Sharing.:::.A Breakthrough of the Truth.:::. MELCHIZEDEK – HOW TO ACTIVATE YOUR SUPREME ATOM STEP BY STEP INSTRUCTIONS – The Multidimensional Character of Human History Revisited | samkaska

Sharing.:::.A Breakthrough of the Truth.:::. MELCHIZEDEK – HOW TO ACTIVATE YOUR SUPREME ATOM STEP BY STEP INSTRUCTIONS – The Multidimensional Character of Human History Revisited | samkaska.

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Sharing.:::.A Breakthrough of the Truth.:::. MELCHIZEDEK – HOW TO ACTIVATE YOUR SUPREME ATOM STEP BY STEP INSTRUCTIONS – The Multidimensional Character of Human History Revisited

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The Multidimensional 

Character of Human 

History Revisited


by Georgi Stankov, January 16, 2015

In my comprehensive article “The 
Multidimensional Character of Human History” I am talking, among other things, why I , or better said my soul, chose for me to spent a large portion of my life in Munich and Bavaria. It is undoubtedly the darkest place in Europe, where not only Hitler’s crimes began but also the place which gave birth to the most insidious Orion Reptilian shape-shifter Adam Weisshaupt as I have written in this article:
The other reason to spend much of my life in Bavaria is Adam Weisshaupt, who came from the same region, Holledau (Ingolstadt), where I live now. He was also a reptilian, a shape-shifter, and established the modern society of the Illuminati in Europe, first in Munich, Bavaria and later on in the USA, after he was expelled from Bavaria for this activity.

In the USA, he was the double of George Washington during the last 8 months of his presidency, after he was killed by the US-Illuminati, so that they could run the US government undisturbed. At that time, the Rockefeller faction was established in the USA, and the scam with the Washington D.C., which does not belong to the US-state, but unofficially is still a part of the British crown, was laid down.

In Bavaria, I did the most profound cleansing work from the 90s to 2014 when I entered the last most intensive phase of my LBP and turned my fields into a huge “turnstile mechanism” of global proportions that encompasses all timelines of Gaia, now Gaia 5. as the Elohim explained to us. This fact tells you that many highly evolved souls of the light had to incarnate in this darkest piece of land, called Bavaria, in order to raise the light quotient and enable the final creation of the city of light Raetia, which I founded as early as 2001 and continued doing so with the help of my dual soul Carla in December 2013 when we also created Gaia 5.

This is one of the reasons why I decided to publish this article below which addresses the life and martyr death of a famous critical German journalist in Munich, Fritz Gerlich, who fought against the rise of Hitler by exposing him and showing the truth about him and the Nazi movement to the people. 

Ultimately he failed as most Germans were at that time as dark as Hitler, just as the current US population is as dark as Obama and Orion Co and nothing substantial for the better can happen in this Empire of Evil. History repeats again and again, only the outer conditions and historical sites may change.

But this article gives us also a glimpse into the role and life of a highly revered light gestalt Therese Neumann von Konnersreuth, which was a stigmatist and a seer. This woman inspired the courageous journalist Fritz Gerlich to write against Hitler and to reveal indomitably the truth about this human monster in order to save Germany from the impending national and world catastrophe. In vain! He was killed by Hitler’s thugs in the concentration camp in Dachau, not far away from where I last lived in Bavaria.
There are few Germans that know about this dissident (Widerstandskaempfer) as most Germans do not care at all about civil courage and truthfulness, even after they have experienced two national catastrophes. They are for the most part incurable, filthy “Spiessbuerger” (philistines)  This explains also the Tantalus act I had to accomplish in this darkest country in Europe, but at the end I could no longer bear the negativity and had to leave it, otherwise I would have died as the Elohim later confirmed. The same holds true for Carla. We had to join our forces against the daily dark grind as a recent very good message  “Transcending the Daily Grind”  elaborates.
I have decided to publish this article as it highlights the perpetuation of human filth in the current 3D Orion cesspool, which we are now in the final throes of ascending, while destroying this matrix.
The Mystic vs. Hitler, or Fritz Gerlich’s Spectacles

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By annamerkaba on January 16, 2015

Greetings everyone, what I wish to share with all of you today is of great importance and tremendous benefit for ALL of you who are ready to activate the SUPREME ATOM of your being and your 8th and 9th chakras.

