Global Gluttony Continues

Taking on debt in basic terms simply means stealing from our future income in order to purchase or consume something today. If we do enough of it what will be left of our future income in order to purchase or consume in the future?  Is there not an inevitable wall that will be hit?  Will the bowl of popcorn not eventually register empty if we gorge and stuff our faces in two fisted fashion?

Speaking of two fisted gluttony global debt jumped to a record $237 Trillion last year. Norway, Canada, Sweden and China all exceeded 2008 pre-crisis debt levels in the fourth quarter of 2017 by adding more than $70 trillion to the debt pile in comparison to a decade earlier.  According to the analysis done by the Institute of International Finance (IIF) among mature markets, household debt as a percentage of GDP hit all-time highs in Belgium, Canada, France, Luxembourg, Norway, Sweden and Switzerland.

This is a worrying signal with interest rates beginning to rise globally. Ireland and Italy are the only major countries where household debt as a percentage of GDP is below 50 percent.   Notwithstanding the ratio of global debt-to-gross domestic product fell for the fifth consecutive quarter as the world’s economic growth accelerated.  The ratio is currently 317.8 percent of global GDP, or 4 percentage points below the record high of Q3-2016, according to the IFF.

Considering the above we suspect as a collection agency Edmonton, collection agency Calgary and collection agency GTA we will continue to have our work cut out for us.