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How to get out of the Debt Trap? Navigating the Global Financial Turmoil

Amidst the backdrop of financial tumult, preceding both the COVID-19 pandemic and the Russia-Ukraine war, global economies experienced a precarious cycle of recovery. However, this resurgence, culminating in 2018, relied heavily on currency imbalances and interest rate cuts, fostering a colossal global debt burden. This debt – now nearing 300 trillion USD including over 100 trillion in public debt, or almost 120% of global GDP – presents a formidable challenge due to its complexity and escalating magnitude. The disparity between this debt and the stagnant GDP in Western countries underscores a systemic distortion, fostering distrust in the monetary system and fuelling volatility in financial markets. […]