Such debts will become costlier to service if Western interest rates rise and currencies strengthen.
While U.S. interest rates have already been raised four times, the euro has surged to one-year highs after Draghi’s comments on Tuesday, while German 10-year government bond yields – the benchmark for euro area borrowing – have doubled over the past two days.
There was a $3 trillion rise in debt levels across the developing world, which have debt totalling $56 trillion. That is 218 per cent of their combined GDP, a five percentage point rise over year-ago levels, it said.
China accounted for $2 trillion of this rise, with its debt now at almost $33 trillion.
Advanced economies had continued to deleverage, cutting total public and private debt by more than $2 trillion in the past year, but this was mainly due to the euro zone. Total U.S. debt rose $2 trillion to more than $63 trillion by the first quarter of this year.
Jim Rogers who made his fortune along with George Soros in commodities and currencies has been declaring that the world will have a terrible financial crash. Jim is indicating that the risks levels are high because of the high global debt levels.
Brian Wang is a prolific business-oriented writer of emerging and disruptive technologies. He is known for insightful articles that combine business and technical analysis that catches the attention of the general public and is also useful for those in the industries. He is the sole author and writer of nextbigfuture.com, the top online science blog. He is also involved in angel investing and raising funds for breakthrough technology startup companies.
He gave the recent keynote presentation at Monte Jade event with a talk entitled the Future for You. He gave an annual update on molecular nanotechnology at Singularity University on nanotechnology, gave a TEDX talk on energy, and advises USC ASTE 527 (advanced space projects program). He has been interviewed for radio, professional organizations. podcasts and corporate events. He was recently interviewed by the radio program Steel on Steel on satellites and high altitude balloons that will track all movement in many parts of the USA.
He fundraises for various high impact technology companies and has worked in computer technology, insurance, healthcare and with corporate finance.
He has substantial familiarity with a broad range of breakthrough technologies like age reversal and antiaging, quantum computers, artificial intelligence, ocean tech, agtech, nuclear fission, advanced nuclear fission, space propulsion, satellites, imaging, molecular nanotechnology, biotechnology, medicine, blockchain, crypto and many other areas.