Global Debt Bubble Getting Worse -- Economic Collapse - Stock Market Crash

Global Debt Bubble Getting Worse -- Economic Collapse - Stock Market Crash







Bank of America short while ago calculated that since the collapse of Lehman, government debt has intensified by $30Trillion, corporates debt by $25 Trillion, household by $9 Trillion, and financial debt by $2 Trillion. And with central banks awaited to support government debt, Bank of America warns that the biggest recession risk is disorderly rise in credit spreads and corporate deleveraging. From its side the IMF is warning that the world debt rises to 226% of GDP. Low rates fuel the risks. Expansive monetary policies have saved growth but push investors towards riskier and less liquid assets. Debt growth continues inexorably, especially in emerging countries. World debt reached 226.5% of GDP in 2018 and continues its inexorable growth, at a breath of 188 trillion dollars, according to preliminary estimates released on Wednesday 16 October by the IMF, during the press conference for the presentation of the Fiscal Monitor. The IMF then warns against the side effects of ultra-low rates: the difficult hunt for yields pushes investors, including insurance and pension funds, towards riskier and less liquid assets. Even for the non-financial sector, then, supervisory tools such as those introduced for banks are needed, the Fund warns in the Global Financial Stability Report, also released . Eight thousand billion dollars. Put like this they seem unreal numbers. From comics. But they are real numbers. According to the latest research by the Institute of International Finance (IIF), public and private debt globally in the first quarter of 2019 alone increased by this figure: by 8 thousand billion dollars. This is the largest quarterly increase since the first quarter of 2016, which brings global debt to the figure of 247 thousand billion dollars. A mountain equal to 318% of the GDP of the whole world. These numbers are the effect of a decade of ultra-expansionary monetary policies, which have increased global liquidity and brought interest rates to zero (or even below zero) in many parts of the world. This has favored everyone's use of debt: businesses, states and families.