Tuesday, July 16, 2019

DEBT, DEBT, DEBT!

Date: 2019-07-17
Source: IMF blog

Article 1: https://blogs.imf.org/2018/04/18/bringing-down-high-debt/
Global debt hit a new record high of $164 trillion in 2016, the equivalent of 225 percent of global GDP. 

Article 2: https://blogs.imf.org/2019/01/02/new-data-on-global-debt/
Global debt has reached an all-time high of $184 trillion in nominal terms, the equivalent of 225 percent of GDP in 2017. 

Article 3: https://sg.finance.yahoo.com/news/number-day-global-debt-grows-221006381.html
Global debt grew by $3 trillion in the first quarter of the year to reach $246.5 trillion total, according to a report by the Institute of International Finance cited by Axios. "brought it to nearly 320% of the world's GDP".

From these:
- assume 1.5% interest rate of the debt
- assume GDP's profit(is there such a thing of GDP profit?) is 5%
merely enough to pay back interest, when to claw back the principal amount? more QE, QE, QE!
(借新债还旧债, refunding/refinancing)

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