The result of the low inflation that the world has enjoyed has come at the price of debt and fairly stagnant growth.
Having played pass the parcel with the worlds debt problems since the financial crisis in 2008 erupted with the collapse of Lehman Brothers, the bundle has now reappeared as sovereign debt. The latest attempt to hide the problem is through the ECB and probably next through the IMF.
Attempts at austerity don’t match the political voting system so without the traditional inflation package to reduce the problem it will prove some struggle to solve.
The question is when will the debt problem drop out of the headlights for the worlds stock markets. Whilst every effort is being made to divert attention it will keep popping up as governments attempt to refinance their debt and push the problem further down the line.
However it is part of the world economy and once perceived as manageable it will go away…until the next time.
