The debt is a problem but it has always been there , more so since the GFC, but interest rates will remain relatively low and they will continue to print money if need be otherwise the world economy will end up in a black hole, which we would still be in since 2007/09 if Goverments and Central Banks had not gone into lowering interest rates to virtually zero and printing trillions of $.
The only hope the world has to get out of that predicament (in part) is to continue to fuel the fire (QE , low interest rates and a Positive yield curve) to achieve strong economic growth and even a period of higher inflation, which will bring in much higher tax collections by Governments which will go some way to reduce debt.
Thats it
After a period of strong growth and higher inflation worldwide , after huge tax collections interest rates will rise , debt will have been reduced in part and then we hit the proverbial brick wall , again . But IMHO that will happen some years down the track, after a period of prosperity.
Higher tax collections and inflation will reduce/devalue debt in real terms. There is no other way out.
AIMHO
DYOR
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