The scary fact the world is now facing is that we "owe each other too much," but even if countries have a lot of money, it doesn't mean they can pay off their debts, a credit analyst has told RT's Boom Bust.
Global sovereign debt stock can hit $50 trillion this year, ratings agency S&P Global warned in February. The US alone contributes to this a lot, as its national debt exceeded $22 trillion back then.
"Global debt is a big problem," Rick Rule, CEO of Sprott US Holdings Inc, told Boom Bust producer Daniel Brito when asked if there is any underreported thing the public should be aware of. He explained that while "allegedly the strongest economy in the world," if the US has such amounts in on-balance sheet liabilities at the federal level, there could also be off-balance sheet liabilities behind it.
"So if I was going to be afraid of one thing, I would be afraid of the fact that investors around the world seem to confuse liquidity, the fact that there is lots of cash in the system, with solvency, the sense that we can expunge the debt we owe each other at the public and private levels," he said.
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Source : RT Business News
Can cash solve the global debt problem? Boom Bust investigates
Can cash solve the global debt problem? Boom Bust investigates
