IMF: global debt has reached a record high, the apocalypse is approaching

Global debt hit another high of $247 trillion in the first quarter of 2018, according to a report released Wednesday. Of this figure, the non-financial sector accounted for $186 trillion, the International Monetary Fund (IMF) said.

The size of the global debt is more than $86 thousand for every inhabitant of the planet, and this exceeds the average annual per capita income in developed countries. The ratio of total debt to gross domestic product (GDP) exceeded 318%, according to a report by the Institute of International Finance (IIF). This comes amid record levels of corporate and private debt in many traditional markets.

The unprecedented debt load is just one of several ongoing concerns for investors, in addition to concerns about the Federal Reserve's tightening monetary policy and the fallout from the trade war.

Analysts warn that market volatility and likely inflation from the trade war currently brewing between the US and China could have an outsized impact on the current environment. assets, despite the remarkable resilience of markets to this day.  

Other statistics provide stark warnings about the dangers of the global debt burden. IMF First Deputy Managing Director David Lipton said late last year that high debt and low interest rates pose the greatest market risks. On the domestic front, US National Security Director Dan Coats called America's $21 trillion debt a "serious threat to economic and national security." According to the IIF report, borrowers and emerging markets are also considering specific risks, especially as yields and interest rates rise, making refinancing and repaying debt in dollars significantly more expensive.

Unprecedented levels of global debt and slowing economic growth around the world could be a sign of looming financial collapse. experts warn. And at the same time, many of them note that digital currencies seem to be quite a profitable alternative in a crisis situation. Their apolitical and decentralized nature provides an opportunity to rebuild the global financial system and avoid economic turmoil.