An explosion of public debt in the world

Abstract

The article is devoted to the process of the rapid acceleration of the growth of debt in the world. The process may now be considered as a trend whose effects may be very dangerous in the future. In the scale of the world the cumulated debt reaches the world GDP, and the debt is currently concentrated mainly in the industrialized countries. The article discusses reports issued by the International Monetary Fund and the Bank International of Settlement that are devoted to this problem. An additional problem that increases the unfavorable effects of the debt on the economic balance are the effects produced by pension privileges resulting from unfavorable demographic trends.