A few days ago, as I was about to retire for the night, I saw a beautiful figure appear before me that of an old wise man with a long white beard. The energy surrounding him was spectacular, very calming, peaceful and yet incredibly inspiring. He swirled around me and disappeared from view. Then the next day I was sitting at my computer when all of a sudden I heard a “knock” of sorts and a message that you will see below started to flow through me. I was later shown a vision and given directions on the dimensions of the image that you now see here before you. I had this image commissioned for me by a very talented graphic artist named Kashif.

The being who has given this information to me, later introduced himself as Ascended Master Melchizedek!

And so, here is the channeling, the image and instructions on HOW to activate your SUPREME ATOM, what will happen when you do so, what to expect and how to handle this experience.

“The ascended masters of your concurrent reality desire to speak to humanity through your channel, and we ask for permission to be granted to proceed” After I gave my go ahead here is what followed…

Dearly beloved children of light, the time has come for us to disclose the informational decree set upon you through ethers of the past into the ethers of the NOW moment in time.

The informational decree regarding the atomic structure of your DNA and specifically the atom which resides in the solar plexus of your being. The atom of which we have spoken is indeed the atom that resides in the solar plexus of your being, accessible to you via the satellite of your heart’s codices, through the visual cortex of your brain structure.

For through the visual cortex you shall be able to activate the atom of which we speak which resides in the solar plexus of your being. Through the visual cortex of your vehicles a link shall be made to your heart and through said link the informational decree shall be delivered into your solar plexus.

Be mindful that upon the activation of said atom your solar plexus shall become quite sensitive indeed, be mindful for the solar plexus shall activate and send a signal to your heart and pineal gland for processing.

Following the processing of said unique energies you shall be able to connect to the divinity within yourself, through the activation of your solar plexus and the Supreme Atom that rests within you vehicle energy field.

Through your womb, your naval, your umbilicus, through the womb of your mother, through the connectedness to your mother, you have been connected to the universal womb of which you have come. The universal womb of cosmic proportions. Through your connectedness to your mother’s womb and the mother before her, all the way to the first mother to have walked the earthly planes of existence, the memories of eons past shall indeed be activated within your vehicle, said memories shall indeed be rebalanced, reconstructed and cleansed, allowing you to fully shed that which you are not, and align with that which indeed you are! For the vehicle in which you dwell carries the memories of eons past, memories which hinder the progress of your souls passage into the ethers of your chosen momentum. And hence, upon the cleansing of said atomic chain, upon the activation of your Supreme Atom, you shall then be able to fully align yourself with the divinity of that which indeed you are!

Be mindful that only those who have passed the ring past not, only those who have indeed cleansed their palate and have aligned all chakras of their being to ONESS, UNITY and COSMIC consciousness shall be able to utlize the following decree, and bring forth the hidden knowledge, understanding and pureness of Being onto the earthly planes of existence. Be mindful that upon such activation much shall become rapidly known to you. Understand that your consciousness shall expand to allow you to comprehend that which you shall be able to freely tune into. Know that the informational decree that you shall begin to receive may send you into an emotional turmoil for that which has been hidden shall become crystal clear to you now. Understand that you are to take precautions, know that your lives shall change. Proceed thus only if you are truly ready for transition to HIGHER OCTAVES OF BEING.

That is all that we have for you now. We love you. We are with you. Goodbye for now.

