Global debt balloons to all-time high of $164 trillion

https://www.rt.com/business/425590-global-debt-record-high/

The world is now 12 percent of GDP deeper in debt than it was at the peak of the financial crisis in 2009, says the International Monetary Fund (IMF). China was described as a “driving force” behind the new debt levels.

According to its Fiscal Monitor report, global debt is at a historical high, reaching the equivalent of 225 percent of GDP.

“One hundred and sixty-four trillion is a huge number,” said Vitor Gaspar, head of the IMF’s fiscal affairs department. “When we talk about the risks looming on the horizon, one of the risks has to do with the high level of public and private debt.”

The ballooning debt could make it harder for countries to respond to the next recession and pay off debts if financing conditions tighten, according to the fund.

It said that China has accounted for almost three-quarters of the increase in private debt since the global financial crisis. Japan and the US account for more than half of the global debt.

The IMF says the reason for the debt build-up is the economic collapse during the 2008 financial crisis, and the policy response to that crisis. It also blamed the effects of the commodities price crash in 2014, as well as rapid spending growth in emerging markets and low-income developing countries.

Talking about the US, it said that “fiscal stimulus is happening when the economy is close to full employment, keeping overall deficits above $1 trillion (five percent of GDP) over the next three years.”

The report has cited the US as the only advanced economy that is expected to see a further increase in its debt-to-GDP ratio over the next five years. The IMF has attributed that to President Donald Trump’s tax cuts and a simultaneous increase in spending.

According to the IMF, 19 countries have either reached or far surpassed their debt ceilings this year. In 2017, more than a third of advanced economies had debt above 85 percent of GDP. In 2000, the number of advanced economies that had reached this level of debt was three times lower.

The IMF said countries should take decisive action to rebuild their fiscal buffers so they could increase spending during hard times. It has urged the US, whose budget deficit is expected to surpass $1 trillion by 2020, to “recalibrate” its fiscal policy so government debt-to-GDP levels decline over the medium term.

————

thats $164,000,000,000,000..

it will never be repaid..bank on that..

401

~ by seeker401 on May 8, 2018.

7 Responses to “Global debt balloons to all-time high of $164 trillion”

  1. Amazing Japan by itself has such a large chunk or worldwide debt. Given Japan’s demographics and the environmental situation in country, I believe Japan will be the first to default and it will act as the canary in the coal mine.

    Thoughts?

    • japan is interesting because after ww2 it basically became a defacto usa state..allowed to inflate to this proportion..it could be the canary for sure..i still think china gets the blame and japan gets shielded..

  2. http://www.investmentwatchblog.com/us-china-rivalry-is-more-than-a-trade-war/

    • “No man can serve two masters. We either serve God, or we serve money.”

      Makes me feel like the pope is going to decide for everyone.

    • his own movie?? wtf..

      • Iran / Israel war being set up it would seem, just waiting for the false flag event to kick it off. I think ALL of this, including the message of the pope’s movie will be connected…perhaps he will sit in the holy place after all, and declare himself king of the new world order?

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