Germany’s outgoing finance minister says high levels of global debt could lead to a new financial crisis

Could we be heading into another global financial crisis? Germany’s outgoing Finance Minister, Wolfgang Schäuble, believes that “spiralling levels of global debt and liquidity present a major risk to the world economy.” He tells the Financial Times in an interview that prudent austerity measures are the best shield against economic fluctuations, especially now as more economists become aware of the fact that central banks are “fuelling bubbles” by pumping tns of USD into markets. He doesn’t seem to be alone in his thoughts, with warnings also being heard from the Bank for International Settlements and IMF chief Christine Lagarde, who said that “‘high levels of debt in many countries to rapid credit expansion in China, to excessive risk-taking in financial markets’” represent future obstacles to current economic development.