A World Awash in Debt
Regardless of whether there is another Greek “save”, preventing the actual default that still seems inevitable, the fact remains that adding debt to try and solve a debt crisis is a moronic approach when your interest costs already exceed your tax revenues (as is currently the case in Greece).
And it doesn’t stop there. There was roughly $4.5 trillion in new debt issued in 2010, three times the normal rate for mature economies.
The problem is that while the world is awash in debt that was designed to stimulate growth as many countries emerged from recession, the bang for our buck to Gross Domestic Product growth rates has plummeted versus previous generations.
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