by GoldCore
◆ A World Debt Downgrade Warning (WDDW) has been issued by credit rating agency Moody’s due to deepening global geopolitical uncertainty and risks
◆ Moody’s has issued a debt downgrade warning to the entire world on fears that severe political turmoil from London to Hong Kong poses a threat to the global economy (see News below)
◆ Moody’s have a bleak outlook for government debt amid political instability in a report published just this Monday
◆ Moody’s said political and geopolitical turbulence is exacerbating a slowdown in national and global GDP growth, aggravating structural ‘bottlenecks’ centred on massive banking and sovereign debt and increasing the risk of economic or financial shocks
◆ Moody’s identified the emergence of influential “populist” movements and suggested this is undermining the effectiveness of domestic policy, weakening institutional strength and compounding social and governance risks
◆ “Overall, the global environment is becoming less predictable for the 142 sovereigns we rate, encompassing $63.2 trillion in debt outstanding,” according to the report