This 86 year cycle that Martin talks about is very real and well documented.


The Coming European Revoluition

European Revolutionary Cycle

SovDebtCrisis-Wave-86D

I have warned that 2017 will be the political year from hell. What I am illustrating here is the link between a sovereign debt crisis and the Revolutionary Cycle. In 1933, Roosevelt came to power in the USA and turned the country toward socialism. That same year, 1933, brought Hitler and Mao to power. So 1934 was the revolutionary year. Such revolutions do not always bring blood in the streets. The next one is due in 2020 and we should see the system we currently live under go completely upside-down.

The revolutions of 1848 were essentially a democratic movement and an uprising against the political elite. In 1848, Karl Marx published “The Communist Manifesto” with Friedrich Engels, and was exiled to London as a result. In London, where he lived the remainder of his life, he wrote the first volume of Das Kapital”. This undoubtedly influenced the revolutions that opened the door to communism/socialism. This also inspired the collapse of the old feudal structures and created independent national states. The revolutionary wave began in France in February 1848 when the French monarchy was overthrown. Communism actually began in France as a “commune” where people lived in one shared community with no individual property rights. It was the French who convinced Marx that communism would work better than just socialism, which he had advocated initially.

This 1848 revolution spread as a contagion, similar to what the American Revolution had done during the previous century. The contagion of 1848 spread to most of Europe and parts of Latin America. In total, it impacted over 50 countries. This was by no means a coordination or cooperation between various revolutionary trends around Europe.

Generally, a contagion is attributed to six factors: (1) widespread dissatisfaction with political leadership, as we have today; (2) demands for more participation in government and democracy, as republics have once again robbed us of our right to vote; (3) demands for freedom of press, which is manifesting today in the internet; (4) the demands of the working class, whom today have been oppressed by huge tax rates combined with income taxes and VAT at 20%+; (5) the upsurge of nationalism, which we are again watching unfold thanks to terrorism; and finally, (6) the regrouping of the reactionary forces based on the royalty, aristocracy, army, church and peasants, which is again unfolding as class warfare.

The American Revolution really began in 1762 or 86 years before 1848. Indeed, the very same issue that sparked the American Revolution was the government’s practice of arbitrarily seizing assets and searching letters to see if anyone spoke anything derogatory against the government. The NSA today does exactly what the king’s men had done. In 2014 and 2015, the assets confiscated by police exceeded all the property stolen by criminals. The police have replaced the criminals in so many ways. They get to seize property and are rarely ever held accountable for killing citizens rashly. They always use deadly force rather than resolving issues without killing someone in the process.

These very same practices came to a head in the famous trial involving writs of assistance to the revenue officers, empowering them, at their SOLE discretion, to search suspected places at will. This eventually became the reason for the American Revolution and is what became known as the Fourth Amendment in the USA, which judges have swept away under the rug and no longer exists.

The legal case which became the seminal beginning was Entick v. Carrington and Three Other King’s Messengers, reported at length in 19 Howell’s State Trials 1029. The action, dated November 1762, was for trespassing and interfering with the plaintiff’s dwelling by breaking open his desks and boxes and searching and examining his papers.

The defense lawyer, James Otis, in Boston pronounced that the writs of assistance of the king were “the worst instrument of arbitrary power, the most destructive of English liberty, and the fundamental principles of law that ever was found in an English law book.” These writs of assistance allowed government employees to do whatever they wanted, as they continue to do today. It is our burden to prove we have rights – not theirs to restrain themselves. This has placed “the liberty of every man in the hands of every petty officer.”

Future president, John Adams, was there listening to Otis arguing in court. Otis, of course, lost with the judge only ruling for the king. “Then and there,” said John Adams, “then and there was the first scene of the first act of opposition to the arbitrary claims of Great Britain. Then and there, the child Independence was born.”

This is what cycles are about. Fourteen years after 1762 marked the American Revolution in 1776 with the Declaration of Independence. After nearly one Pi Cycle (31.4 years from Otis’ speech) George Washington was sworn into presidency and the United States was born. It is always just a question of time.

