EDITOR'S NOTE: There are around 22 countries whose ratio of government debt to GDP exceeds 100%. A few have even exceeded the 200% mark. Contrary to what you might think, these are not third-world countries, but major economies that include the US, UK, and some of the more developed economies in Europe and Asia. So, what does it all mean? If the largest countries are driving the global economy, it appears that most are carrying debt loads that may exceed their capacity for payment. While the likelihood of a global debt crisis is something that’s not on mainstream media’s radar, it helps to assume that such a storm is brewing. And while most viewers are fixated on the latest economic reports and corporate earnings, it’s safe to say that nobody sees the tsunami, perhaps mistaken for storm clouds, that’s been darkening the skies.
Global debt is rising at the fastest pace since World War Two as economies struggle to meet the demands of high energy prices and an increasing cost of living crisis.
In this video, Capital.com examines the impact of inflation and rising interest rates on government debt and whether the world could be heading for another debt-driven crisis.
Originally published on Capital.com.