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The Problems Of High Debt

Summary

Debt growth is outperforming GDP growth.

Debt is putting pressure on future growth.

Corporate debt is surging while earnings decline.

I have read a lot about the debt situation in the US. Debt can be used in many good ways as most of my readers will be aware of, but if we get closer to the end of a business cycle we get a situation where debt is pushing growth lower and starting to behave like a economic headwind.

In 2015, nominal GDP soared about 550 billion USD. Nonfinancial debt however surged about 1.910 trillion USD. 3.5 times as fast as the 'economy'. Nonfinancial debt is all debt excluding debt from financial companies like...


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