Patrick Boyle On Finance The Alarming Rise in Global Debt!
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May 26, 2025 The podcast dives into the alarming rise in global government debt, projected to exceed $100 trillion. It discusses the impact of trade wars, rising interest rates, and the risks for investors. The challenges of onshoring manufacturing amidst national debt are explored, alongside the implications of political borrowing habits. There's a critical look at the influences of tariffs and inflation on economic growth, highlighting the urgent need for fiscal reform to address unsustainable levels of debt.
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Japan’s Debt Crisis Risks
- Japan's debt-to-GDP ratio is over 240% due to economic stagnation and aging population.
- Low interest rates masked risks; rising rates now threaten debt sustainability.
US Debt Growth Unusual Trend
- US debt-to-GDP ratio is near historic highs, expected to reach 125% in a decade.
- Debt grew even during economic expansions due to persistent budget deficits.
Who Buys Government Bonds?
- Pension funds are major buyers of government bonds as safe investments.
- Federal Reserve holds nearly a quarter of US government bonds, others held by various investors.