Debt levels have mounted up to amounts that exceed what they were when the financial crash of 2007 took place.
I have warned readers before that governments are binging on debt. And I have posted about how those debt-ratios threaten the stability of the economy just as much as they did in 2007. Now the Financial Times is discussing the issue, reporting that “Debt Mountains Spark Fears of another Crisis.”
The world is awash with more debt than before the global financial crisis erupted in 2007, with China’s debt relative to its economic size now exceeding US levels, according to a report.
Global debt has increased by $57tn since 2007 to almost $200tn — far outpacing economic growth, calculates McKinsey & Co, the consultancy. As a share of gross domestic product, debt has risen from 270 per cent to 286 per cent.
Because we all know that what a drunk really needs to solve his addiction… is another drink! (At least that’s apparently what politicians and Central Bankers believe. Actions speak louder than words!)
“Overall debt relative to gross domestic product is now higher in most nations than it was before the crisis,” McKinsey reports. “Higher levels of debt pose questions about financial stability.”
I’m sure this will end just fine.
In other news, five unicorns were seen playing in Atlantis today with Bigfoot and the Loch Ness Monster, and Jonathan Gruber and Barack Obama held a press conference in which they spoke nothing but the truth.