Debt the Bubble that will End all Bubbles !!
It may sound like hyperbole, but the imminent global debt crisis cannot be taken slightly.
After years of incredibly low interest rates around the world, companies and governments issued debt like it was going out of style.
And it just may.
The untold story of the world economy ; this far at the least , is the possibly perilous connection between the scattering trade-war and the protrusion of global debt, valued at a breathtaking $247 trillion. That’s “Trillion” with a “T.”
This is a multi-trillion dollar problem, one hard to just evaluate.
The numbers are so immense as to be almost inexplicable.
Households, businesses and governments borrow on the premise that they will service their debts either by paying the principal and interest or by turning the debts into new loans. But this works only if incomes increase fast enough to make the debts tolerable or to warrant new loans.
When those ingredients go lacking, delinquencies, defaults and worst-case panics follow.
These aren't just mind-boggling numbers .
There are real, wholehearted consequences for average Americans.
High debt drove up interest rates, which translates to higher payments on mortgages, car loans, and credit card debt.
Because debt is growing, somewhat than stable, in 30 years, a family with a $300,000 mortgage can anticipate to pay around $45,000 more over the course of the mortgage.
