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The stock of global debt, the size of the banks, the risks of another financial crash are all bigger than in 2008

In election Britain this last week has been consumed with business and finance, mainly the hedge funds, lambasting Labour for being ‘anti-business’, as though massive indulgence in tax avoidance and continued insistence on de-regulation of finance were the conditional requirements of a successful global economy.   Actually they are the forerunners of the next financial collapse which may be sooner than many people anticipate.   Consider the evidence.   The world is awash with much more debt than before the epic financial crash of 2008-9.   In 2000 the global stock of debt outstanding (at constant 2013 exchange rates) was $87 trillions.   By the end of 2007, just before the crash it had risen to £142 trillions, and by 2014 to $199 trillions.   This represents a 40% increase in world debt in just 7 years, which is staggering both in terms of the size of the debt pile and the rate of its build-up.   It need hardly be said that this is extremely risky, especially when proposed reforms of the banking sector are very meagre and not set to come into effect till 2019.
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