As global debt levels climb to historic highs, governments are quietly preparing new ways to manage the burden, strategies that could increasingly draw on private wealth without directly taxing it, a new UBS report reveals.<\/p>\n
Governments across the world are increasingly likely to tap private sector wealth to manage rising debt levels, primarily through indirect measures such as financial repression and selective taxation, according to a report by UBS.<\/p>\n
The report underlined that global debt remains significantly elevated by historical standards, with developed economies expected to see debt exceed 113 per cent of GDP in the coming years. However, it stressed that the real issue is not the size of debt, but the ability to sustain it.<\/p>\n
\u201cGovernment debt is almost never repaid,\u201d the report said, adding, \u201cit is the ability to finance debt that matters.\u201d<\/p>\n
UBS highlighted that private wealth globally is at record highs and far exceeds government liabilities, creating a substantial buffer that policymakers may increasingly rely upon.<\/p>\n
\u201cThe government-debt-to-personal-wealth ratio is much lower…government debt is dwarfed by the resources available to fund it,\u201d the report stated.<\/p>\n
The report also pointed to a massive intergenerational wealth transfer underway, noting that \u201cover USD 80 trillion of personal wealth\u201d is expected to change hands in the next two decades. It added that “indebted governments will not ignore this\u201d.<\/p>\n","protected":false},"excerpt":{"rendered":"As global debt levels climb to historic highs, governments are quietly preparing new ways to manage the burden,…\n","protected":false},"author":2,"featured_media":36987,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[129],"tags":[21766,21762,21759,15773,21750,21765,21760,21761,21753,21767,17609,21764,21751,223,12341,21763],"class_list":{"0":"post-36986","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-ubs","8":"tag-borrowing-costs","9":"tag-capital-gains-tax","10":"tag-debt-crisis","11":"tag-economic-policy","12":"tag-financial-repression","13":"tag-gdp-ratio","14":"tag-global-debt","15":"tag-government-strategy","16":"tag-indirect-measures","17":"tag-inheritance-tax","18":"tag-private-wealth","19":"tag-public-debt","20":"tag-selective-taxation","21":"tag-ubs","22":"tag-ubs-report","23":"tag-wealth-transfer"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@ch\/116277777872051084","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/36986","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/comments?post=36986"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/36986\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/media\/36987"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/media?parent=36986"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/categories?post=36986"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/tags?post=36986"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}