The HOW – Meditate upon the picture provided trice daily, upon awakening, mid day and prior to sleep. Hold the etheric quartz upon your vehicle of choice. Etheric quartz which shall be cleansed by you daily as you retire for the night. Continue said activations for the duration of 8 days and 8 nights. Take rest on day 9 and repeat said mediation for the duration of 24 days. Upon completion of said cycle, you are to inquire with the ascended masters of your chosen decree, the steps that you are to take to further accelerate your rise in the octave harmonics. Know that the crystalline structure of your vehicle shall come to the forefront of your being. Understand that ye to take frequent rests throughout the day as you proceed with the activation of your Supreme Atom. Liquefy your vehicle for the water which you shall drink, shall bind the debris which shall need to be washed out of your vehicles.

Update: It is highly important to meditate on this particular pictures as It has been created under the specifications from Melchizedek. Each color that you see on this picture, each shape, carries specific vibrations which attune you to your higher self, activating your solar plexus, heart, you DNA and pineal gland, allowing you to shed everything from the past. You can either print this picture out and hang it on your wall, and sit down into a mediation looking directly at this picture, or you can sit by your computer and look at the picture close your eyes for a few moments and allow yourself to go deep within and truly get in touch with yourself.

I had no idea what Etheric Quartz is, at first when I heard this channeled information I thought it was an actual quartz that had that name, but then when I googled it, it turns out that there is actually a company out there who make Etheric Quartz Crystals! I was in awe of the clarity of the information that I have received! So I was led to this site here:

When asked to confirm I was told that this is it.

However, I also asked if any other tools that I presently have will work, and turns out that Natalya’s recent creation which is called the “Sephirot (SERAPHIM) Disc”, that she sent to me roughly 3 weeks ago will work just as well. Her tool is infused with Seraph’s energies, as she was visited by a Seraph to create this disc. When I tuned into this disc for the first time I held it in my hand I cried and cried with immense relief, I then felt as if I was taken to see my home yet again. It was such an amazing experience, where everything just fell away for a moment and I was able to experience being myself again, the real true me with all of my benevolent healing powers and light emanating every which way. It only lasted for a few minutes as I had to get back to earth 🙂 But whenever I would use this tool in my healing and mediations I felt all of my chakras activate.

So, when I asked I was told that this tool is made out of quartz, copper and the image of a Seraph and Sephirot. The image that you see on this tool as you can see here is of a Seraph. The gemstones that are placed on the tool are the ones that balance all 7 of your chakras, combining to create a kaleidoscope of lights, activating a rainbow frequency within your being allowing you to connect to activate the 10 emanations of the Three of Life. Sephirot meaning emanations, are the 10 attributes/emanations in Kabbalah, through which Ein Sof(The Infinite) reveals himself and continuously creates both the physical realm and the chain of higher metaphysical realms (Seder hishtalshelus). The term is alternatively transliterated into English as Sefirot/Sefiroth, singular Sephirah/Sefirah etc. These attributes are

Chokhmah- “Wisdom”

2 Binah- “Understanding”
3 Daat- “Knowledge”

Conscious emotions(Primary emotions:)

4 Chesed- “Kindness”
5 Gevurah- “Severity”
6 Tiferet- “Beauty”
(Secondary emotions:)
7 Netzach – “Eternity”
8 Hod- “Glory”
9 Yesod- “Foundation”
(Vessel to bring action:)
10 Malkuth – “Kingship”

To learn more about this tool please see Natalya’s site here:

So as you can see you have choices, of course you should look deep within and see what resonates with you, perhaps you will discover that you can use yet another tool to fasciliate this activation technique.

I hope that this will be useful for you and hope to see all of your abilities activated within you in divine right timing. . I love you all very much! As always Thank you for being here on earth, and being a part of this divine unfolding we call “mission to earth”.

