You can file global debt levels under “Status Extreme”.

The Bureau of International Settlements (BIS) believes massive inflation in the near future is an “extreme scenario”, but it’s questionable to think spending will ever go down.

That’s because no matter who gets elected…

Debt levels are going higher.

Reuters reports:

BIS sends government debt warning before important elections

“Global government debt is already at record levels and elections ranging from the U.S. presidential vote in November, through recent polls in Mexico and South Africa, to votes in France and Britain in the coming week, all carry risks.

BIS General Manager Agustin Carstens said with interest rates not about to go back to ultra-low levels, and cost pressures from aging populations, climate change and rebuilding defence capabilities, economic stimulus plans and a general rise in protectionism could unsettle sensitive markets…

…Carstens said the BIS was not calling out any “one or two” governments but that the message was clear.

“They (governments) must cut short the rise in public debt and accept that interest rates may not return to the pre-pandemic ultra low levels,” he said. “We need a solid foundation to build upon”.

He described an “extreme” scenario where inflation races up again and central banks need to raise rates further. But that is not what the BIS expects.

It chimed with the view that rate cuts should not be rushed.

“A premature easing could reignite inflationary pressures and force a costly policy reversal,” the BIS report said.”

In the United States, it’s difficult to think if any of the candidates will drastically reduce spending at all.

Biden is already giving away American taxpayer money, and spending money to support the economy through impotent interventions like the “Inflation Act,” which was really an act to support green initiatives – to fight climate change by transitioning the American energy sector away from fossil fuels.

Trump is no different.

Remember 2020?

Trump printed $6 Trillion during his 2020 term – the most extreme flood of money into the American economy than ever.

But Trump has never been too afraid of debt.

CNN reports:

Donald Trump: ‘I’m the king of debt’

“I’m the king of debt. I love debt,” Trump told CNN’s Wolf Blitzer on Wednesday, seemingly trying to explain the comfort level he has with debt after a long business career that included four bankruptcy filings by his companies…

…Asked if the U.S. needs to pay its debt in full or if it could negotiate a partial repayment, Trump said: “I would borrow, knowing that if the economy crashed, you could make a deal.”

That was what he said during his 2016 election run…

And his words came true shortly after he took power in 2020.

Even as the BIS issues their warning, there is always a choice, but I am uncertain as to whether or not the bureaucrats at the Federal Reserve feel the same risk.

National debt wasn’t a focus of the last Presidential debate.

They spoke about inflation, yes…

But the whole “soft landing / hard landing” narrative…

It’s just another way to wave the magic wand to make the public believe like the national debt is simply all in the “management.”

Here’s how the Fed “managed” 2008(I set the play button at the good part):

That “management…”

or perhaps, incoming management is headed for Status Extreme…

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