Global debt is colossal. It would be impossible to estimate
the total amount of both public and private debt. However, they are indications
of Global public debt being at least over US$30 000 000 000 000.The world continues to print Zimbabwe money, in the form of debt.
Private debt is hard to approximate. Classical economic
theory avoids looking at debt issues, the thinking being: if they are debtors
they are creditors, the book balances so we get a zero-sum outcome. Such faulty
logic has failed to exonerate public debt, given its inflationary consequences.
Debt should take its rightful position in economic study.
Money is debt, and debt fuels the economy, as such the views of Steve Keen need
mainstream analysis. Long term, the global economy will continue in decline,
given the destabilizing impact of debt.
Interest has a
compounding effect that grows faster than the world economy. Interest debt
cannot be serviced without expansionary economic growth. Until debt gets taken
seriously, in economic discourse, debt will continue to be the elephant in the
room of failed economic policy.
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