We all know that governments around the world have undertaken huge bailout packages to support their economies and financial systems.    To do so, they have all needed to borrow heavily.    Fiscal and monetary packages alike have resulted in a greatly increased need to finance them, leading to an extremely high level of public debt issuance.   In effect, to support the crumbling financial and economic infrastructure, the world has reacted by borrowing more from itself.  

As the 7 most important economies, the heaviest borrowers and the core issuers of the total global foreign exchange reserves, it is mind-boggling that these countries can continue to borrow such enormous amounts with absolutely no indication of where the money to pay for it will come from.   Of course, this is the age-old problem that we habitually and blindly relegate to the future.   The future is now folks.   

The System is not linearly infinite, it has breaking points, and the scale of what we are approaching warrants all attention.   The explosion of debt that has spread to the foundations of the economic and financial system not only thwarts all magnitudes ever before seen, but it is crossing paradigms that had yet to be crossed.    

From 2008-2012, gross government debt as percentage of GDP will grow from 63% to 75% in Canada, 67% to 90% in France and Germany, from 105% to 126% in Italy, from 197% to 237% in Japan, from 52% to 94% in England and from 70% to 101% in the US.     These are astounding numbers; the world, at its largest scale, is saturating with debt.   (continues)