a discovery, i am excited to announce that we found at the door plug. this picture prompted a local teacher to reach out after he found the aircraft some missing part in his garden. and it's considered crucial to discovering why this happened in mid flight . we are here, we are the pressure i we really the return back to we have other passengers the drum on fold it on friday after alaska airlines flight to 1280 to suffer the blow off after taking golf from the city of portland, in oregon. an external door plug which blew off in a section of the fuselage at an altitude of 5000 meters. many passengers were scared, they would be sucked out of the cabin. we just heard like loud saying, and i looked at my left and there's just huge, like gaping or 1st i thought it was the emergency door, but there was no door there. it was just like a part of the wall that flew off on the planet carrying 177 passengers and crew

made a safety emergency landing back in portland. the aircraft had only been in service for a few months, and it's now been inspected. a copy to voice recording consider crucial for the investigation was found to have been over written and its data could not be retrieved. and inquiry found pilots had reported the warning alerts days before the incident. in these 3 previous slides, after the light illuminated they flip the switch to alt mode, which is normal, there's a backup. it was very benign. uh, nothing occurred very benign. the light illuminated they flipped it, they reported it, it was tested by maintenance, and then reset. alaska airlines has grounded its fleet of $65.00 mix, 9 aircraft as a precaution, a total of $171.00 jets of the same model, remain grounded, pending further safety inspections. axels,

i'm gonna reach out to 0. now real quick, transporting the 1st us lead a line during 5 decades is bought stuff. and despite some florida, 543, we have ignition the unemployed power permission is designed to make the 1st us landing on the moon since the final upon the mission. in 1972, the resulting space pumps is expected to touch down. on february the 25th. i'll be back in half an hour without. is that news up until like next? good time? just to save it. it's the it was never conceded doesn't happen. our country is out enough. we will not take it any more 3 years after protest, a storm to the capital. the new rates for the white house begins in iowa as republican candidates, once again bethel trump, for the nomination,

stay with alpha 0 to the us selection 2024. the next round, this is count to the goal is to now to 0. we do look at the world of business, and this week the world is drowning in a rec, what amount of debt un, who owns the crushing crisis, is most prevalent. and developing nations also this week, africa spends more money on servicing depth and on educate tional health care is need is demand a reform of the global financial system. gloves on the brink of defaults, the list of nations taking debt restructuring is growing. there's to plain delay

and really psych level data is hits a record $307.00 trillion dollars in 2023. and that includes the amount of money owed by corporations, governments and individuals right around the world. and it is equivalent to almost $40000.00 for every single person on the planet. multiple crises in recent years has less than the problem. pushing countries to the brain cannot simply means some of the poorest countries in the world servicing that that's instead of providing for that people some city point, city 1000000000 people almost off of humanity leaving concert is that spends model depth interest payments then on education for health us and yet because most of these and sustainable depths, i've gotten that i do the import of countries, they are not judge to pose a systemic risk to the global financial system. disease. i mean,

i see point city 1000000000 people is more than a systemic risk. it's a systemic failure. i'm trying to get there as well because with 19 percent that make the cost of living crisis, climate change, i need impacts of natural disasters have all contributed to the search in government borrowing. indeed, a report by the u and global crisis response group says the world wide public debt reach $92.00 trillion us dollars last year. that's more than a 5 fold increase since the year 2000 as the result borrowing as outpace global g d p growth, which tripled over the same time. and most of the public debt crisis is concentrated in developing countries. in the past decade, there's been an increase of the number of countries facing high levels of debt from 22 nations to 59. last year of these 52 nations soulmates, 40 percent of the developing world are in serious debt trouble. according to the

international monetary fund, countries like for lank gone. if you, if you unpack a stone, have already defaulted, or are likely to do, say, all countries mainly borrow from the international monetary fund. all the world bank. i may repay the money with interest and when they called, they risk being costs all from credit by international financial institutions or private investors at the burrow. again, they have to agree to a deal to restructure the debts and limit spending. and that's often led to social unrest. for example, in 2010 greece is i'm a bailout plan. that included will start the measures was met with massive practice . all right, let's take this on from london. joining me is greg swenson, a greg is the founding partner at the merchant bank of brick, my kind of break. welcome to counting the costs. so i pressed up, why has the weld reached this record amount of days? hey, nick, it's, there's a probably a bunch of contributing reasons, but i think the, the most obvious isn't just in the last few years where you've had 2 major issues.

