Joe Blogs: Global Economy has a Big Problem

For over a decade, the global economy operated under a paradigm of ultra-low interest rates, fostering an environment where cheap credit was the norm for both governments and private citizens. However, recent developments signaled a profound shift in this trajectory, most notably highlighted by Australia’s decision to raise interest rates to 4.6 percent. While this figure might have seemed manageable in previous decades, its impact today is far more significant due to the sheer volume of debt accumulated during the years of near-zero borrowing costs. As central banks across the United States, Europe, Japan, and New Zealand reverse their long-standing…