P.S. To help you on your journey I have written and published a book. It is now available for all of you in both hard copy and digital form. It is called “Mission To Earth – A Light workers guide to self mastery”. In it I explore topics such as: Why you are here and what you are doing on earth. How Starseeds get to earth to begin with. Why you feel the way you do. How to communicate with your guides. How to discover your life purpose. How to release everything and let it go. How to reprogram yourself in order to fully connect with your true essence. How to release old thinking patterns and institute a new reality into your life. How to change your life and make it what you want it to be, and most importantly how to find a link back HOME! There’s a lot more that I discuss in this book. I invite you to join me on this journey of self discovery as we explore together the “HOW”, the “WHY” and the “WHEN”. For more information please visit :

~Anna Merkaba – Distant Energy Healer- Channeler – Lightworker. To book a Healing or Pychic Session with Anna and for more channeled messages to help you on your journey to self discovery visit : Sacred Ascension – Key of Life – DISCOVER YOUR TRUE SELF THROUGH THE VIBRATIONAL MESSAGES FROM BEHIND THE VEIL

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Tips to Thrive in 2015

by Selacia

Regardless of how uncertain our world has become, you can take key steps now to thrive in 2015. And with our first new moon of the year just around the corner on the 20th, this is a perfect time to focus on your intentions and plans for constructive actions.

Our new moon falls on a high-energy day – with a rare planetary alignment combined with the sun moving into humanitarian and world-changing Aquarius. All new moons are powerful opportunities for shifting energy and intention setting, but this upcoming one carries amplified potentials.

The key to preparing for this energy is inseparable from what is required to thrive in 2015: set in motion now what you want to see unfold over the long term. In other words, have a big-picture view and regularly take conscious heart-centered actions matching that view.

While it may seem obvious and easy to operate from this higher-consciousness perspective, it’s not so simple when you are steeped in conventional world conditioning. Everyone has this linear background, of course, so don’t be hard on yourself if you slip into black-and-white thinking from time to time. The important thing now is to become more skilled and practiced in applying the quantum, big-picture perspective of your higher wisdom. In this article I’ll provide some tips of how to do this – so you can shift out of lack and into your naturally abundant expression.

Where You Were – Where You Are Headed

Most likely, last year you did regular contemplating and intention-setting regarding life goals and things you wanted to shift. For most on the path of awakening, this is simply a standard ongoing practice that helps with clarity and keeps things moving. If you discovered past patterns in your DNA blocking your progress, you may have done healing of those, too – again, very helpful for moving forward.

Last year’s progress and spiritual growth helped you set a foundation for what is to come in 2015. Keep in mind, though, that even big-picture, quantum intentions and plans you made last year must be fluid now. In order to thrive, you must be open to changing your mind about things and open to brand-new options not even on the drawing board in 2014.

You are constantly changing and so is the world around you. Factor in this perpetual motion as you focus and act on goals you set last year. Being up-to-date energetically needs to become part of your ongoing spiritual practice.

Tips to Thrive in 2015

Here are some tips to help you thrive and be all you can be in 2015. Invite your Higher Self to participate with you as you consider these ideas. Allow these tips to stir your own list and to catalyze dreams helping you to clarify your life vision.

FIRST, challenge the status quo of how you think about and deal with money and being valued. Meditate on the idea of your value, not so much in terms of your net worth but in terms of the big-picture benefits of your being in the world. Others benefit from your being here, and of course, you benefit in countless ways you cannot even begin to grasp on this side of the veil! Dare to question your deepest-held beliefs about money, receiving, giving, and living an abundant life on all levels. Ask within to help determine which beliefs you took on from your lineage, from society, and from internalizing what people told you. Be bold – be willing to be conscious about your money and treat it as something of value to manage. You may have learned that it’s best to avoid focusing on money. Question all of these things. Ask for dreams and input from the world to help you clarify false notions, superstitions, and fear-based ideas based on the truths of others.

SECOND, take a thorough look at how you interact with others – on a personal level, on a group level, and through networks or communities. Thriving in 2015 will depend on your being actively and consciously engaged with the world – connecting on a heart level with a diverse set of people. No one creates abundance on their own. It is a co-creation. You must have input from the world, and you must give your own input to receive back. That may sound obvious, but it’s important to mention here. Don’t forget that spirit speaks through everyone and everything, too. Therefore, self-isolation prevents you from receiving input and other help that spirit orchestrates through other people. Example: sometimes even a sentence you hear standing in line at the market can catalyze ideas within you for an invention, best-selling book, or more profitable way to do something.

