Global debt crisis in two charts

GLOBAL DEBT CRISIS IN ONE CHART
byu/Gullible_Picture_996 inShitEconomy

“World government debt surged to a record $109 TRILLION, or ~95% of global GDP.

At the same time, corporate debt jumped to $179 TRILLION, also an all-time high, and equivalent to ~155% of global GDP.

This makes total government and corporate debt up to nearly $300 trillion, or ~250% of global GDP, only below the 2020 Crisis levels.

Before 2008, major economies had relatively high interest rates but much lower debt, while the post-crisis era combined rapidly rising debt with ultra-low rates and central-bank support.

That regime is now reversing, leaving governments with record debt and significantly higher borrowing costs at the same time.

Governments and corporations are increasingly competing for the same pool of global savings, forcing investors to demand higher yields to absorb the growing supply of debt.

This creates a dangerous feedback loop as higher yields increase debt-servicing costs, worsening fiscal deficits and forcing governments to borrow even more, pushing yields even higher.

Nothing stops this train.”