I have strongly recommended that individuals pay off debt in order to improve their sleep cycle. Individuals ultimately make up a nation. In the past, different nations were in different stages of development somewhat independent of the rest of the world. This is no longer true. With telecommunications reaching every nook and cranny around the world, all countries are interconnected in some way. Money easily flows around the globe in milliseconds now. American depositors can now have a bank account denominated in other currencies with a click of the computer mouse.
It has been reported that the world GDP (Gross Domestic Product equivalent) is $60 Trillion. See:http://siteresources.worldbank.org/DATASTATISTICS/Resources/GDP.pdf
The following graph indicates that governments around the world will need $5 Trillion in new money to fund their 2009 debt issuance:
This graph indicates that governments around the world need to attract funds equivalent to 9% of the world’s GDP. HOUSTON, WE HAVE A PROBLEM! This year the amount of funding needed is three times the five year average!
With much of the globe fighting off a recession, where will these funds come from? Increasing interest rates to compete with other investments is not plausible. It would appear that the monetary printing presses will heat up to take up the slack. This will be bullish for commodities including oil, gas, gold, and silver. 11+ states in the U.S. are dealing with the potential of bankruptcy with California in the lead. Official Unemployment will probably exceed 11% soon. Tighten your belts, things are getting interesting!