THIRD, become more familiar with how energy flows and learn about natural energetic cycles impacting you and everyone on Earth. Get to know your own rhythms and pacing. Question these things from time to time, just in case your natural rhythms and pacing are being compromised by lifestyle or other factors. Do what you can regularly to find and maintain balance of your own energies. You will experience more flow of abundance when you are in tune with yourself and hold a balanced, high-frequency energy. Discover the things that lower your frequency, then find remedies and put those into action. A higher frequency equals more vitality and more abundance. Learn the basics of natural energetic cycles like those involving the moon, seasons, and planetary alignments. You don’t need to become an astrologer to do this, but do pay attention to these cycles that can greatly influence the emotions, thinking, and actions of humanity. After all, your abundance depends on divine timing, the receptivity of others, and being aware of subtle energies that can support or undermine collaborations and projects. The most innovative story pitch or business venture proposal – presented at the wrong time to people who are in chaos or otherwise cannot receive it fully – is wasted effort. Honor yourself by using your energy and time wisely – trust that the universe will naturally respond.

When making your new moon intentions list, consider adding these affirmations: (1) I am a divine changemaker, awakening to my larger purpose and attracting just what I need to fulfill it. (2) I indeed have what it takes, not only to sustain my previous progress, but to move forward and thrive in love and joy. (3) I am a naturally abundant being, my light radiating out into the world to create change.

Copyright 2015 by Selacia – author of Earth’s Pivotal Years, healer, and teacher * All Rights Reserved * * Feel free to share these articles with your friends and post to your blog or website as long as you include this copyright line and the full article text.

Posted 10 minutes ago by LUZ ZOHAR

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A Breakthrough of the Truth


by Georgi Stankov, January 20, 2015

I am exalted. The mouthpiece of the Western Orion-Reptilian propaganda, BBC has just admitted that:

1) Western democracy is suffering from profound deficits “Europe’s “crisis of democracy” is a gap between elites and voters, There is “a gaping hole at the heart of European politics where big ideas should be.” and that “political earthquakes could be in store for Europe in 2015, according to research by the Economist Intelligence Unit for the BBC’s Democracy Day.

