Debt Levels

High Debt Levels:

High levels of debt caused by undisciplined government expenditures and financial engineering by high profile Wall St. firms has lead many countries down an unstable financial future. An unforgiving populace begins to demand entitlements of the past even as governments are required to cut spending to balance budgets.

Enablers:

1. Tightening of capital markets

2. Unemployment benefits are being extended in developed economies

3. Germany adhereing to austerity measures

Inhibitors:

1. Investment from China keeping governments from making difficult budget decisions

2. Slight recovery in markets beginning to thaw public sentiment towards economy

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