[quote] Global debt shattering records: IIF
JANUARY 13, 2020
LONDON (Reuters) – Global debt is expected to climb to a new all-time high of more than $257 trillion in the coming months, the Institute of International Finance estimated on Monday, adding there was no sign of it retreating either.
The amount works out at around $32,500 for each of the 7.7 billion people on planet and more than 3.2 times the world’s annual economic output, but the staggering numbers don’t stop there.
Total debt across the household, government, financial and non-financial corporate sectors surged by some $9 trillion in the first three quarters of 2019 alone.
…local government is doing its part (to build up debt)
[quote] San Diego pension debt climbs past $3B for first time
The climb past $3 billion continues a long and steady series of increases for the pension debt, which was $1.2 billion in 2007.
The larger debt has spiked the city’s annual pension payments in recent years by about $100 million — going from $250 million a year to $350 million a year — and limiting how much the city can spend of its $1.5 billion annual budget on parks, libraries and other amenities.
The larger debt will force the city to make an annual pension payment this June of $365.6 million this year. That’s a $15 million increase over what the city paid last year and $11 million more than was previously projected by the city’s actuary.
The city’s pension board said Friday that while the size of the debt is a significant concern, nearly all of the sharp increases in recent years have been the result of the board taking a more realistic and responsible approach to estimating its debt.
…Board member George Kenney said it’s disappointing when people express shock at the size of the debt number without knowing the context.
“The unfunded liability is self-inflicted and I think people need to get that,” he said. “It’s discipline.”
