The portal “El Pais” reported that according to the global Monetary Fund, the planet debt will scope its highest level in 2029 since the end of planet War II. Jesus Serwulo Gonzalez recalls that in fresh years the planet has faced respective crises. He listed 3 of them, namely the pandemic, the war in Ukraine, which contributed to the inflation and energy crisis and the trade war that US president Donald Trump started. The author calls these crises unforeseen, which may rise doubts as individual always benefits from each crisis. The Covid crisis was a good chance to cut down further industries that went bankrupt as a consequence of the request to close down activities while introducing drastic and seemingly irrational restrictions. The war in Ukraine has strengthened the function of the United States, the benefits of the military company and the oil and gas manufacture in a mediocre Europe. Finally, the creation of a customs war was to further hit the European manufacture at the expense of profits for the American side, and exposed the utter helplessness of continental leadership on the side of Ursula von der Leyen.
Irrelevant size but cost of debt
Global government debt is expected to exceed 100% of GDP from 4 years. Before the pandemic, the debt trajectory was forecast, not so steep. Canada, China, the United States, France, Italy, large Britain and Japan can be mentioned from the rich countries that have exceeded their debt of over 100% of GDP. However, their fiscal hazard is moderate. Smaller countries with little political capacity and access to finance are more at risk, despite little debt. "According to the report, in 2021 more than 100 countries already had a debt exceeding 60% of GDP and this figure will proceed to increase". More than half of them face or face debt problems. First of all, not the most crucial amount of debt, but the cost. After the pandemic, low-interest loans were offered, but now, as cleverly stated, the situation is completely different. "After the inflation crisis 2 years ago, central banks rapidly raised interest rates. The consequence is an increase in debt financing costs, which puts force on national budgets". In the end, banks have benefited from all these crises, which are a common denominator for them.
Greater needs, greater debt growth
However, the needs of states are growing, which gives banks an chance to make good money. "In addition to increased defence spending, it is essential to allocate more resources to combat climate change-related natural disasters, to an ageing population that weighs on pensions and wellness care expenditure, and to drive energy and technological transformation". The expanding deficit and debt are naturally the spiraling further debt erstwhile spending exceeds the revenue, which is logically suggested by the author of the article. A remediation of the fund for this is inactive the same – Either rise taxes or cut taxes. France is faced with specified a dilemma. It is besides possible to change the structure of spending by allocating money to those objectives that increase productivity and economical growth, namely education and infrastructure. taxation increases are recommended above 15% to boost economical growth. no of them will naturally mention that there is another way to deal with this problem – Refusing to repay unpaid debts and cancel them all, due to the fact that now more than 95% of the money is just a virtual sign without coverage in goods. However, the IMF as an institution of the global financier will not postulate specified a thing, as the Spanish portal seemingly cannot mention specified a postulate that needs to be urgently introduced and prosecuted against financial institutions. It would take the political will of the most crucial players in the planet to create Court of Finance. due to the fact that how else do you deal with a planet debt that in the first half of 2025 was $338 trillion, and Poland becomes a country with 1 of the fastest increases in debtbecause debt in Poland is presently expanding at PLN 1 million per day.
Bartosz Doborzyński
