third top trend of 2022 year talking about global debt trap deepening. You've talked a lot of of the last 34 years about global debt with the trap now has deepened. If we just look at the data here in it is shocking according to your data spiked during the pandemic, Yeah, it spiked during the pandemic and has taken even more countries deeply into death. So you can see here the trained over the last two or three decades that, you know, when I first got into this business of investing, there was not a single country in the world which had a debt to GDP ratio of more than 300%. Today, there is nothing in and countries that Omar 1998 where there was zero car. But you wanna born in 1990 value? Well, yeah, minutes back to 9. 95 factor When I started investing by the At that point in time, there were no countries with a debt to GDP ratio of more than 300% to either a 25 from China, Japan, United States, a whole bunch of European countries. And that is a very big reason why it is so difficult for interest rates to go up there so dependent on debt, on servicing that debt that that India's debt is high, for If you compare them with similar economies, look at that. Vietnam is higher than us. But Egypt, Indonesia, Bangladesh much lowered debtors of percentage of GDP. See India's dead at the the centre of GDP is 175%. That's very high. These are total debt numbers includes government debt, all the private sector debt when which is corporate and households. So we put all the data together out here and I think that what they at one level, the fact that India's debt to GDP ratio is not above 300% is fine by generally, the lesser advanced countries tend to have lower debt to GDP ratios. And for a country with a per capita income of just under $3000 India's debt to GDP overall debt to GDP is quite high, largely because of the government debt, the government and the related sectors. Their their debt levels are relatively high for a country of this per capita income. So that's something which is like obviously concerning. The only good news there is that most of the debt is owned by domestic institutions. Very little of this is owned by foreigners. So when that happens, at least the currency tends to be more stable. And one of the things that comes out of this you say that interest rates really don't have much room to rise any further. I mean, if you look at global stocks and bond markets, how much they have grown compared them with GDP in 1980 divert just about the same as GDP. A little more now. They're four times GDP, just huge. Yes, this is the double barreled effect that higher interest rates can have, which is that if interest rates go up, not only does that really hurt you on the death side because there's so much date and becomes hardened hard to service that, but also the fact that the stock market's the bond markets around the world are so big, and so much of that is dependent on a very low interest rate environment. So this is something that 50 very sensitive about that of interest rates start to go up. Both the asset markets and the Death Service ability becomes a lot more difficult
