The following report is by the Trends Journal:
The amount of money owed by governments, businesses, households, and individuals grew by $10 trillion in this year’s first half to a record $307 trillion, the Institute of International Finance (IIF) said in a 19 September report.
France, Japan, the U.K., and the U.S. led borrowing increases among developed nations, the sector responsible for 80 percent of the new debt. Brazil, China, and India—the three largest emerging economies—were the heaviest borrowers among that group.
Global debt has added $100 trillion—almost a third of the current total—since 2012, the report said.
In this year’s second quarter, the ratio of global debt to global GDP rose to 336 percent, up 2 percent during the year’s first half. It was the second consecutive quarterly increase; before that, the ratio had been shrinking for seven quarters.
However, the ratio is still below the 360-percent peak reached during the COVID War.
The sudden rise in inflation was the main factor behind the sharp decline in debt ratio over the past two years.
The IIF’s report noted.
Also, governments have increased their spending commitments, from defense to stimulating national economies to financing the energy transition.
Now that inflation and wage increases are slowing, debt to GDP likely will grow past 337 percent before 2024, it predicted, as existing debt is refinanced at current higher interest rates.
Also, interest rates in many countries are expected to remain high into next year to ensure inflation’s demise.
As higher rates and higher debt levels push government interest expenses higher, domestic debt strains are set to increase.
The IIF said.
Our concern is that countries will have to allocate more and more to interest expenses. It will have long-term implications for countries’ funding costs and debt dynamics.
Emre Tiftik, the study’s primary author, said in a statement accompanying the report’s release.
Rising interest bills are a key risk to public finances and sovereign [credit] ratings.
Edward Parker, managing director at Fitch Ratings, said in a statement regarding the rising debt.
Fitch downgraded the U.S.’s creditworthiness earlier this year as debts mounted and the Congress indulged in prolonged haggling over conditions for raising the national debt ceiling before narrowly averting a government default.
Household debt-to-GDP ratios in emerging nations remain above pre-COVID-19 levels, largely due to borrowing by individuals in China, Korea, and Thailand, the study found. In contrast, the ratio in mature economies shrank to its smallest in two decades in this year’s first half.
Should inflationary pressures persist in mature markets, the health of household balance sheets, particularly in the U.S., would provide a cushion… against further rate hikes.
The report noted.
TRENDPOST: The global debt is a ticking time bomb.
As governments continue to borrow, a greater and greater share of their budgets will have to be used to pay interest on debts. The alternatives, both bad, are to keep raising taxes or keep cutting spending on education, social services, business development, and other desirable programs. Unless stopped, mounting debt eventually will cut into spending on infrastructure and other essential budget items.
Government debt also leaves less money that industrialized nations can invest in emerging markets, a circumstance that can leave hundreds of millions of people in poverty longer.
Households, particularly in the U.S., Europe, and China—where household debt has now reached a record level, according to the South China Morning Post—are using savings and credit cards to meet basic expenses. That is not a permanent solution.
The debt crisis overshadows inflation—yet, while analysts and policymakers fret over rising prices, there is no similarly strong focus on controlling spending.
Without a plan to gradually reduce spending—by governments, businesses, and households—the debt bomb will explode, with unpredictable consequences for individuals, governments, and social and political stability the world over.
TREND FORECAST: Repeating what we have long forecast, today, Wolfe Research chief investment strategist Chris Senyek told CNBC that the “Wall of corporate debt refinance starting in 2024 is another stock market headwind,” and that ‘“Refi’s are going to become a much bigger factor next year,” Senyek said in a note Tuesday. “[T]hat higher interest expense is likely to create a $5-$7/share headwind for S&P 500 operating EPS in 2024.”
Wolfe included a table showing $903 billion in U.S. corporate debt (excluding financial companies) coming due in 2024, up 343 percent from $204 billion in 2023. “That rises another 42 percent in 2025 to $1.28 trillion and 15 percent in 2026 to $1.47 trillion, before starting to come down.”
Again, making a bad debt bomb even worse is the Office Building Bust as building owners will not be able to pay off their debt or refinance it at higher interest rates as office tenants abandon buildings and/or lease less space as a result of the work-at-home trend brought to the world by the COVID War.
AUTHOR COMMENTARY
And this number is not even the real number: the real number cannot even be calculated or fathomed, as that would reveal just how much under-the-table and black market scamming goes on daily, and all the balance sheets and books that have been cooked that are given to the public eyes to see.
The piper must be paid and that time is coming super soon; and since most people can never repay it, they will pay for it in their blood by being killed-off, as per the goal to depopulate; which is ultimately being orchestrated by the Lord to judge the world and the people who hate and have rejected his word.
SEE: Bank Of International Settlements Warns Of $65 Trillion Of Debt Gone ‘Missing’
[1] Behold, the LORD maketh the earth empty, and maketh it waste, and turneth it upside down, and scattereth abroad the inhabitants thereof. [2] And it shall be, as with the people, so with the priest; as with the servant, so with his master; as with the maid, so with her mistress; as with the buyer, so with the seller; as with the lender, so with the borrower; as with the taker of usury, so with the giver of usury to him. [3] The land shall be utterly emptied, and utterly spoiled: for the LORD hath spoken this word. Isaiah 24:1-3
[7] Who goeth a warfare any time at his own charges? who planteth a vineyard, and eateth not of the fruit thereof? or who feedeth a flock, and eateth not of the milk of the flock? [8] Say I these things as a man? or saith not the law the same also? [9] For it is written in the law of Moses, Thou shalt not muzzle the mouth of the ox that treadeth out the corn. Doth God take care for oxen? [10] Or saith he it altogether for our sakes? For our sakes, no doubt, this is written: that he that ploweth should plow in hope; and that he that thresheth in hope should be partaker of his hope. (1 Corinthians 9:7-10).
The WinePress needs your support! If God has laid it on your heart to want to contribute, please prayerfully consider donating to this ministry. If you cannot gift a monetary donation, then please donate your fervent prayers to keep this ministry going! Thank you and may God bless you.
Satan is now filling the banks with all the paper money and his so called “wealth” (he has nothing). The banks are going to offer easy loans. It’s a trap. To all the brethren, DO NOT take out a loan. If you did, PAY IT BACK quickly.
Your spot on, Thomas!
You hit the bullseye, Thomas!
Thomas, ya took the words out of my mouth and yes I’m trying to pay back as best I can.
In my day (I’m 62) we were taught credit was a good thing and following and studying the KJV for 5yrs or so, I now know I/family were wrong; Praying the Lord gives me time to pay off house and cars, wife’s car needs only 2 more payments and it’s done, yee haa.