The global debt rose to $ 280 trillion. This whole debt, makes the economies do not grow, and end up increasing the debts, and damaging the economy.
According to the IIF, which brings together 400 banks in 70 countries, global debt has increased faster in recent years and beyond what was expected after the start of the pandemic. This value is unprecedented. Never has the world created such a large amount of debt.
World debt is 3 ½ times everyones product in one year. Making this amount dangerous for the economy, because the debt terms have to be rolled over, and interest is being placed, and the debt is increasing.
Carmen Reinhart, chief economist at the World Bank, said.
A silent crisis is gaining momentum and could hamper recovery in the years to come. While it does not always include panic and races, it imposes multiple costs, "" Restructuring and recapitalizing banks to restore solvency can be costly for governments and taxpayers, and new loans tend to remain depressed, reducing activity. "
The credit crisis also has distributional effects, because it affects small and medium-sized companies and low-income families more acutely.
Research shows that indebtedness generates financial crises, and compromises the future.
The IMF defines: "with the expected increase in bankruptcies, part of the private debt can migrate to the public sector through financial bailouts". In short, countries end up having debt.
And knowing this, banks make private companies indebted, so that the losses fall on governments. This could lead to a financial crisis like the stock market crash in New York.
The IMF stated "In this context, inflation expectations can rise very quickly, once governments start to run large fiscal deficits".
Possibly the process that this is called secular stagnation, which defines the slowdown in productivity, lower capital intensity for profitable projects, aging and low population growth, with increased life expectancy and worsening income distribution, it would be a brake on consumption.
In short, what we have is a breakdown of the capital system, and a need for government intervention to inject money they don't have. This crisis cannot be managed, as it is global. Thus it goes directly to the core of the world economic system, and economic disorder can create social disorder, with chaos in groups that can go hungry, and many difficulties.
This is clearly defined in the Bible as the effect of the fifth cup. But many people may not accept the fact. The question is simple. With such chaotic systems, in addition to diseases, and the destruction of nature. The future that presents itself to the world is not a good one. So either Jesus returns, or chaos can completely take over the world.