börje on Nostr: There is an argument to be made that the fear of an over-leveraged world economy is ...

There is an argument to be made that the fear of an over-leveraged world economy is overrated. While it is indeed true that the global debt-to-gdp ratio is higher than ever - it doesn’t mean that it is an entirely bad thing. One could argue that debt is just another word for trust. After all - to issue debt, you have to trust your counterparty. In other words - we are at record debt levels but also record trust levels. In a way, it is a natural thing to see with the rise of the internet. There is more information available than ever before, thus we can make more well-informed decisions on important mattters. It also leads to a situation where we can afford to trust others, since we generally speaking have more knowledge available. Is it a bad thing that we have more trust among individuals and businesses than ever before?