The mere fact that we can observe regular cycles over long periods of time demonstrates one thing: we should never confuse the idea of FREE WILL of the individual with the collective action of society. You will never find 100% of the people in agreement. Thus, you are NOT compelled like a robot to agree with the majority. That is your individual FREE WILL. You would not be reading this if you were among the mindless majority. Society, however, moves within a continuum with a sense of perpetual continuous motion. I have stated this before, but it needs to be repeated. Focusing upon the personality of Hitler or Napoleon misses the entire point. It is

Society moves within a continuum with a sense of perpetual continuous motion. I have stated this before, but it needs to be repeated. Focusing upon the personality of Hitler or Napoleon misses the entire point. It is NEVER the individual who moves the majority; it is the majority that produces the individual. Hitler was imprisoned for what he considered to be “political crimes” following his failed Putsch in Munich in November 1923. While imprisoned, Hitler wrote Mein Kampf” (“My Struggle”). Dictating the book to Rudolf Hess, Hitler outlined his political ideology and future plans for Germany. Volume 1 was published in 1925 and Volume 2 in 1926. However, he came to power in 1933 or about 8.6 years after publication.

Society creates the leader, not the other way around. If we focus upon the economy, this turns the heat up for political change. Which individual takes the lead is not the important issue. Society will ALWAYS select someone. An individual cannot force their ideas upon society no matter how loud they scream. Therefore, societal history is indeed following physics like everything else. A body in motion will stay in motion until there is some resistance to slow it down. Government’s mismanagement grows larger and reduces economic growth to the point where we have tax rebellions that often result in revolution.

USA Net Cap 1960-1990 Annotated

History is, in fact, modeled by a deterministic, non-linear, dynamic system that displays chaotic behavior (Panic Cycles). Mapping the small changes within such a system that ripple through the entire mass is fascinating, for such changes are never seen by the actor as impacting a far more dynamic system. FATCA, for example, is directly reversing the global economic expansion by forcing Americans back into a domestic economic environment that is worsening the deflation external to the USA as the dollar is forced higher. The outflow of capital from the USA reconstructed the world economy, whereas now that single tax-hungry law set in motion the reverse consequence of destroying the world economy. Therefore, in a mathematical sense, the slightest deviation to the global economic system will eventually create a wildly divergent outcome. This act is inspired by the fact that government is incapable of managing itself, no less the economy that they do not even comprehend.

Roman-Christian-Persecution

Therefore, it is not that one man can make a difference. I tried that route and quickly saw that the best ideas were still ignored due to the self-interest of those in charge. Consequently, it is NEVER the individual, but society, that must reach the point where it seeks an answer and embraces a new idea. Rome collapsed during the 3rd century; this is when the Christian Persecution really surged. Some argued the gods were angry because there were too many Christians and this is why they did not respond to the prayers of the Romans. Eventually, more and more people took the opposite view that their prayers were not answered because they were false gods. Christianity took off and Constantine plundered the pagan temples, pronouncing Christianity as the new religion so he could confiscate that wealth and restart the empire by moving the capital to a brand new city — Constantinople (Istanbul today).

Rome collapsed during the 3rd century; this is when the Christian persecution really surged. Some argued the gods were angry because there were too many Christians and this is why they did not respond to the prayers of the Romans. Eventually, more and more people took the opposite view that their prayers were not answered because they were praying to false gods. Christianity took off and Constantine plundered the pagan temples, pronouncing Christianity as the new religion so he could confiscate that wealth and restart the empire by moving the capital to a brand new city — Constantinople (Istanbul today).

Therefore, history repeats because humanity never changes. What drives it is the majority swinging back and forth much like Republican vs. Democrat political victories. History is not made by the ideas of individuals; the individuals are produced as a response to the shift in the flow of history that behaves in a continuous manner by responding in the same manner to forces no matter what century we look at. Once we abandon the deep analysis of people like Hitler and step back from the individual to observe the collective community, suddenly history takes shape, which conforms, like everything else, to the laws of physics. So yes, we will see a European revolution. It is inevitable.

If Asia and the EU go down again Monday ?????


Shanghai Today – January 11th, 2016 Open

SHANGHAI-D 1-10-2016 SHANGHAI-D FOR 1-10-2016

 

Japan is closed today but the selling has begun in New Zealand and Australia. We have an opportunity for today to form the initial low for right now. We have a Weekly Bearish in Shanghai at 3060850 which will be critical support for the close of this week. We have penetrated that level falling to 3056878 last week. The key support lies down at the 2437400 area. We also have a Monthly Bearish at the 3049100 level with a gap thereafter down to 2210000. A monthly closing BELOW 3049100 will warn that indeed there is a risk of a reversal of fortune and a retest of the 2008 low becomes possible.

