Global economy headed for massive crisis, warns widely respected Geneva Report
by: J. D. Heyes
NaturalNews.com
Wednesday, October 22, 2014
A respected report that summarizes the world economic outlook has said that record global debt could trigger a massive economic crisis that would last for years, as the International Monetary Fund (IMF) cut its global economic growth projections.
According to The Guardian and other sources, global debt has skyrocketed even though many governments (the U.S. not included) have worked to reduce public and private borrowing. Now, the renowned Geneva Report is sounding alarm bells, saying that a “poisonous combination” of rising debts and lower growth could lead to yet another global economic crisis.
As reported by The Guardian, the European continent is experiencing some drop-off in household debt:
Modest falls in household debt in the UK and the rest of Europe have been offset by a credit binge in Asia that has pushed global private and public debt to a new high in the past year, according to the 16th annual Geneva report.
In May, the Federal Reserve reported that U.S. household debt had declined 1 percent, to 2006 levels — down to $11.2 trillion from a peak of $12.7 trillion in 2008.
The Geneva Report, meanwhile, noted that the total burden of global debt, not counting the financial sector, rose from 180 percent of world output in 2008 to a mind-boggling 212 percent in 2013.
‘Global growth could be weaker for longer’
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