The Debt Dilemma: A No-Win Situation

Governments are facing severe financial distress due to soaring debt, exceeding trillions accumulated over the last few decades, which incurs over a trillion dollars annually just in interest payments. This situation is echoed across major economies like Europe and Japan, leading many to the brink of bankruptcy. Maintaining low interest rates to manage debt costs heightens inflation, prompting people to invest in tangible assets, which drives prices up and erodes currency value. Conversely, raising interest rates to counteract inflation exacerbates the financial burden of existing debt. Essentially, global economies are trapped in a paradox where attempts to address one fiscal issue worsen another, creating an unsustainable cycle poised for potential collapse.