The currency has resistance for the dollar standing at 68350 level. We have elected the FOUR Monthly Bullish Reversals from the low in January 2014. This is warning that exceeding the 68350 level will warn of a major dollar rally and global meltdown is unfolding.

The timing is not certain but the ride will be very bumpy!


The Sling Shot Move – How Long Would it Last?

ECM-2015-20

QUESTION: 

Hi Martin…can you explain more what you meant but what you said below?
Does this mean a long correction that will last thru out this year or longer? or will it just be thru march ..then bottom and head back up thru 2017..? Confused here…what is the …extension mean exactly? Is that an uptrend in the market until and beyond 2017?

If it cracks…how long will it crack downwards?
Thank you

Our Panic Cycles began to turn up this week moving into next week. If we penetrate last year’s low of 15370, then we may see a drop to retest the major support area in the 12875-13100 area. We should break the market FIRST and this appears to be setting up for the extension beyond 2017. A monthly closing below 16013 will signal that the market should crack and then we will be set up for a really wild rise.

1987 Sling Shot

2007 Sling Shot

ANSWER: No, this is a Sling Shot move more akin to 1987 if we achieve it. A crash would be rather quick in the form of a Waterfall Move. Therefore, we are unlikely to see a prolonged decline. It would tend to be short, sweet, and to the point. Everyone would tend to bailout and then that would be the fuel to send it back up for they would not believe the result. Keep in mind this is NOT YET CONFIRMED. We need to elect a Monthly Bearish Reversal at the 16000 area to signal a move to the next zone in the 12900-13100 area on the extreme.

The movement in the DOW and the rest is as predicted and the year is still not looking good.


Dow Array Still on Track

DJFOR-M 7-6-2015

QUESTION: Marty; At the conference you stated that 2016 should be the major turning point in deflation. Do you still see this concluding for the first quarter?

Thanks

HG

ANSWER: The monthly array in the Dow published here back in July appears to be working on target. November was the reaction high where the Dow reached 1721043 intraday. It picked the May high for 2015 correctly and we still have the first quarter as the main target to pay attention. Not much has changed. Socrates warned that is we closed lower at year-end 2015 then we would see a correction.

We may yet get that Sling-Shot Move where you take out last year’s low and then swing to new highs. The only difference that seems to be shaping up is that instead of a conclusion for 2017, we may be looking at an extension into 2020 and the general public becomes aware of the crisis in government.

We have to pay close attention now to the Weekly and Monthly Bearish Reversals. It is the monthly which will signal if we are going to get a Sling-Shot and extend this entire mess beyond 2017.

The numbers are the numbers and the arrays are the arrays. My personal opinion does not really matter for it is always the computer which does a far better job than I could do on a personal level.

So it begins …


Contribution from Norway — War & Money

War-Money

COMMENT: 

Good morning, Martin.

Yesterday I bought an old booklet printed for 10 NoK at the Armed Forces Museum: “Laws, resolutions and prescripts due to circumstances of war”, by the Justice Department, printed in Kristiania (now Oslo) in 1917. I thought I there would find the outline of a recipe for what may come here this time around. Here are the highlights (in addition to an ever growing list of goods that are temporarily forbidden to export):

3. August 1914: Telegram from the Finance dept, ordering all major banks to execute the bank-plan restricting withdrawals from accounts, and immediately order all banks to stop any withdrawal not in accordance with the plan.

4. August 1914: Maximum prices to be imposed on certain goods

4. August 1914: Payment of expireing government paper will be postponed one month, ordinary interest rate applies. For paper without interest rates, 5% p.a. will be paid during the posponment period.

5. August 1914: Bank of Norway is temporarily not obliged to exchange its notes with gold.

15. August 1914: Since there was no bank run, the bank-plan is relaxed, but banks shall only allow withdrawals to companies to pay salaries etc. Private persons are allowed to withdraw what the bank think they will need for one week at the time. Under no circumstances must the banking restrictions come in the way of companies/private persons paying taxes to state/munis.

18. August 1914: Gold and silver in any form is for the time being prohibited to export from Norway.

18. September 1914: International private telegrams are to be in Norwegian, Swedish, Danish, German, English, French or Russian, and be written in a clear way that gives meaning to the operators. If not, the telegrams will not be forwarded and no notification given. International phonecalls are to be in Norwegian, Swedish or Danish. Non- compliance leads to termination of the conversation.

