Crisis Looms? Global Debt has Swelled By a Massive $57 TRILLION Since 2007: “The figures are as remarkable as they are terrifying”

Friday, February 6, 2015
By Paul Martin

Mac Slavo
February 6th, 2015

Global debt has jumped by $57 trillion in less than a decade, a number unimaginable in practical terms. That’s 17 percent — nearly one fifth — of the world’s GDP.

The number has climbed significantly since the last economic crisis for most entities — government, companies and household budgets alike — making the prospect of another financial nightmare all too possible:

The figures are as remarkable as they are terrifying. Global debt – defined as the liabilities of governments, firms and households – has jumped by $57 trillion, or 17pc of global GDP, since the fourth quarter of 2007, which was supposed to be the peak of the bad old credit-fuelled days. In 2000, total debt was worth 246pc of global GDP; by 2007, this had risen to 269pc of GDP and today we are at 286pc of GDP.

So what, exactly, is going on in the global economy? The one big lesson from the bubble days was that we had too much debt. Yet fresh figures from McKinsey examining 47 of the world’s most important economies show that the situation has become worse rather than better. In net terms, there has been no deleveraging – in fact, economies have levered up further.


Companies and people are much more likely to go bust, taking banks down with them. A low-leverage economy inevitably does better in a downturn than a high-leverage one.

The Rest…HERE

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