2) All the announcements of the Western governments with regard to the alleged recovery of the economy since the 2008 crisis are blatant lies and that the crisis is still ongoing and deepening: “Will we ever really get over the financial crisis? Six years or more on from the start of it, the world economy is still struggling to generate a convincing recovery. Among the headwinds is debt, the factor that took us into the crisis in the first place.” Then BBC goes on to confirm what I have been writing for the last four years: “In the meantime, since the crisis began, global debt has actually risen… The most recent figures come from the Institute of International Finance (IIF), a group that represents the financial services industry. As of June this year it estimated that global debt, excluding the financial sector, was equivalent to 245% of total global economic activity or GDP. That’s up from 214% in September 2008 when the financial crisis was going into its most intense phase.
Then BBC pulls the rabbit out of the hat: The total debt of the USA and the UK, without their financial debt and the amount of risky derivative speculations (20-50 times bigger than the world GDP) exceeds 500% of their GDP (For example Russia has 13% debt to GDP). Eurika! This is a day to celebrate when a miracle happened – the blind presstitutes of the Orion MSM have opened their eyes for the truth to the first time.
My dear friends, this is the most auspicious day, when we witness a veritable breakthrough of the truth amidst the ranks of the ruling cabal in the darkest citadel of the Orion empire – in the UK and its central bullhorn of propaganda – the BBC.
These two confessions of the BBC with regard to the two key factors / trends, which I am stressing in all my articles since I opened this website, will very soon lead to the collapse and “sudden death” of the Orion matrix.
The democratic deficits in the West have created an abyss between the people and the ruling criminal cabal that can no longer be hidden and will very soon destroy the civil society in Europe as well as in the USA, which is already much more advanced in this respect.
The gargantuan debt of the USA and the UK, and to a lesser extent of continental EU, has already destroyed the national economies of the AAA (Anglo-American-Assholes) and have made them unable to lead a new world war. They know that they have already lost. The recent escalation of the US proxi war in Ukraine against Russia with the full support of the US army command, will not help the Kiev Nazis not to lose their fratricide war, just as they have already lost the Donetzk international airport. 
While the approval rates of Putin are at an all-time-high and the solidarity of the Russian people with his policy grows, the Western ruling cabal are like paralyzed hamsters in front of a cobra, while their approval rates are nose-diving. Long gone the wet dreams of the Ape Cameron and Bombama to oust Putin from power with “colour revolutions”.
We, the PAT, are now the true champions of the End Time by employing our Sacred Flames to create the most favourable scenario for our ascension.
Be aware (and proud) of what we have achieved. Or do you think that the latest revelations of the BBC are random events? NO, they are the result of my and your ongoing transmutation of the human minds at the soul level and at the physical level with an unmatched perseverance and journalistic dexterity that now drives amok the dark ones and also their minions, the idiotic Internet trolls, who are overwhelmed by their utter hopelessness to grasp this rapidly changing world.
This is our glorious victory and a Waterloo for the dark cabal – make no mistake about the significant turning point, we reached yesterday. This is a sweeping victory over the dark ones and the ramifications of it will be felt in the coming days when Syriza wins the elections in Greece and leaves the Eurozone, and the ECB will have committed its harakiri with the new 550 billion QE, aping the Fed that has already destroyed the economy of the Empire of Evil with three or four consequent QEs.
Below I am publishing the two BBC articles as of yesterday together, so that you can perceive better the close relationship between the two basic factors for the collapse of the Orion matrix – the widening democracy crisis and the rising debt of the Western world.

BBC Democracy Day: Europe ‘faces political earthquakes’

Political earthquakes could be in store for Europe in 2015, according to research by the Economist Intelligence Unit for the BBC’s Democracy Day.

It says the rising appeal of populist parties could see some winning elections and mainstream parties forced into previously unthinkable alliances.
Europe’s “crisis of democracy” is a gap between elites and voters, EIU says. There is “a gaping hole at the heart of European politics where big ideas should be”, it adds.
Low turnouts at the polls and sharp falls in the membership of traditional parties are key factors in the phenomenon.
‘Highly destabilising’
The United Kingdom – going to the polls in May – is “on the cusp of a potentially prolonged period of political instability”, according to the Economist researchers.


They say there is a much higher than usual chance that the election will produce an unstable government – predicting that the populist UK Independence Party (UKIP) will take votes from both the Conservatives and Labour.
The fragmentation of voters’ preferences combined with Britain’s first-past-the-post electoral system will, the EIU says, make it increasingly difficult to form the kind of single-party governments with a parliamentary majority that have been the norm.
But the most immediate political challenge – and test of how far the growing populism translates into success at the polls – is in Greece. A snap general election takes place there on 25 January, triggered by parliament’s failure to choose a new president in December.
Opinion polls suggest that the far left, populist Syriza could emerge as the strongest party. If it did and was able to form a government, the EIU says this would send shock waves through the European Union and act as a catalyst for political upheaval elsewhere.
“The election of a Syriza government would be highly destabilising, both domestically and regionally. It would almost certainly trigger a crisis in the relationship between Greece and its international creditors, as debt write-offs form one of the core planks of its policy platform,” the EIU says.
“With similar anti-establishment parties gaining ground rapidly in a number of other countries scheduled to hold elections in 2015, the spill-over effects from a further period of Greek turmoil could be significant.”
‘Immigration and austerity’
Other examples of European elections with potential for unpredictable results cited by EIU include polls in Denmark, Finland, Spain, France, Sweden, Germany and Ireland.
“There is a common denominator in these countries: the rise of populist parties,” the EIU says,

