World owed itself $199 trillion in 2014; $57T added since financial crisis of 2008

World owed itself $199 trillion in 2014; $57T added since financial crisis of 2008

[Ed. – Someone needs a time-out.]

$57 trillion. That’s how much debt – comprising government, households and the private sector – has been added to the global total since the financial crisis, according to a new report from the research firm McKinsey & Co.

“When we look since the start of the financial crisis, debt levels haven’t fallen at all. They’ve gone up,” Mr. Dobbs said. “We’ve generally seen around the world a growth in debt. So, we’ve been able to enjoy ourselves by carrying on spending. Governments have been able to have less austerity around the world. But we’ve gotten to a position where it’s not clear how long we can carry on with that.”

The report – McKinsey set up this page where you can find both an executive summary and the full report – will come as a surprise to anybody who thought the post-crisis period was one of deleveraging. …

Global debt totaled $199 trillion in 2014, 286% of global GDP. In 2007, total debt was $142 trillion, 269% of GDP.

The single biggest contributor to this increase in debt came from China, which saw its debt quadruple, from $7 trillion to $28 trillion. …

Government borrowing has contributed mightily to the increase, adding $25 trillion; three-quarters of that has come out of advanced economies.

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