There is no savings glut. At all

World debt at $250 trillion is 3x global GDP – an all-time record. If we included unfunded liabilities and derivatives, total debts and liabilities amount to over 25x global GDP.

There is no “savings glut” or fiscal space in the eurozone:

  • Households Debt 93.5% of gross income vs average of 88.9% 1999- 2017 (56% of GDP).
  • Corporate debt 96% of GDP, a 56% debt/equity ratio and weakening solvency ratios (Moody’s)
  • Government spending 47% of GDP, debt/GDP 86%

There is no savings glut in Germany either, nor fiscal space. Only a “not as bad as other eurozone” countries’ situation.

  • Households Debt 83.73% of gross income.55% of GDP
  • Total private debt 147.60% of GDP
  • Government spend 44.5% GDP, debt/GDP 60.9%

 

About Daniel Lacalle

Daniel Lacalle (Madrid, 1967). PhD Economist and Fund Manager. Author of bestsellers "Life In The Financial Markets" and "The Energy World Is Flat" as well as "Escape From the Central Bank Trap". Daniel Lacalle (Madrid, 1967). PhD Economist and Fund Manager. Frequent collaborator with CNBC, Bloomberg, CNN, Hedgeye, Epoch Times, Mises Institute, BBN Times, Wall Street Journal, El Español, A3 Media and 13TV. Holds the CIIA (Certified International Investment Analyst) and masters in Economic Investigation and IESE.

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