An Egyptian anti-government protester in Tahrir Square in 2011A surge of popular protest has swept many parts of the world in recent years

“Anti-establishment sentiment has surged across the eurozone (and the larger EU) and the risk of political disruption and potential crises is high.”
Its analysis is that populist parties and movements – of the left, the right and the indeterminate – are moving into the space that has opened up between the old political parties and their traditional social base.
Opposition to governance from Brussels, immigration and austerity are key themes and rallying cries for many of these parties.
‘Upsurge of protests’
Meanwhile, alongside the rise to prominence of populist movements, there has been an upsurge of popular protest in many parts of the world in recent years.


The EIU estimates that significant protest movements surfaced in more than 90 countries during the past five years – in the main, it says, led by young, educated, middle class individuals who resent their political leaders and who prefer Twitter and other social networks to the traditional political soap box.
“An upsurge of popular protest has swept through Europe, the Middle East, North Africa and Latin America in recent years. Other regions such as Asia and North America have been less susceptible, although have not escaped entirely,” the EIU says.
“The mainsprings of the protests have been different – some have been responses to economic distress, others are revolts against dictatorship; some are expressions of a popular desire to have their voices heard by political elites, others express the aspirations of new middle classes in fast-growing emerging markets.”

Global debt: How worried should we be? 

Will we ever really get over the financial crisis? Six years or more on from the start of it, the world economy is still struggling to generate a convincing recovery.

Among the headwinds is debt, the factor that took us into the crisis in the first place.
In the meantime, since the crisis began global debt has actually risen. The hoped-for financial healing has happened only in a few scattered parts of the global economy.
The most recent figures come from the Institute of International Finance (IIF), a group that represents the financial services industry. As of June this year it estimated that global debt, excluding the financial sector, was equivalent to 245% of total global economic activity or GDP. That’s up from 214% in September 2008 when the financial crisis was going into its most intense phase (Please observe, that this  crisis was entirely caused by excessive debt, Note, George).

global debt outstanding chart

The IIF describes the continued build-up of debt as “worrisome”.
These figures cover debts owed by governments, households and businesses outside the financial sector. They don’t cover all countries, but the vast bulk of global debt is included.
Financial companies, such as banks, have reduced their debts (This is of course an outrageous lie, the leveraging has skyrocket in the last 6 years, Note George). The IIF says that is desirable, but as they are essentially intermediaries between the ultimate lenders and borrowers, “their debt reduction does not influence the assessment of sustainability of the debt burden to the economy”.
What deleveraging?
The persistence of the debt problem was highlighted by another recent study by the International Center for Monetary and Banking Studies (ICMBS) and it tells a similar story.
Its language is rather technical, referring to leverage, which in this context is a measure of debt burdens.
Its title gives the key conclusion: “Deleveraging? What Deleveraging?”
To quote the report’s assessment slightly more fully: “Contrary to widely held beliefs, the world has not yet begun to de-lever and the global debt-to-GDP [ratio] is still growing, breaking new highs.”
If you do include the financial sector for the rich economies, the total figure in the ICMBS report has at least stabilised at 385% of their collective GDP, a level that is nonetheless very close to its all-time high (If you include the financial sector, the main culprit of all debt, it is well over 3 000% to GDP as I have repeatedly stressed; note, George).
Those countries were the source of the bulk of the build-up in global debt levels before the crisis.
Since then, it is the developing world, especially China that has driven the rise in debt. In the case of China, the report describes the rise in debt as “stellar”. Excluding financial companies it has increased by 72 percentage points to a level far higher than any other emerging economy. The report says there have been marked increases in Turkey, Argentina and Thailand as well.
Emerging economies are particularly worrying for the authors of the report: “They could be at the epicentre of the next crisis. Although the level of leverage is higher in developed markets, the speed of the recent leverage process in emerging economies, and especially in Asia, is indeed an increasing concern.” (The financial crisis will unfold like a global conflagration as all national economies are now in a state of default, probably with the exception of Russia and China, note, George)

