From Baby Boom to Debt Doom: The Silent Crisis Killing Economies
innerkore.comRecommended reading on this topic (demographic debt trap):
The Great Demographic Reversal Ageing Societies, Waning Inequality, and an Inflation Revival - https://link.springer.com/book/10.1007/978-3-030-42657-6 | https://doi.org/10.1007/978-3-030-42657-6
Demography versus Debt - https://www.bis.org/events/conf160624/goodhart_presentation....
I looked into the presentation. (Demography versus Debt - https://www.bis.org/events/conf160624/goodhart_presentation....)
That's good. There was one point that I missed.
> Rise in debt ratios offset by falling interest rates, so debt service ratios mostly stable, or even declining
If inflation is higher forward looking due to demographic compression, interest rates cannot fall. This is the crux of the potential debt trap.
I agree with you. However, Inflation is resultant, not a fundamental thing that moves the pointer. Current, the Inflation scenario all over the world is because of Covid related quantitative easing.
Problem is, quantitative easing as the instrument is misunderstood by politicians. It creates/accelerates further debt burden on future generations. And, that just accelerated this debt trap for many nations.
The Demography dividend is already eroding fast. Natural Resources are already limited. So, Innovation is the only way out for nations. AI is a driver for that.
May be, we will see new world order in this lifetime only.