•   
  •   
  •   

Money The world is drowning in debt

13:30  14 january  2020
13:30  14 january  2020 Source:   cnn.com

Debt leads Canadians' financial worries as 2020 dawns: CIBC poll

  Debt leads Canadians' financial worries as 2020 dawns: CIBC poll Debt leads Canadians' financial worries as 2020 dawns: CIBC pollThe online survey also finds that 71 per cent of respondents say they avoided borrowing money in 2019.

Debt is debt , and right now the entire globe is drowning in it. According to the report, government debt has risen the most sharply in Brazil, Saudi Whether the corporate media admits it or not, the whole world is rightfully preparing for this inevitability. Just look at the behind-the-scenes conduct of some

The World is Drowning in Debt : presented by Ian R Crane Australian Prime Minister Tony Abbot ramps up the ‘Fear Porn’, by warning that the nation would

a book on a table© Eva Hambach/AFP via Getty Images

The world's already huge debt load smashed the record for the highest debt-to-GDP ratio before 2019 was even over.

In fact, it broke that record in the first nine months of last year. Global debt, which comprises borrowings from households, governments and companies, grew by $9 trillion to nearly $253 trillion during that period, according to the Institute of International Finance.

That puts the global debt-to-GDP ratio at 322%, narrowly surpassing 2016 as the highest level on record.

More than half of this enormous number was accumulated in developed markets, such as the United States and Europe, bringing their debt-to-GDP ratio to 383% overall.

Aspiring Millionaires: This 1 Stock Is a Must-Buy!

  Aspiring Millionaires: This 1 Stock Is a Must-Buy! Lassonde Industries Inc is slightly undervalued. Here is why you should add it to your RRSP or TFSA today!Lassonde (TSX:LAS.A) develops, manufactures and markets a wide range of ready-to-drink fruit and vegetable juices and drinks as well as frozen juice concentrates in North America.

There is much they quarrel about. But there is one thing most investment strategists and economists can agree on: The world is drowning in debt . Global debt has grown to 4 trillion—three times the size of the global economy—according to the Institute of International Finance, a Washington, D.C

Debt , debt and more debt flared into global financial crises last week as central banks from Greece, to Spain and the United States grappled with the imperiled Sovereign debt was the issue of the week as countries around the world struggle with what increasingly look like unsustainable debt loads.

There are plenty of culprits. Countries like New Zealand, Switzerland and Norway all have rising household debt levels, while the government debt-to-GDP ratios in the United States and Australia are at all-time highs.

In emerging markets, debt levels are lower, for a total of $72 trillion, but they have risen faster in recent years, according to the IIF.

China's ratio of debt to GDP, for example, is approaching 310%, the highest level in the developing world. Investors have long kept a skeptical eye on the highly-leveraged country. Following a push for Chinese companies to reduce their borrowing in 2017 and 2018, debt levels rose again last year, the IIF said in its Global Debt Monitor report.

Such massive worldwide debt is a real risk for the global economy, especially because the IIF expects levels to rise even further in 2020.

Aspiring Millionaires: This 1 Stock Is a Must-Buy!

  Aspiring Millionaires: This 1 Stock Is a Must-Buy! Lassonde Industries Inc is slightly undervalued. Here is why you should add it to your RRSP or TFSA today!Lassonde (TSX:LAS.A) develops, manufactures and markets a wide range of ready-to-drink fruit and vegetable juices and drinks as well as frozen juice concentrates in North America.

The world 's already huge debt load will smash the record for the highest debt -to-GDP ratio in history in 2019. Global debt , which comprises borrowings from households, governments and companies, grew by trillion, to nearly 3 trillion, in the first nine months of last year, according to the Institute

There is much less discussion about debt , which has hit another record high. The global debt just reached 7 trillion for the first quarter of this year. The U.S. debt to GDP exceeds 100 percent. The flood waters are rising, the dams are broken, and we are literally drowning in debt .

"Spurred by low interest rates and loose financial conditions, we estimate that total global debt will exceed $257 trillion" in the first quarter of 2020, the IIF said.

The Federal Reserve lowered interest rates three times last year, and the European Central Bank's benchmark rate is still at its post-financial crisis lows.

Despite favorable borrowing conditions, the refinancing risk is massive. A total of more than $19 trillion of syndicated loans and bonds will mature in 2020. It's unlikely that all of these will be refinanced or repaid.

Another issue that the report brings up is the financing needs for urgent climate change action.

The United Nations' Sustainable Development Goals require $42 trillion of infrastructure investments by 2030, but "countries with limited borrowing capacity could face severe challenges in meeting development finance needs," the IIF said.

Bombardier's financial challenges worry ratings agencies, prompting downgrades .
Bombardier's financial challenges worry ratings agencies, prompting downgradesS&P Global Ratings changed its outlook to "negative" from "stable" on Friday, following in the footsteps of Moody's Investors Service, which did the same Thursday evening.

—   Share news in the SOC. Networks

Topical videos:

usr: 0
This is interesting!