Global debt just blew past $324 trillion, driven by governments, businesses and households piling on loans since the 2008 crash and turbocharged by pandemic spending. The U.S., China and Japan top the leaderboard—Tokyo’s central bank even owns over half of Japan’s bonds—and emerging markets are far more leveraged than you’d expect. Low rates have been the growth hormone here, but as central banks hike, servicing these mountains of obligations gets riskier by the day.
So what happens next? We break down who’s issuing all that paper, why debt rarely shrinks, and whether this credit binge can keep going without tipping us into a financial meltdown. Spoiler: sustainability is in question, but smart policy moves (and maybe a dash of crypto diversification) could buy us more time—just don’t bank on no curveballs ahead.
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