20. August 2015: Increased taxes on income generated due to the war business cycle: 5% on first 5000 NoK increased income (based on tax declaration 1914) assumed to be due to the war. 15% on 20 000 NoK and above.

15. April 1916: Bank of Norway is temporarily no longer obliged to exchange into notes gold handed in, nor is the State Mint obliged to mint coins from gold handed in.

Happy New Year Martin, and all fellow readers of this blog.

00:00
01:37

 

REPLY: War and money has always been a politically sanctioned marriage. Trying to force the federalization of Europe to end war is like advocating that had Hitler or Napoleon conquered all of Europe, then they would have ended European wars. The EU in Brussels is trying to conquer Europe and they are using politicians to betray their own people. This has always been the goal. The euro was indeed the federalization of Europe through the back door, as Margaret Thatcher said.

2015.75: The Start of Sovereign Debt Crisis

ECM2015-2020

We warned that 2015.75 was the turning point to the start of BIG BANG. As we now have entered the down wave on the Economic Confidence Model, things will begin to heat up. Here in 2016, I have warned that our crisis has been created by the total mismanagement of government by politicians. This year will mark the beginning of the problem where governments

I have warned that our current crisis in 2016 has been created by the total mismanagement of government by politicians. This year will mark the beginning of the problem of governments NEVER paying off debt. Instead, they roll it and add to it year after year. Well, 2016 will mark an outrageous roll as the equivalent of nearly half of the USA’s national debt has to be refunded. Major economies need to raise about $7.1 trillion U.S. dollars to refinance debt. Germany alone has around €203 billion euros of new debt that it has to sell, which is a considerable challenge in view of the fragile global economy. Welcome to BIG BANG.

A recovery from the open but still down!


Market Talk — January 4, 2016

Market-Talk

What a start to the New Year! Talk around the street voiced a few reasons for today’s stock market declines from geopolitical tensions between Saudi Arabia and Iran to additional dealing costs associated to playing the markets. Discussions are apparently underway across the globe to address market orders, the way in which orders are placed, the magnitude of such orders and the frequency. This, of course, will increase the volatility of prices (as market-makers withdraw) whilst at the same time lead exchanges to increasing margin requirement’s.

Chinese equities lost all bids with two exchange forced closes earlier today. The initial 5% forced the first close only to be closed the second time after the Index fell 7% – this time for the remainder of the day. The Nikkei opened the year over 1% lower and continued the selling throughout the rest of the day to close down 3% at 18,450. The futures have continued that decline and are currently trading around 18,150.

Europe opened weakly and remained so for the balance of the day. DAX closed -4.3%, FTSE -2.4%, and CAC -2.5%. In the U.S., we saw initial weakness across the board but all recovered in the final 30 minutes of trading.

The DOW, S&P, and NASDAQ all recovered to close at their days highs. All markets closed lower but a huge improvement in the final twenty minutes from their lows. DOW -2.1%; S&P -1.5%, and NASDAQ -2.1%.

Both gold and the bond markets saw the flight to quality bid with gold jumping $15 while bonds rallied 4BP across the curve. The spread between U.S./Germany closed around 166bp with U.S. 10s yielding 2.235 whilst German 10s closed 0.57%. This year, we should also follow the peripheral European bond market, so for point of fact we shall include 10yr Italy also; so tonight the BTP closed at 1.55%.

The U.S. dollar saw the bulk of the in-flow with the DXY (USD Index) closing up 0.25% at 98.95. The Turkish Lira was one of the EM currencies that suffered (amidst the market turmoil) closing down on the day almost 1.6% against the USD. GBP and Euro also lost ground but only a marginal 0.25%. A couple of other currencies to mention would be the BRL that lost 2% and the Polish Zloty that lost 1.2%.

The Markets will be unstable through first quarter!


Dow & the Immediate Outlook

DJIND-W TECH 1-4-2016

QUESTION: Marty, at the WEC you said the Dow would go down in the first quarter. How far do you see this going this time?

