High Debt Levels Spark Fears of Another Financial Crisis

Record high global debt, especially in developed economies like the U.S., Italy, and Britain, is causing worries about another financial crisis.

Investors are demanding higher returns on long-term bonds due to debt concerns, while central banks removing support adds uncertainty.

Budget credibility issues and lack of fiscal discipline, like in the U.S. and Britain, raise the risk of policy missteps sparking market routs.

Low economic growth keeps debt high and limits governments' ability to spend, while rising interest costs add pressure.

Economists recommend efficient spending, reforms, higher taxes, and credible fiscal plans to avoid a crisis in the next decade.