Upcoming Financial Crisis
By Felix Dodds, Adjunct Professor in Environmental Sciences and Engineering and Senior Fellow, Global Research Institute, University of North Carolina and Eela Dubey Finance consultant In October there was a very interesting briefing by UNCTAD of its report on Debt Vulnerabilities in Developing Countries: “A New Debt Trap? and its Trade and Development report.” It was the first of these reports that interested me most due to its coverage on the alarming trends in debt and extent of the debt crisis.
As the report points out, the global economy has been fueled by debt. The world's total gross debt to GDP ratio is at 223 percent, with advanced economies holding the largest share of debt stocks. A debt stock simply refers to the total value of the debt that a nation owes to all lenders. According to the Report, at the onset of the global financial crisis in 2008, global debt stocks surpassed their historical record level at $142 trillion. Now, with global debt at roughly $240 trillio…
As the report points out, the global economy has been fueled by debt. The world's total gross debt to GDP ratio is at 223 percent, with advanced economies holding the largest share of debt stocks. A debt stock simply refers to the total value of the debt that a nation owes to all lenders. According to the Report, at the onset of the global financial crisis in 2008, global debt stocks surpassed their historical record level at $142 trillion. Now, with global debt at roughly $240 trillio…
