The yield on Germany’s benchmark 30-year bond climbed to the highest since 2011 as investors demand higher premiums to account for the record debt burden they need to absorb https://t.co/bpDrMgHtGn ...

As my friend Jeff Booth always says, the natural state of the free market is deflationary, right. And you know, we are getting to a point with AI and all the various other factors combined with that like robotics where we are going to see very strong deflation and you know a deflationary environment combined with a very big debt burden is very dangerous as as Japan has suffered for 30 years and will attest. I think it's really really important to know that that Trump sitting in that seat is going to be putt ...

The short-term debt cycle. As economic activity increases, we see an expansion. The first phase of the short-term debt cycle, spending continues to increase and prices start to rise.This happens because the increase in spending is fueled by credit, which can be created instantly out of thin air. When the amount of spending and incomes grow faster than the production of goods, prices rise. When prices rise, we call this inflation.The central bank doesn't want too much inflation because it causes problems. Se ...

Market Outlook - Japan was a global bright spot in 2025 [1] - Japan is likely to remain a global bright spot in 2026, despite concerns over its debt burden [1]

Distressed Hong Kong developer New World’s bond swap plan is set to trim about $1.2 billion from the company’s debt pile, but it is still facing liquidity strains with one of the heaviest debt burdens of any builder in the city https://t.co/hU5gadIWon ...

Senegal’s dollar bonds touched a three-month low amid renewed concerns over the West African nation’s ballooning debt burden and its ability to reach a deal for an IMF bailout https://t.co/TKtENASVMK ...

France must overcome its political impasse to tackle a debt burden that risks suffocating the economy, the head of the country’s central bank says https://t.co/T6kiMrw2aR ...

Deleveraging Dynamics - During deleveraging, spending decreases, incomes decline, credit vanishes, asset prices fall, banks face pressure, and stock markets crash, creating a self-reinforcing negative cycle [1] - Borrowers struggle as incomes decrease and debt repayments increase, leading to asset sales and market flooding, causing stock market and real estate market crashes, and bank troubles [2] - Lowering interest rates is ineffective in deleveraging because rates are already near 0%, unlike in a recession where it stimulates borrowing [3][4] Debt Burden and Reduction - The core issue in deleveraging is excessively high debt burdens that cannot be alleviated by lowering interest rates [5] - Four methods to address deleveraging include: cutting spending (austerity), debt reduction through defaults and restructurings, wealth redistribution, and central bank money printing [6] - Cutting spending leads to falling incomes, worsening the debt burden as incomes fall faster than debts are repaid [7][8] Consequences of Default and Restructuring - Borrowers' inability to repay loans impacts lenders' assets, causing bank runs and defaults, leading to a depression [9] - Debt restructuring, where lenders receive less or are paid over a longer period or at a lower interest rate, reduces debt but can cause income and asset values to disappear faster [11][12]

America’s debt burden is so big that letting inflation rip is one of the few options available to tame its real value. We explain why https://t.co/mPn2ZtE6Oi ...

Credit Rating - Fitch Ratings downgraded France's credit rating [1] Economic Challenges - Repeated government collapse has locked France into an enduring battle to contain a swelling debt burden [1]