emerging markets debt outstanding chart

Although the most recent financial crisis was in the rich countries, we don’t have to go all that far back in history to find debt crises in emerging economies that caused tremors, though not full-scale financial earthquakes, around the world.
There were a succession of crises beginning with Mexico in 1996, continuing in Asia, Russia, Turkey, Brazil and then Argentina early in the following decade.
Signs of improvement
There are also some (?), though not many (!), more positive signs in the global debt situation.
In the rich countries, the financial sector has reduced its debt (Bullshit).

mature markets debt outstanding chart

The UK and the United States account for most of that. In the UK, however, while it has fallen it is still at historically very high levels.
The same two countries have seen significant reductions in household debt, measured as a percentage of GDP (leading to a massive impoverishment of the middle class and the masses as a whole, Note George).
But government debt has risen in both. For the UK, if you add that still high financial sector debt you get a total just shy of 500% of GDP. To spell it out, that is the estimate from the International Center for Monetary and Banking Studies and it covers households, business, including the banks, and the government.
The British figure is a good deal higher than the US or the average for the eurozone but significantly lower than Japan. On government debt alone, the British figure (for 2013) is lower than the US or, by a small margin the eurozone.

UK, US debt breakdown chart

Now there is an argument that debts are less troublesome if they are owed by governments rather than by households. The Nobel Prize-winning economist Paul Krugman wrote: “Families have to pay back their debt. Governments don’t – all they need to do is ensure that debt grows more slowly than their tax base.”
But others, such as American professors Carmen Reinhart and Kenneth Rogoff, argue that beyond a certain point, government debt tends to hold back economic growth. They say the threshold is about 90% of GDP. A significant number of countries, mainly rich ones are close to or above those levels. Their work has been the subject of controversy. While admitting some errors, they have defended it. (This is the usual bullshit of the US economic presstitutes, Note, George)
In any event, the authors of the ICMBS report argue that there are features of the current situation that make the large debt burden, public and private, more of a problem. They refer to the “poisonous combination of rising leverage and slowing growth”.
The point is that debt payments – interest and repayments of the original loan – are easier to keep up-to-date for borrowers with a rising income.
And that brings us to the “poison” that the ICMBS report refers to. Debt is high and economies are growing more slowly than before the crisis, so they are not generating the incomes to service the (growing) debt as rapidly as they were.
There has also been a fall in inflation rates in many countries. Inflation can help limit debt burdens. Household incomes, company revenues and government tax receipts all rise but debt payments are often fixed. Low inflation, especially if it is lower than borrowers expected when they took their loan, weakens that process and leaves debt burdens heavier than they would have been.
But there are some who say the picture painted by the ICMBS report is excessively gloomy. You can find some of them in the report itself, which includes a record of a discussion of its findings.
Mark Carey of the US Federal Reserve said he would have toned down a little the size of the disaster we are facing, and that the situation is not as bad as described. He said there is no obvious downtrend in economic growth and pointed out that a great deal of American debt has a variable interest rate. That would reduce the debt burden as inflation falls.
Angel Ubide of DE Shaw Group and the Peterson Institute of International Economics in Washington described the assessment of China as “a bit apocalyptic” and thought it should have been more balanced. He saw a prospect for credit going increasingly to highly productive private firms – which would presumably be able to meet their debt obligations.
Carlo Monticelli of Italy’s Ministry of Economy and Finance recalled that China has $4 trillion in foreign reserves. He also noted the large numbers of people still in the countryside who could support further economic growth by moving to industry or becoming more productive farmers. That implies more economic growth to meet the debt payments.
The conclusion: there is not really any consensus on just how worried we should be about the global debt situation or China’s in particular. But you can be sure that economic policy officials – in central banks, finance ministries and international agencies such as the IMF – will be watching it warily. You can also be sure that we won’t really be shot of the legacy of the financial crisis for a long time yet.

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