The World Economy Is Piling Record Amounts Of Debt In The Middle Of A Pandemic

Image: The World Economic Forum

World Economic Forum: Countries are piling on record amounts of debt amid COVID-19. Here's what that means

* Public debt levels and deficits have hit records during the pandemic.

* Many experts argue it’s a sound means to fund the recovery.

* Such borrowing has been further enabled and encouraged since the financial crisis due to central bank efforts.

As public debt in the US recently hit a peak not reached since World War II, a funny thing happened: the public didn’t really seem to mind. The debt load in the US has only continued to rise, far exceeding the size of the country’s economy as measures are enacted to cushion the impact of COVID-19.

The US is not alone – governments around the world have been borrowing heavily as they seek to counter the pandemic. While this doesn’t necessarily come as a surprise, the relatively subdued reaction among conservative experts might.

The pandemic seems to be further reshaping how many people think about sizable public debt. Those who may have once been spooked by the concept seem to be okay with it now, if the money’s put to good use and the interest due remains relatively low.

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Update: COVID-19 hit commodities hard - these 8 charts show what we can expect (World Economic Forum)

WNU Editor: People I know and trust when it comes to money are talking more and more of a global reset. If this debt bubble trend continues, they are probably going to be right. After-all. All good things do come to an end. But for the moment everyone is happy to live in this fantasy land .... that wealth can be created by printing it.

On a side note. Looking at the above graph I am not surprised that the Russian government has stayed away from accumulating debt. When Russia's debt bubble burst in the early 1990s, the depression that ensued took over a decade to overcome. No one in Russia (myself included) want to go through that again.