Greece isn’t the only country struggling with a huge debt. According to Endgame: The End of the Debt SuperCycle and How It Changes Everything, we’re all in trouble. The book gives a detailed, easy to read overview of the world economy and its interacting financial systems.
What does the Debt SuperCycle entail? “Over a period of about sixty years,” authors John Mauldin and Jonathan Tepper explain, “debt levels grew faster than incomes. By 2008 the burden of debt became too much to bear and the debt supercycle came to an end. People started deleveraging and banks started collapsing due to low levels of capital and large losses from loans people couldn’t pay back.” Their book is built on the premise that the accumilation of debt today will affect your ability to spend money in the future. It’s not rocket science. However, applying this on a macroeconomic level has proven to be quite complicated. “We forsee rising inflation in many parts of the world,” the authors note, “reductions in real income as people lose purchasing power due to higher food and fuel prices and more macroeconomic volatility.”
Endgame: The End of the Debt SuperCycle and How It Changes Everything is availble in the UA Library
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