It is no secret that global debt levels have skyrocketed since the financial crisis. Government, corporations, and households – they have all gone into debt to produce prosperity – if that makes any sense.
With the global economy cooling down and another economic collapse on the horizon, the question is: do we have enough bullets to fire to stave off the inevitability?
Not quite, but don’t worry.
According to S&P Global Ratings, businesses, governments, and households increased their combined debt load by 50 percent in the 10 years to $178 trillion. The government borrowed an extra $62.4 trillion in this time span.
Here is a chart, using data from the Bank of International Settlements (BIS):
But S&P does not see the same systemic risks.
“Global debt is certainly higher and riskier today than it was a decade ago, with households, corporates, and governments all ramping up indebtedness,” S&P Global Ratings credit analyst Terry Chan said in a statement. “Although another credit downturn may be inevitable, we don’t believe it will be as bad as the 2008-2009 global financial crisis.”
The next recession will be immense because are more in debt than ever before – and they have nothing to show for it.
When a TSA agent gropes you, should you punch him in the face? You’ll go to jail, but TSA agents might think twice about molesting people if enough Americans do this.
I do not worry about TSA agents, I just will not fly. Last flight 2009, before that 1986. Not going to put up with the B.S. just to fly. I will be going on a 5 month trek starting in May and will put over 8,000 miles on my car. Visiting family and friends in CA, OR, NV, OK, TX, VA, TN, AL, NC, SC, GA, and FL, I will enjoy every mile.