Debt and the Future

A predominant characteristic of most of the countries is indebtedness equivalent to one year's GDP.

And worse, growing year after year!

Normally, this fact would be considered an aberration, placing countries in a situation of extreme vulnerability.

If the interest rate is high, debt repayment becomes unfeasible. If it is low, it devalues ​​the local currency, harming the majority of the population.

Of course, the well-known solution would be prudence in spending (public budget). But this is not in the "script," not by a long shot!

In the energy sector, the trend is a significant increase in costs.

The reason is simple: investing in expanding the value chain of the electricity sector means being exposed  to higher risks. The "way out" is to allocate a good additional interest rate to appropriate the amortization of investments ("capex"). Welcome to the new scenario!

1