The debt is truly astronomical.
https://www.visualcapitalist.com/global-debt-hits-a-new-high-of-315-trillion/
Global Debt Hits a New High of $315 Trillion
By
Dorothy Neufeld, Visual Capitalist, August 13, 2024
This deluge in borrowing is a widespread trend across economies. While the U.S. and Japan were the largest contributors across advanced economies, China, India, and Mexico drove the largest share in emerging markets. Overall, the global debt-to-GDP ratio reached 333% as higher debt servicing costs and growing debt burdens continue piling up…
In America, debt servicing costs are now more than defense spending, and the interest bill is set to rise further…
For emerging markets, increasing debt burdens present greater risks. These risks are especially acute if a country experiences sluggish growth during a high rate environment. In this scenario, many emerging markets may need to restructure their debt as borrowing becomes unaffordable… [end quote]
“Restructuring” means defaulting on interest payments. Lenders are stiffed although they might eventually get something.
Borrowing is a way of shifting future income to the present. The massive amount of debt is a burden on productive investment.
Wendy