More Debt than Money
This is a blog that I started in October 2010, mainly for discussing my ideas on the economy, taxation and politics. Please add comments - I'll do my best to reply. If you are new, I would recommend watching one of my YouTube presentations (in French or English) . You can download a fully indexed pdf version (935 pages!) here .
I'm continuing with my crusade against the insanity of increasing interest rates "to control inflation". I was impressed by a report in the Economist from February saying that " The world's interest bill is $13 trillion - and rising" . They estimated the interest bill for companies, households and governments across 58 countries that together account of 90% of global GDP. They found that in 2021, the interest bill was $10.4 trillion - or 12% of combined GDP. By 2022, because of increases in interest rates,
Now, the Institute for International Finance, publishes its quarterly Global Debt monitor, which reported that at the end of Q1, debt had increased another €8.3 trillion to $305 trillion. This implies that the average interest rate on that debt is roughly 4.3%. That sounds plausible. It can be less, but can easily be much more - think of the interest rates charged by credit card companies. Current average rates in the US are 24.5% according to Forbes .
More Debt than Money