"global debt has grown by $57 trillion since 2007, according to McKinsey and Company. Global debt is now 286% of global GDP." according to Money Morning.
Surely this has to be bollocks. Global debt has to be zero, because for every debtor, there has to be a creditor, somewhere, and the two must cancel each other out. Unless, of course, it means that global credit is also 286% of global GDP, in which case it is a meaningless statistic. If A went out and borrowed $1 billion from B, B borrowed $1 billion from C and C then borrowed the first $1 billion from A, global debt would have gone up by $3 billion without any money actually changing hands.
Or am I missing something?
Debate Magazine
