Jun 29, 2017

Sott.net | June 29, 2017 | World's $217 trillion record debt over three times greater than economic output | Blogger: Market crashes: The Dotcom. Real estate bubble. The Debt bubble... Just wondering about the global economic crash (that will come in some form). Now, we have seen an increase of the horrific physical & psychological terror incidents that has divided many people into fear and strange behaviors.. Will the new normal be 'economic terrorism'? Thinking about The WannaCry ransomware attack quickly followed up by Petya-ransomware. Next phase: A Fire Sale (an all-out cyberwarfare attack). A three-stage systematic attack on a nation's computer infrastructure. Are all countries prepare for a collapse with no electricity, and since we're all born into the next generation of cashless society, closing of supermarkets, internet shops and anything else will close down and all hell will break lose. Are we ready?. Just alone in England, London’s Metropolitan Police uses Windows XP, vulnerable to hacking & ransomware. HMQ Queen Elizabeth: Britain’s largest warship uses Windows XP operating system.. So it seem that next major attack will be in UK? again, this time cyberattack.. |

© Reuters
Global debt levels have surged to a record $217 trillion in the first quarter of the year. This is 327 percent of the world's annual economic output (GDP), reports the Institute of International Finance (IIF).

The surging debt was driven by emerging economies, which have increased borrowing by $3 trillion to $56 trillion. This amounts to 218 percent of their combined economic output, five percentage points greater year on year.

The biggest contributor was China with $2 trillion. In June, the International Monetary Fund urged Beijing to tackle its ballooning debt, describing it as unusually high for a developing economy. Some estimates say China's debt stands at 260 percent of its GDP.

Advanced economies have cut debt levels by $2 trillion over the past year. However, the US is approaching $20 trillion, almost 10 percent of global debt.

"Rising debt may create headwinds for long-term growth and eventually pose risks for financial stability," the report said.

"In some cases, this sharp debt build-up has already started to become a drag on sovereign credit profiles, including in countries such as China and Canada," it added.

Emerging hard currency-denominated debt grew by $200 billion in the past year - growing at its fastest pace since 2014. Seventy percent of the debt is in dollars, the report found.

"Rollover risk is high," the IIF added.

The US and the EU could increase interest rates in the near future, thus making it more expensive for borrowers to repay, the report noted.