Add Politics and Debt, get a very volatile mix

In December 2015, Cyceon wrote that you should get ready because politics is gonna rock the economy. 10 months later, the “hold-up” of politics over the economy did succeed. In addition to the increasing unpredictability of the voters, elected politicians have actually helped such a situation to emerge.

While two decades ago, it was the economy, stupid! now political issues have been willingly put on top of our collective agenda. Perhaps because of economic issues that they don’t really know how to solve – notably on the debt front – politicians have somehow used politics as a diversion.

The subsequent issue that they didn’t expect is that this diversion is increasingly becoming counterproductive for their own political future. Illegal immigration or terrorism for instance have become the number 1 concern for most of the Western public opinion, and the more politicians used such topics as a means for political gains, the more the people have questioned their ability to solve them.

Claiming that there’s a “war on terror” may mobilize the people but it also underlines what politicians got or did wrong. In the meantime, the economy has almost become a secondary topic although challenges remain daunting. The debt issue – the world’s debt is currently at USD 152,000 billion, that is twice the global economy according to the IMF – will instantly become everyone’s most immediate concern once debt financing interest rates rise again.

Not only many States could have a hard time finding solutions on how to serve the huge debt but it could trigger even more serious complications on the political stage.