The global debt bubbles – what vaccine is there?

What you need to know:

On aggregate basis, the debt hit an all-time record of over $272 trillion by end Q3 2020. The expectation, by end 2020 is, for the debt to hit $277 trillion, which is 365 percent of GDP.

Whilst the world is breathing sigh of relief since the good news rolled in on success of Covid-19 trials and eventual rollout of vaccinations globally, the hope, and it remains a hope at this juncture, is that the biggest vaccination in human history will eventually relieve us from a virus that led to the greatest recession the world has experienced. While we are celebrating the C-19 success, the big question on the other side of the coin is on the growing global debt–what is the vaccination if at all we have found one? As the pandemic ravaged economies, leading to lower revenues, increased investment in public health and relief measures, governments had to act. The monetary policy reaction has been unprecedented in different countries, many have cut policy rates and introduced quantitative easing (QE) programmes weighing on currency (depreciation) and a sizable retrenchment in portfolio inflows.