The world is buried under record debt levels and the global economy can't function in a high interest rate environment.
Governments around the world are feeling the squeeze as they try to deal with trillions in debt in a rising interest rate environment.
The US national debt makes up 32.4% of the total global government debt.
THE DEBT SPIRAL. Unless governments dramatically cut spending and/or raise taxes, this debt spiral will only get worse, especially if interest rates remain elevated.
The federal government spent $79.92 billion in interest expense to finance the national debt in November alone.
A lot of the debt currently on the books was financed at very low rates before the Federal Reserve started its hiking cycle.
The fuse is on a slow burn but at some point, the debt powder keg will blow.
https://schiffgold.com/commentaries/the-world-is-sitting-on-a-powder-keg-of-debt/
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