CHART OF THE DAY: Where Every Major Country Is In The Global Debt Cycle

button more charts
button chart prev
button chart next

Societe Generale has mapped out the world by each country’s place in the global debt cycle.

The cycle starts with countries paying down debt, followed by growth with little debt, then a rapid increase in leverage, closing with the bubble bursting.

Every major developed country fits on a part of the chart.

Right now, the U.S. is starting over, paying down debt and a long way from the growth portions of the cycle. At the opposite end of the spectrum are Brazil and China, ramping up growth and increasing debt.

Might be a good graph to follow if you’re someone who plays the markets by country.

chart of the day, world debt cycle, september 2010

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.