Central Bank Ownership of Domestic Government Debt This chart shows the rise of central banks as holders of sovereign debt, pushing sovereign yields to historically low levels. Image: Deutsche Bank Global Research
Federal Debt Held by Public and Annual U.S. Deficit The U.S. budget deficit may quadruple in 2020 to almost $4 trillion, and the stimulus will take the U.S. national debt to wartime levels. Image: Bloomberg
U.S. Federal Government Debt Held by the Public in % of GDP The U.S. federal government debt is on track to balloon to World War II levels. Image: CommerzBank Research
World Sovereign Debt and Global Central Banks’ Holdings of Domestic Sovereign Debt Central Banks now own a high percentage of all global sovereign debt, leading to higher debt levels in coming years. Image: BofA Merrill Lynch Global Research
U.S. Total Debt to GDP Ratio and Economic Growth by Cycle This nice chart clearly shows that U.S. GDP is weaker today than in the past, despite higher debt levels. Image: Real Investment Advice
Household Debt as a Proportion of GDP Household debt levels in China are equivalent to those in advanced economies. Image: The Wall Street Journal
U.S. Debt Ratios to GDP (Household, Corporate, Government) U.S. households remain far less in debt than during the Great Recession, but U.S. corporate debt continues to rise rapidly and has exceeded record levels . Image: Pictet Wealth Management
Debt and Demographics Our world is aging with high levels of debt and low interest rates (maybe for a long time). Image: Fidelity Investments
Is U.S. Household Debt a Problem? Not really, right now. Actually, the level of household debt alone does not tell an accurate picture of the current situation. However, U.S. household debt to GDP is much lower, U.S. household debt service payments as a percent of disposable personal income and U.S. household financial obligations as a percent…
Why We Should Not Be Afraid By China’s Debt? In China, there is a high level of savings and controls on capital outflows. Currently, most of the Chinese savings are lent or invested in China. So, China’s debt reflects the Chinese savings rate. It would be much more worrying if China’s debt led to external debt,…
Leverage in the U.S.: Households and Corporations This chart shows the divergence between U.S. non-financial corporations leverage and households leverage. U.S. corporation debt reached a record level of $10.12tn. Image: Gavekal, Macrobond