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Open original source ↗This is my Everything Code framework in a single chart...
Theres no growing out of debt at these levels, so governments have no choice but to print to pay the interest and borrow more on top.
On the face of it, we're all fucked.
But I find myself oddly optimistic. For decades we've been piling on debt and hoping a productivity miracle shows up, and for the first time it's not a far off impossibility with the dawn of the Exponential Age.
The Everything Code explains why we're stuck, how demographics and debt leave debasement as the only option and why that ends up driving almost every asset price. My Exponential Age framework is where we find our way out...
I've been building both for years now, and for the first time I've put them together in one place... my first book, The Everything Code.
The Everything Code is out November 3rd. Preorder your copy today: https://t.co/dHpuaKcGsl
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Global government debt has surged to unprecedented levels: The Debt-to-GDP ratio of emerging market economies is up to ~78%, its highest level in data going back to 1880. Since the 2008 Financial Crisis, this metric has more than doubled and surpassed the ~45% peak seen during World War II. Before 2020, this ratio never exceeded 60% and is now approaching 80% for the first time. Meanwhile, the Debt-to-GDP ratio of advanced economies is up to ~108% and has been above 100% for the last 10 years. Before the 2008 Financial Crisis, this figure stood below 80%. Deficit spending has become a global crisis.
KobeissiLetter ↗