The Great Deleveraging and the Impact of Higher Interest Rates on Debt

The podcast discusses the concept of the great deleveraging, which refers to the excessive debt buildup resulting from zero interest rate policy and quantitative easing. As interest rates rise, individuals and companies are facing challenges in paying down their debt, which leads to a reduction in leverage in the system. This deleveraging process has the potential to impact trillions of dollars in debt. The podcast suggests that higher interest rates and the great deleveraging may have a more significant impact on the economy than initially anticipated.