The $233 Trillion Dark Cloud of Global Debt
The comments above & below is an edited and abridged synopsis of an article by Alex Deluce
Global debt has reached record heights without any signs of relief. While central bankers try to explain away the phenomenon of these out-of-control numbers, it’s not much of a mystery. Immediate consumption with the promise of repayment sometime in the future has consequences. Global debt will likely never be repaid.
The math is simple. The more a country increases its debt to simply stay afloat, the more like the increasing debt will cause a tightening of credit. The next step is a burst bubble and economic crisis. This is what happened in 1929 and in 2007, and it’s happening now.
The global economy is also suffering from limited growth in productivity because of an aging labor force, reduced investments, neglected infrastructures, reduced entrepreneurship and the general uncertainty about how to resolve these problems.
To avert a global crisis, leaders need to act instead of being complacent. Proper skills training and greater emphasis on investments can lead to the productivity growth that can create the global expansion necessary to tame the current debt cycle.
If leaders make the right choices, our grandchildren may not face the economic crisis which currently appears to be the only legacy they will inherit.