Global debt is currently about 50% higher than GFC levels.Global...

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    Global debt is currently about 50% higher than GFC levels.Global debt is at a record 230% of GDP.

    Risky corporate debt, especially in the form of leveraged loans, has seen major economies reach historically extreme debt levels – particularly in China where corporate debt has rapidly increased over the last decade.

    History shows that credit booms, like the world has experienced over the last decade, often end in busts of seismic proportions. Oxford Economics research suggests that the countries at the highest risk of debt crises are Hong Kong, China, France, Canada, and Chile.

    China's debt problem is already at a critical stage and a failure to address it could have major implications for the world economy – especially Australia.

    Slowing global GDP, exacerbated by impending economic recessions in major economies, would lead to an historic crisis of credit contraction and debt deflation.
 
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