$200 Trillion Global Debt Bubble

Written by Staff Writer

Debt TNT$200 trillion in global debt at risk if trust falters -Sidney Morning Herald
"The Organization for Economic Co-operation and Development (OECD) has warned almost $200 trillion in public and private debt could be the catalyst for another global economic crisis if trust in government and financial institutions deteriorates...

The OECD also said the destruction of trust following the global financial crisis (GFC) had contributed to the rise of crypto-currencies, which themselves were exacerbating the globe's economic risks. The OECD is forecasting global economic growth to edge down to 3.3 per cent over 2019, partly in response to the US-China trade war and the fallout of the Brexit debate in Britain and Europe. It expects Australia to grow at 2.7 per cent. In its annual report into key issues facing businesses and the financial sector, the Paris-based think-tank said governments had invested huge amounts of political capital and public finances into rebuilding the trust destroyed across the financial sector by the GFC in 2008....A decade after 'excessive debt' in the housing market brought the global economy to its knees, the OECD said even more debt today could precipitate a loss of trust in financial and political institutions. 'Should global economic growth and credit conditions continue to deteriorate, a new bout of financial stress could erupt, the financial markets could become more vulnerable to episodes of contagion,' it said."