RE:Global shortage of oil in 2022?Holy Crackerjacks ... to *avoid* a financial crisis? Are you kidding?
The Covid-19 Pandemic Has Added $19.5 Trillion to Global Debt Here Are Reasons to Be Grateful—and Worried
By
Liz Capo McCormick,
Craig Torres,
Mathieu Benhamou and
Demetrios Pogkas Published: January 27, 2021 | Updated: January 28, 2021
In the battle against Covid-19, governments around the globe are on the cusp of becoming more indebted than at any point in modern history, surpassing even World War II.
From Germany to Japan, Canada to China, fiscal authorities have spent vast sums protecting their people and defending their economies from the colossal toll of the pandemic.
At the same time corporations, emboldened by unprecedented government support for markets, are selling bonds like never before.
The borrowing binge has come with a hefty price tag—$19.5 trillion last year alone, according to Institute of International Finance estimates. Still, compared to the alternative—a deep and lasting depression—that looks cheap.
In a world where rock-bottom interest rates have kept debt costs manageable, it’s also affordable. But if rates rise faster and higher than expected, the end of the Covid-19 crisis could mark the beginning of a reckoning.
Anschutz wrote:
At some point the world is going to clue in and realize that covid was a setup to hide a financial crisis, and that we are running out of oil and set to experience a severe energy crisis before enough renewables come online to offset.