I just want to forward this chart to the reader to keep the current set of circumstances in perspective. While the world is overindebted, inflation effectively wipes out chunks of the real debt burden on an ongoing basis. This system works as long as interest rates can remain subdued.
Although we do not yet have the answers to what the future brings, we know where to focus our analysis. The world can be burning down, but if real yields can remain low, the world will function.