Is the global debt worries an indicator of another crisis?

Subject: Economy

Section: External Sector

Key Points:

Record debts, high interest rates, the costs of climate change, health and pension spending as populations age and fractious politics are stoking fears of a financial market crisis in big developed economies.

Which countries are most concerned?

The United States, where it almost came to a default because of high debt.
Italy and Britain are of most concern owing to high debt.
Italy’s 2.4 trillion-euro debt pile is the focus in Europe, where the IMF has said high debt leaves governments vulnerable to crisis.

What are other factors that increase concern?

Most of the developed countries have an ageing population. This means a less active work force and the added burden of pensions and healthcare.
Growth too is slow and thus makes debts at current levels unsustainable. In addition as central banks increase interest rates the surging interest payments with high rates add to the pressure.
There is an absence of political consensus in these countries neither for austerity measures nor for increased taxes.
The resolution of this crisis is for taxes to be raised, particularly in the United States and Britain, along with some spending cuts.