World governments are issuing more debt than ever: Global sovereign bond issuances hit a record ~$18 TRILLION in 2024. ~$16 trillion of debt was issued by developed countries, and ~$2 trillion by emerging market economies.
byu/Boo_Randy_II inSilverDegenClub
Governments worldwide are issuing debt at an unprecedented pace, pushing global sovereign bond issuances to a record $18 trillion in 2024. Developed nations accounted for $16 trillion, while emerging markets added $2 trillion to the total. This surge has nearly doubled global government bond issuance since 2019, reflecting a growing reliance on borrowed money to sustain public spending.
The scale of debt accumulation is staggering. Over the past five years, governments have issued more debt than in the eight years before the 2020 pandemic. The rapid expansion is driven by historically high spending on social programs and defense, alongside new tax and spending policies. Elevated interest rates have further compounded the issue, making debt servicing more expensive.
The sustainability of this trajectory is in question. Governments are piling on obligations that will not be repaid in any conventional sense. The options are clear—either repudiation or inflationary dilution through central bank intervention. Printing money remains the most likely path, eroding the real value of debt while burdening economies with rising costs.
Bond markets are feeling the strain. Investor demand for long-term government debt is weakening, with auctions in the United States and Japan seeing poor reception. Yields are rising, signaling that lenders are demanding higher returns to compensate for mounting risks.
The consequences of unchecked debt expansion are becoming harder to ignore. As borrowing costs climb, governments will face difficult choices—cut spending, raise taxes, or continue inflating their way out. The global financial system is entering a precarious phase, where debt-driven policies may soon collide with economic reality.
Sources:
https://www.oecd.org/en/publications/global-debt-report-2024_91844ea2-en.html
https://cryptopotato.com/world-governments-are-issuing-more-debt-than-ever-will-bitcoin-benefit/