As the United States embarks upon what should be an interesting debt ceiling debate, a comprehensive report suggests that the total global debt is inching towards $200 trillion, and it just keeps ballooning without any respite in sight.
McKinsey concluded in a report that the planet has added close to $60 trillion since the economic collapse to a total of $200 trillion. This is approximately three times the size of the entire global economy, and your share is about $20,000.
What makes the report interesting is that these numbers are from 2014. Therefore, we do not have a firm number of how much debt has been added in the last two years.
You shouldn’t expect governments to rein in the debt anytime soon. As a growing number of countries are taking advantage of 50-, 70- and 100-year bonds because of historically low interest rates, politicians are just pulling out the piece of plastic.
U.S. Treasury Secretary Steven Mnuchin recently said that the federal government is considering long-term bonds (SEE: Trump administration studying 50- and 100-year bonds: Mnuchin). This means that you can expect more spending, more debt and an increase to the debt ceiling.
This is what governments do best: kick the can down the road and leave future generations to clean up the mess.