Just remember that every year the World's Economy has to grow enough to cover the interest rate payments in all outstanding debt (or money itself has to inflate away fast enough to offset it, and since interest rates are naturally set up to be above inflation - otherwise Financial Institutions would be losing money - that's unlikely)
There are two ways to offset this:
- Reduce the amount of outstanding debt.
- Lower interest rates (which is what was done after the 2008 Crash, leading to the slowest recovery from a Crash in at least a century) so that for the same amount of debt there is less interest to pay.
Overall debt is increasing as per the article.
Interest rates are below historical average since what was done after 2008 which was supposed to be temporary wasn't fully wound back, so there's a lot less room there for central banks to do something about it.
Actually solving the underlying problems behind the 2008 Crash was pushed to the Future with some interest rate engineering, and it looks a lot like The Future Is Today, and this time around rather than just an over-indebtness plus Finance overextension problem, we seem to have over-indebtness, a massive Tech bubble (like in 2000) AND asset price bubbles in all manner of asset classes, from economically peripheral things like crypto to core things like housing.
I've been expecting a massive crash since I saw what passed for a "solution" back in 2009-12, but shit is turning up to be way worse than I expected due to all the additional resource malallocation and mispriceing in the Economy.
