Posted on 11/29/2019 12:29:30 PM PST by SeekAndFind
Global debt hit a record high of over $250 trillion in the first half of this year, led by a surge in borrowings in the U.S. and China, according to a new report.
The report, released by the International Institute of Finance (IIF) on Thursday, showed that global debt surged by $7.5 trillion in the first six months of 2019. The IIF said the overall number hit $250.9 trillion at the end of this period, and will exceed $255 trillion by the end of 2019.
“China and the U.S. accounted for over 60% of the increase. Similarly, EM debt also hit a new record of $71.4 trillion (220% of GDP). With few signs of slowdown in the pace of debt accumulation, we estimate that global debt will surpass $255 trillion this year,” the IIF said in the report.
Rising debt across the world has been a big concern for investors and has also been flagged as the next breaking point by a number of economists. Record-low interest rates make it extremely easy for corporates and sovereigns to borrow more money.
“However, with diminishing scope for further monetary easing in many parts of the world, countries with high levels of government debt (Italy, Lebanon) — as well as those where government debt is growing rapidly (Argentina, Brazil, South Africa, and Greece) — may find it harder to turn to fiscal stimulus,” the IIF report stated.
The International Monetary Fund (IMF) last month escalated its warnings about high levels of risky corporate debt, which have been exacerbated by persistent low interest rates from central banks. The IMF warned that almost 40%, or around $19 trillion, of the corporate debt in major economies such as the U.S., China, Japan, Germany, Britain, France, Italy and Spain was at risk of default
(Excerpt) Read more at cnbc.com ...
A great article for those who prefer the dark cloud above the silver lining.
A quarter of a quadrillion here, a quarter of a quadrillion there, pretty soon you’re talking real money....
The entire world and all major economies are now run by central banks, all printing fiat currency. Even during the era of Soviet Communism, half the world was outside this system. So we are in a completely new global system, never seen before in history.
As such, numbers like $300 Trillion mean nothing. We could have 10X that, $3 Quadrillion, in world debt. Would it matter? where are you and your money going to run to?
... and it’s all on our kids and grandkids credit cards.
Global savers held a record $250 trillion in bond investments in the first half of 2019, led by the US and China.
ROFMLFAO!!!!!!!!!
I didn’t even KNOW what it was a quarter of :)
and the UN only wants $300 Billion a year to give to the Africans and Muslims , I mean fight Global Warming
What is debt to asset ratio?
It’s not like countries have any intention of paying it down.
How about the world cancel the US’s debt with all the aid we’ve given them.
World Debt? To whom do we owe it? Mars?
We only account for about 8 percent and we can manage. It appears that some countries have to be in big trouble.
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