It is estimated that global debt just exceeded $100 trillion. That is such a large number that I can't even imagine it. I know there are analogies that I could use to visualize that size number, but even after looking at a couple, I just can't put my mind around it. All this begs the question, how is this amount of debt going to get paid back? I am starting to think that it never will. Some countries are going to inflate their way around it (which has never really worked before), and some are just going to default at some point (which is much more plausible). Current gross world product is about $80 trillion, so the whole globe has a debt to income ration of 125%. Individual countries that have that high of debt to income ratio are not considered good investments. This level of global debt has never existed before. We are in uncharted territory. It is going to be interesting how all this debt gets paid off (or not).
What do you think?
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