October 06, 2016
IMF: If Everyone Could Please Stop Taking Out Loans That Would Be Great
The IMF warned that global debt reached a high of $152 trillion or 225% of global GDP. Debt burdens rose due to a combination of low growth, low inflation and low interest rates that makes it more enticing to take on debt and harder to pay it back when it is due. The IMF is particularly concerned about private sector debt (think subprime mortgages and leveraged buyouts) in advanced economies and other important countries like China and Brazil. With so much debt sloshing around, the IMF and the World Bank are embarking on a defense of free-trade and open markets, hoping to avoid a protectionist sentiment that will only make things worse. We aren’t too optimistic considering how unpopular those two institutions are.
GOOD VIDEO: The Crazy Story of the World’s Debt
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