Hey Guys,
I have a question for you…
What's the biggest bubble in the world?
Many may point to stocks, crypto or other “risky” assets. But these of course pale into comparison to the global debt burden.
Even before we were hit by the pandemic, it stood at pretty unsustainable levels. And today, we sit with a situation in which global debt stands at a staggering $226 trillion. This is a number that the IMF has recently come out to highlight as one of the biggest risks to global economies.
The reason that it is even more pressing now than it was even a year ago is because of central bank policy. We all know that rates are going to go up and this therefore means that debt servicing costs are also likely to climb.
While the Fed expects to raise rates 3-4 times in the coming year, there are analysts who think that we could even see 7 rate hikes over the year! It's all contingent on whether the hikes are enough to stave off the inflation (unlikely).
We have already seen the pre-emptive impact of potential higher rates on the stock markets / crypto markets. However, I am interested in analysing what impact these higher rates could have on the global debt burden. Could we start seeing defaults or other forms of financial contagion? It has happened before.
This is exactly what I will be covering in my video today! I look at the global debt burden and analyse it in the context of rising interest rates at the Fed.
This is one you don't want to miss!
P.S. Enjoy the disclaimer / outro – it's for all the Zoolander fans 😅
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⛓️ 🔗 Useful Links 🔗 ⛓️
IMF Report on Debt: https://blogs.imf.org/2021/12/15/glob…
Chinese Debt Risks: https://www.cnbc.com/2021/06/29/china…
Global Debt Soaring: https://www.ft.com/content/be32e263-0…
Corporate Debt Bubble: https://www.youtube.com/watch?v=CCmdm…
Coronavirus & Global Debt: https://www.bloomberg.com/graphics/20…
Credit Spreads Widening: https://www.reuters.com/business/us-c…
US Zombie Companies: https://www.bloomberg.com/news/articl…
Fed Rate hikes & Debt Crisis: https://www.cnbc.com/2022/01/24/fed-r…
Household Debt Stats: https://www.statista.com/chart/19955/…
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📜 Disclaimer 📜
The information contained herein is for informational purposes only. Nothing herein shall be construed to be financial legal or tax advice. The content of this video is solely the opinions of the speaker who is not a licensed financial advisor or registered investment advisor. Trading cryptocurrencies poses considerable risk of loss. The speaker does not guarantee any particular outcome.