ANSWER: We elected a monthly Bearish Reversal at year end and closed lower than 2014. The main support starts really down at 15850 level followed by 15370. We can see even technically the Stochastics are showing a correction is forming and we lost the upward momentum. A monthly closing beneath that level will confirm a deeper correction. Many people expect the stock market to decline with higher interest rates domestically and others see that an uptick in US rates will be the kiss of death to Emerging Markets which will be bad for the world economy as a whole. Keep in mind that these are likely to put a bullish spin yet of the dollar fueling the deflationary spiral for now. I have stated that this is critical to understand the future.

We have initial support forming at the 16886 level and a weekly closing below that will confirm a continued decline. Our Daily models warn of important support starting at 16930.

DJIND-W FOR 1-4-2016

Volatility should rise doing into next week and we have a slew of Directional Changes in a row on the Weekly level warning of a very choppy market ahead into early February.

The Black hole of Sovereign Debt!


Our Nemesis – Sovereign Debt Crisis

Nemesis-Justice

Nemesis & Justice in Pursuit

QUESTION: Mr. Armstrong, I wanted to thank you for the conference in Berlin. It was my first time attending. I cannot wait for the DVD. You gave so much information, I think I will have to watch the DVD several times. I can see the debt crisis here in Europe and I can see the move to get cash into dollars. Has debt always been the great destroyer of civilization?

ANSWER: The Sovereign Debt Crisis is our Nemesis; the inescapable agent of someone’s or something’s downfall. Before governments borrowed, they debased their currency. This was the same result for the German Hyperinflation that is so seriously misunderstood. Because of the 1918 Communist Revolution in Germany and their default on all outstanding debt of the previous government, the new Revolutionary Government could not borrow. Hence , all they had was the printing press. That is SIGNIFICANTLY different from today. As long as “confidence” prevails and they can sell debt, there can be no hyperinflation for that is not caused by simply printing more money this year than next. That is a simpleton’s view of more complex issue.

Black-HoleWe are not anywhere close to hyperinflation. We are trapped within a Sovereign Debt Crisis where the world governments continue to issue debt which is bought by insane people, and then they try to service that debt by raising taxes. This shrinks the private sector as government acts like a black hole sucking in all the energy and light within the economy destroying civilization and risking a Dark Age.

Claudius AY Pax-Nemesis

This time there will be no peaceful hand-over of power, so I would not count on the Pax-Nemesis prevailing. After the assassination of Caligula on January 24, 41AD, the Praetorian Guards needed an emperor to retain their jobs and took Claudius to the Praetorian camp and put him under their protection. The depiction of the goddess Pax-Nemesis, representing subdued vengeance or the amnesty in prosecuting those who had participated in the assassination of his nephew.The Senate quickly met and began debating a change of government, yet it quickly devolved into an argument over which of them would be the new Princeps. When the Senate heard of the Praetorians’ claim, they demanded that Claudius be delivered to them for approval. Perhaps King Herod of Israel, a boyhood friend may have counseled Claudius, but whatever the source of the counsel be it Herod or the guards, Claudius rightly refused sensing the danger.

Eventually the Senate was forced to give in and accepted Claudius as the new Emperor and in return he pardoned nearly all the assassins. Thus, this coin was issued depicting “Pax” meaning peace and Nemesis; the inescapable agent of someone’s or something’s downfall.

So unfortunately, the only possible way forward to escape our fate of a Dark Age is to employ the SOLUTION we have set forth to deal with the debt. This is our only hope of achieving Pax-Nemesis.

DEFLATION comes as governments try to collect more and more taxes. This shrinks the economy and makes it vulnerable it collapses. INFLATION comes when CONFIDENCE is lost in government. Then money declines in value and assets rise. It is always a confidence game.


The Real Reason Inflation Unfolds

Confidence-wide

QUESTION: Dear Mr Armstrong,

Thank you EVER SO MUCH for everything that you do even for ordinary folks like me who are not traders but just want to have a good grasp of where to put their money. I have already learnt a great deal by merely following your blog throughout the last two years, and I’m eagerly anticipating the investor level of Socrates. Merely from looking at how it’s supposed to work on your website is mind-blowing! Thanks for the incredible work that must go into this amazing project.

Concerning the pressure exerted by banks on Romanian politicians I find it really intriguing that these days banks usually (at least, here in Germany) may put stipulations in their mortgage contracts giving them the right, under certain circumstances, to re-evaluate the value of your property, if this has increased in terms of your currency, and to adjust your mortgage accordingly. Interestingly, they weren’t allowed to put in such stipulations before the Euro was introduced. Clearly, the banks want to have it both ways, so I agree with you when you say: “The bankers want no risk and will screw the people every time. This law is fair as the banks sold mortgages without guidance.”

