There is a lot of government and corporate debt out there, all over the world. Japan's debt to GDP is over 230%. Italy is at 134% and the US is at 108%. Most of this debt cannot be paid back outright and will need to be refinanced. However, how will companies and governments refinance their debts with rising interest rates? For many countries, a slightly higher interest rate means that their entire tax revenue will not be sufficient to service their debts.
How will central banks deal with this reality?
Submitted September 15, 2022 at 11:22PM by cambeiu https://ift.tt/nAqVHKW
