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The Global Debt Trap: A Detailed Analysis of an Unprecedented Crisis

Current State: The Numbers Behind the Hypothesis The hypothesis that major economies are "trapped in unpayable debt" is not hyperbole—it reflects measurable reality supported by extensive data. As of 2025, the United States carries a debt-to-GDP ratio of approximately 124%, with the national debt surpassing $37 trillion. More alarmingly, annual interest payments now exceed $1.2 trillion, surpassing defense spending for the first time in history. China's situation, while appearing more moderate with official government debt at 88% of GDP, conceals a more dangerous reality: total social financing has reached 309% of GDP, and augmented debt (including local government financing vehicles) stands at 124% of GDP. Japan leads developed nations with a staggering 235% debt-to-GDP ratio. ​ Globally, public debt reached 93% of GDP in 2024 and is projected to exceed 100% by 2029—the highest level since 1948. The International Monetary Fund warns that under plausible adverse scenarios...