RIA Novosti, Natalia Dembinski. Translation by DayliGreatSwings.
The world debt amounted to $ 243 trillion. This is a record three times higher than global GDP, that is, the cost of all products and services on the planet. Economists warn that when this multi-trillion-dollar bomb planted under the world economy explodes, the crisis will break out worse than in 2008.
Why so much debt?
As follows from the report of the Institute of international Finance, global debt last year increased by 3.3 trillion dollars — to 243 trillion. Of these, 65 trillion accounts for the total debts of different contries — it is almost one and a half times more than in the crisis of 2009.
Extremely high debt-to-GDP ratio in developed countries, 390%. Most of all, this parameter increased in Japan, France and Australia. In emerging markets, on the contrary, debt growth has slowed to its lowest level since 2001.
Analysts state that such a huge and uncontrolled mortgage is the result of irresponsible policy of Western Central banks, addicted to printing money and issuing loans.
“Governments, companies, and individuals borrow to Finance economic development. Growth does not occur but they take even more. “The classic behavior of drug addicts - said investment analyst John Moldin. — The world’s Central Bank creates debts, not caring at all about what will happen to them in the future.””
Back at the end of last year, the international monetary Fund economists pointed to the unaffordable global debt as a key threat to the world economy. IMF chief Christine Lagarde recalled in this regard the wrong political decisions that followed the bankruptcy of Lehman Brothers.
The governments of most countries have failed almost all the reforms required to protect the banking system — primarily from the risky and rash actions of financiers, which caused a strong chain reaction to the collapse in 2008, the IMF said. Although some lessons have been learned over the past decade by regulators — including an increase in Bank reserves and tighter supervision of the financial sector, the measures taken are clearly insufficient.
To be continued: the Critical debt of the United States…