The New Years’ Bill Comes Due

The WealthCycles Staff

If you have a credit card, you might be aware of what a big bill feels like. After all that holiday shopping, the pain will eventually come through in the form of a big fat bill. This is the nature of borrowing—consume or invest now, but sacrifice some prosperity in the future. For sovereign borrowers, including the G7 and BRIC (Brazil, Russia, India, & China) nations, that big fat bill is coming due.

According to data compiled by Bloomberg, the G7 and BRIC nations have $7.6 trillion in debt maturing, or coming due, in 2012—for many, not a pleasant thought to begin the year on. When you include interest payments, the bill will total over $8 trillion.

Led by Japan’s $3 trillion and the U.S.’s $2.8 trillion, the amount coming due for the Group of Seven nations and Brazil, RussiaIndia and China is up from $7.4 trillion at this time last year, according to data compiled by Bloomberg. Ten-year bond yields will be higher by year-end for at least seven of the countries, forecasts show.
Investors may demand higher compensation to lend to countries that struggle to finance increasing debt burdens as the global economy slows, surveys show. The International Monetary Fund cut its forecast for growth this year to 4 percent from a prior estimate of 4.5 percent as Europe’s debt crisis spreads, the U.S. struggles to reduce a budget deficit exceeding $1 trillion and China’s property market cools.

Of course, central banks are fighting back by trying to restrain interest rates by printing (or its electronic equivalent) more currency. The Federal Reserve has promised to keep interest rates near zero through 2013—practically flooding the financial system with currency and wreaking havoc in the natural order of markets.

Will 2012 be the year that Japan, the U.S., or any of the Eurozone members finally breaks and we have a full blown sovereign debt crisis on our hands? Check out the data below and tell us what you think. 

any company by now would be out of business.

Whatever the outcome of 2012 will be i am sure that UK will be the worst off this year, i can see there will be anger among the unemployed and young therefore leading to that same scenario which occurred in August 2011 when we had the rioting, furthermore the UK economy 75% is based on service industry mainly focused on the financial service industry. The UK is living a GREAT LIE and when that Bubble does a 360 and comes back to the UK's face i believe we will see a revolution among the people even the upper middle class which class themselves to be "safe"

The bible does tells about a one world currency, one world goverment in the future, i wonder if these are the fore runner of these events?

Kim Terry

One world of Love, Forgiveness and equanimity? Things must fall apart to come back together into greater coherence sometimes.

Based on the Bible, I know that to save the world from the next financial crisis can only be the introduction of the Jubilee year - all to forgive each other debts. And start from scratch with a blank page.

Leonid Bogza

This would be so cool......forgive and start over, hopefully asking the questions of What did I learn?

Yes mike maloney!

This will be the year of the total collapse of all paper assets!!!!

And there will be a UFO event in the seconde half of 2012, in order to bring in the NWO

Albert

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