What still confuses me sometimes is that assets may rise even in a deflation, but I suppose that’s due to an asset inflation then which is to do with the political climate calling for a flight to assets, correct?

Yours sincerely,
TN (Germany)

ANSWER: Correct. The banks did not believe in the euro. Even the German Central Bank was against the euro. They could not speak out back then so there were people inside who were feeding us all the inside info to get it out. We published a lot back then and the commission even attended our conference in London in 1997. This was, in part, the primary reason for that hidden clause which never got much press. Trying to cope with pricing cross currency has always been a huge problem for corporations as well as banks. Not every mortgage has such a clause. However, if a country were to exit the euro, the mortgages would most likely be revalued by political dictate rather than a free market.

We can still experience “asset inflation” during a deflationary move for one of two reasons. First are commodities that can rise due to a sudden shortage in supply, such as in an agricultural produce when a crop is destroyed for some reason. Second, asset prices can rise during a deflationary wave because taxes are rising and banks become untrustworthy. Then money seeks merely to park. It is not a speculative boom whereby people are expecting to make money on a rise. This is the typical capital flight to quality where assets replace government bonds.

declsilv-ma-waterfall

3-Hoard

The typical assumption is that Rome went through hyperinflation during the 3rd century simply because the coinage was debased. Yet, hoards of the debased coinage are common during this period. We rarely see hoards of the debased mixed with the old silver coinage. The hoard we purchased covered the period of 250 AD up to 285 AD. We bought this hoard for study because it was perhaps the widest span of time of any hoard. Most seem to be 270-285 AD period. This demonstrates that they hoarded even the debased coinage. Therefore, it was beyond merely debasement. This was the massive invasions of barbarians at the gates.

Aurelian-Wall-1R

If you travel to Rome, you will see its walls are largely intact in many areas. They were constructed by the Emperor Aurelian (270-275 AD). Banks could not be trusted and there was a question of whether government could even defend its people. It was not merely the debasement. The debasement became necessary because of massive hoarding which created deflation. The inflationary wave came AFTER the contraction bottomed. This is when we see the wage and price controls of Diocletian (284-305 AD) issued in 301 AD. This curiously was 51.6 years after Trajan Decius (249-251 AD) came to power. Decius was the first Roman Emperor to be killed in battle by the Goths. This was the start of the decline in CONFIDENCE of Roman society when they realized they were vulnerable for the first time.

Confidence-2

The deflation comes as governments try to collect more and more taxes. This shrinks the economy and makes it vulnerable long-term until it collapses. The inflation comes when CONFIDENCE is lost in government. Then money declines in value and assets rise. It is always a confidence game.

The Obama administration has started a death spiral of sucking the life blood out of the economy though more and more taxes which will not stop until they have 100% og everything!


The Solution – Debt & Taxes

US Debt 2015 Int Expenditures

QUESTION: Mr. Armstrong; I was given your Solution DVD for Christmas by my son. I just began reading your blog for days. This has been an eye opening experience and it has even opened a dialog with my son. So you can teach old dogs new tricks. So my conclusion is that we can step ahead and that we may not overcome death, but taxes do seem to lead nowhere but more taxes. Do you think they will adopt your solution?

ANSWER: We have sold many SOLUTION DVDs on Amazon. It seems to be a great gift to get others to pay attention. Glad that worked with you. The more people who  watch this and at least enter the debate, the more likely we can see this solution take hold. But keep in mind, this solution would ONLY emerge after we crash and burn and the current system becomes unsustainable.

We are spending per month, even at these low interest rates, over $20 billion in interest per month on average. What happens when rate rise? The system starts to exponentially collapse. Our problem will be that they are increasing taxes and becoming abusively aggressive in tax enforcement, they they are destroying exactly what made the world economy flourish.   But all they care about is holding on to power so they will continue to screw down on society in their own self-interest.

german-debt-int

USIntAsPTotal

It does not really matter looking at debt as a percent of GDP for the GDP includes government expenditures and fails to realize that it is extracting a portion from society to fund itself which wastes productivity since government does not create anything. Therefore, if government is 100% of GDP as in communism, 33% to 50% in socialism, then the debt to GDP ratio becomes delusional. All countries are in trouble because they are operating on a system that is unsustainable.