly $15.6 trillion in debt - and that doesn't count unfunded liabilities such as Medicare and Social Security. This is more than our GDP!

Here are some of the most indebted nations, according to You'll see below just how serious of a situation we are in. Every single country is in debt, but some are far worse than others:

Public Debt to GDP Ratio   -    External Debt to GDP Ratio

Australia - 37.3 percent, 105.6 percent.

Canada - 81.84 percent, 87.8 percent.

China - 14.17 percent, 10.45 percent.

England/UK - 85.8 percent, 482 percent.

Greece - 174 percent, 217.68 percent.

Ireland - 151 percent, 1,236 percent.

Italy - 118.66 percent, 1,263 percent.

United States - 70.1 percent, 101.7 percent.

If you don't think the situation is serious, take a look at what had to say about the heavy debt burden of our world in a recent article:

"The clock is ticking. Every second, it seems, someone in the world takes on more debt. The idea of a debt clock for an individual nation is familiar to anyone who has been to Times Square in New York, where the American public shortfall is revealed. Our clock shows the global figure for all (or almost all) government debts in dollar terms."

They continue:

"Does it matter? After all, world governments owe the money to their own citizens, not to the Martians. But the rising total is important for two reasons. First, when debt rises faster than economic output (as it has been doing in recent years), higher government debt implies more state interference in the economy and higher taxes in the future. Second, debt must be rolled over at regular intervals. This creates a recurring popularity test for individual governments, rather as reality TV show contestants face a public phone vote every week. Fail that vote, as the Greek government did in early 2010, and the country can be plunged into imminent crisis. So the higher the global government debt total, the greater the risk of fiscal crisis, and the bigger the economic impact such crises will have."

Quite simply, governments all across the world are taking in less than they are spending. The website "The Prophetic Years ( had this to say:

"There is no easy answer to the problem because many people and nations have been living beyond their means for many decades amassing debt and entitlements that cannot be sustained with aging populations. So now the chickens have come home to roust. The credit line of many nations are maxed out and the young cannot support all the entitlements that the baby boomer generation demands.

In the U.S. we cannot keep living like we have twice the income that we really have. Just trying to throw more money at the problem like our government has been doing will just make matters worse in the long run because this nation cannot afford to take on more debt. Passing the costs of this downturn to some future generation is simply not possible. No future generation can possibly pay this huge rapidly increasing debt and soon nobody will be stupid enough to continue to finance our increasingly risky debt at abnormally low interest rates."

So what is one to do? Gold is the number one choice for safety during inflationary times, which I strongly believe we are heading for. Gold, silver, food, oil, real estate, dividend stocks and commodities should all perform well over the coming years. What are you doing to prepare for the next financial crisis caused by this massive debt?