National governments around the world are collectively more than 100 trillion dollars in debt.  The United States accounts for about 35 percent of that total, China accounts for about 16 percent of that total, and Japan accounts for about 10 percent of that total.  For a long time, national governments were able to fund their debt binges very cheaply, but now nervous investors are demanding higher interest rates to hold long-term government debt.  This is driving up borrowing costs, and it has thrown credit markets around the globe into a state of chaos.  If bond yields continue to rise at a very brisk pace, there is a risk that investors could become so nervous that credit markets actually start freezing up.  If that were to happen, the entire global financial system would go completely haywire.

The post We Are Looking Down The Barrel Of A Worldwide Credit Market Crisis That Threatens To Be Absolutely Horrific was first published by Michael Snyder on The Economic Collapse Blog and is republished here with his permission. Please support his efforts.