Forward Thinking on ‘megathreats,’ ‘polycrises,’ and ‘doom loops’ with Nouriel Roubini
Forward Thinking
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The Mother of All Debt Crysies
In the 1970s, public debt as a share of GDP was less than 100% of GDP. By 1999 that figure had risen to 350%. Now it is 420% of GDP in China and rising. But while debt ratio were high, debt servicing ratios were low. So even institutions that were effectively insolvent and bankrupt could survive. And now we're starting to see how this increase in debt servicing ratio may lead to whoever severe recession is likely in the next year.
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