one is you had really reckless funding during and after the pandemic, even after many recoveries had any, many economies had recovered and they continued, especially here in the us, in the us and u. k. that continued with really exorbitant spending. and that's created a so much excess that from deficit spending the 2nd issue, especially in the us. but even here in the u. k, you have some excessive spending on green energy projects which don't actually contribute to productivity in the country. all it does is add debt to the balance sheet without contributing or creating more products for people to spend. so it's to, to buy. so it's basically inflationary button all done with deficit spending. so those are the 2 major contributor contributors. and now the both developing and developed countries have to figure out how to pay it back. right. so obviously a big problem for pull developing nations,

but what kind of issues does it grateful originations? it's kind of that, well, i mean, 1st of all, the richer nations traditionally have been able to carry that, especially in the us because it's the reserve currency and you're able to carry, continue with deficit spending and carry account deficits. but the less lower and lower income for developing countries don't have that luxury. so i think it has to start with the, with the larger economies, it has to start with the us and u. k. and western europe. but, but it has to it ultimately a d o dependent somewhat on, on the developing kind of countries as well. so it's got to be both, but it's got to be lead with the larger economies. we're kind of of you inside the general intended gutierrez, talking about the risk of unsustainable debt. so what kind of risk of that as well, yeah, the most obvious is, is austerity if they can't service the debt or the i am a for world bank forces. these developing countries to, to cut spending,

and these are countries where the people are really dependent on food subsidies or even to direct food deliveries. so if you look at the countries like there's 4 african for an age of the larger ones in africa and nigeria and kenya, and then in asia, it's the philippines and pakistan high population countries were over 40 percent of income is spent on food. so if there is a sturdy, if there is inflation, which is basically a tax on these consumers, and they're already spending a considerable amount of their, their income on food that's going to lead to social and rest we'd, we saw that 10 years ago, the iron spring in north africa, we could very well see it again in these countries that are spent where the consumers, the people are spending, consider considerable amounts of their income on food. so he's got a point, i think the developing countries, you know, or, or where the, the risk really is. i'm social unrest due to us dirty on debt service. it won't

happen in the larger economies. but it's really a shame because the, you know, so much of the borrowing has happened in the last few years without any real productive results from that borrowing. and so it's, it's a shame that, that many people are going to suffer in age and effort. subsaharan africa, right. and so we have, does it extraordinary crisis, but it, is it even manageable? i think it is. i think ultimately it is. you know, you're going to have some workouts. you're going to have some restructuring restructuring. i think what really has to happen again, beginning with the bigger economies, the larger economies in the west is cutting spending and in the larger economies can do that. some of the developing economies have trouble cutting spending because it's, it's, it's food and health care and education for their economies that they're much more dependent on government spending. but last 30 in the west is different than austerity in the global south. so cut spending in the west. the 2nd is to liberate

the supply side. then that's, there's been such hostility to the private sector. so which is in effect inflationary and ultimately creates more deficit spending and more the overall debt level. so you know that the supply side has to be liberated. so there's, there's, we have lower jet, we have lower rates, more products are produced. that brings down inflation. it also creates economic growth, which therefore, creates tax receipts or higher tax receipts. so the best way to, to pay back debt is deliberate, the private sector in, in both developing and developed economies. right. a given debt interest payments that are all from bigger than that overall spending on say helpful education. yeah . how feasible is it for, for lenders to post or even just to write it off? i think there's going to have to be some right off suite. we saw that in sub saharan africa and in the last few years, i think there's going to have to be some restructuring as you see it, even in eastern europe. and in small economies like montenegro,

where you have large borrowings from the chinese of those, those debt service or interest payment holidays are ending. it's going to make it very difficult for smaller economy. so there has to be workouts, that's for sure. but i think we also have to consider that, you know, and again, in the larger convers cut back on spending, focus on creating economic growth that will create more tax receipts. there's a lot of talk about a reform of the global financial system. do you think that could happen? i think ultimately there has to be some reforms around the edges. i don't think there could be some major restructuring of the system. you know, you're, so you'll probably see less dependency on the us dollar with, you know, you with oil trading and different currencies. you might see a shift to the global self as, as your population grows in sub saharan africa and asia, and the middle east, north africa with very low popular asian, gross and in the way in western europe, as well as in the united states. so, you know, there, there might be some shift based on movements of a people and

a different population, different demographics. i think you also have to look at china and they have a major property problem. so this, the sub saharan african latin america are going to be less dependent and have to be less dependent on china because they just don't have the money to, to continue with the belt and road initiative. due to the fact that they've got debt problems at home. so i think that's something we all have to think about. right. oh, interesting stuff, greg. i appreciate that greg swenson them from much like netflix to be here. well, of the $52.00 low and middle income countries, dealing with unsustainable debt, $23.00 or in africa via became the 1st african country to default on itself in debt . and that was during the code 19 pandemic in 2020 china is a significant credits of the countries infrastructure projects. loans with high interest rates have restricted the government's ability to invest in social programs and infrastructure developments. but zambia has become a test case for potential defaults, as of the months of talks, as lenders,

including china and the paris club agreed to restructure $6300000000.00 of them. these loans in june, southern african country will pay about $750000000.00 in the next decade. that is, instead of owned by $6000000000.00 that was due before the debt restructuring, the nation is being negotiating. some of the deals with private credits is a new and report says, on average, african nations borrow at a cost $4.00 times higher than that for the united states. and 8 times higher than that for the wealthiest european economies. uh, from governance capital that chrome join. now by daniel edwards, i, i'm him, he's the lead consultants that didn't any banks management and the chief economist that the policy initiative for economic development in africa. daniel, welcome. so 1st up why all african countries trapped in this vicious cycle lived it

very much in the uh, we try in the way it's been doing uh, maybe a historic or a disease and he's by somebody else was good to be a as the queues leasing the bodies either on to as the so as i move or i cannot make it, you know, me, the shopping, the resources you sent it to the buyer. so you bought the 2nd without your saw more of a to use the one that, you know, i forgot the really limited policy to see any to buy products. so we will be at the resort to the run of a lot of tv. and the reason is we do not have any buy dental

uh, with the savings is to be able to uh, i said on the left front of the people. the color says the dental cv, the doesn't need a full copy, started guessing to the social or the midship, what they thought is wrong or what, what doesn't help is a high level, the massive levels of interest to me. what do we say? it was the 4 times higher than that for the united states at 8 times high. the not for the wealth is european economies interest rates. how is that ever come to be? yes, it is quite difficult to get if you do not love the one role that you be, the movie lies select plus the phones and when you needed

a copy, the market is a blue moon, which is due by the very end of the model. the guy comes all to the now this is within the going for the money. and the discussion of mrs. low, the bottom was the forgot to leave you. the money comes into the oh, the, the rest of the way to move some of the function, the resolution you don't need is and there is a wage. it's become the. so while you need to money at the laboratory, you might have to decide mondays and then the guy which is a better job. and that is what is the reflection for the so the nations have to service it these massive rates of,

of interest. how does that impacts their ability to develop sub leasing the development and the levels is why the highlander underneath the law, the rest of the effect on the living, the citizens, the use of this uh for your patients, the vision in the who into our way. sure. the people from moment to all minimize the use of use. there's also that high point in the last uh you gotta say a model and the more deliberate is all the practice that got to be able to get that job and then the rest. and then that's what you need as far as it is. so these are the regional

center. hi, i'm talking about the most up because i will tell you briefly what, what do you make of accusations against china that pushing african nations with that truck? yes, i do now is sort of simple realize the very best our results deposition. because with the law, the icon on the need are results immediately. well, industrialization. so the model is less comfortable. i forgot, and it looks like i saw in, in the show that we, we, we, we all got resolved. all the lola trying to get the right links to where people are refills the recall we're looking for. that's really as if we get the same. most of the guys on the new way we know how to simulate model by the way,

and then you get the whole lot of tv is trying to, i guess, you know, really gives you the model. as you said, a lot of people are not as much as john uh of this and they do not too. sure. okay. so that they have different results on the computer i later when would you tell me the continued the is the deliberate friday just upfront. uh, i need to, i need to continue to the deliberate one is the, you would be a slow de la. there's lots of those lots that are. all right, daniel, i appreciate that. thanks so much for joining us here on kindly because it's daniel, i'm gonna tell you i'm thank you. of the now developing countries. a chinese land is more than a trillion dollars. that's according to research lab. 8 data and overdue 11 repayments. the soaring china has a much is the largest global bi lateral credit to in the past decade. it is in fact

catching up with the i m f and the world bank and is exceeding other government says the official lender to the developing world. beijing has replace washington and bailing out low and middle income countries, or china has led massive sums to several countries across asia, africa, and europe is part of the global infrastructure project, the belt and road initiative, the many nations of struggling to rip hay and face economic instability and are on the verge of collapse. the us blames beijing for pushing them to the bring. china put the responsibility on us lead financial institutions. we're trying to has been reluctant to cancel large liabilities. owed by countries struggling to make ends meet. a data says that 80 percent of aging is lending portfolios in the developing world is now supporting nations in debt distress. a china is also dealing with trillions of dollars owed by its own local governments, their financial affiliates,

and real estate developers. well, joining me now in australia as i'm pleased to say here at the hearts it shows a youth is a visiting fellow at the london school of economics and a senior practitioner fellow with the center at harvard kennedy school joining welcome at. so 1st off, what do you make of these accusations against china or chinese loans to developing countries that truck oh, those statistics who quoted make are compelling. however, i would say it is a bit misleading to call it a that trap for what china has gone to the developing world. china alone, so 20 percent of the debt to african. so solving nations, the other 80 percent are low in spite of multilateral institutions. in national financial entities, countries such as the united states, some you countries, turkey in their japan, etc. so if you call the 20 percent the china loan, so africa, it that trap, then i wonder, what do you make off the other 80 percent that are collectively loans by all the

other entities to africa. china is long the over $2000000.00 situations to the developing world. many of them in the far reaching regions of the world and many of them are, are run by a liberal and the non democratic regina. and so overnight and political systems could change. we saw a wave of quotes in west africa, we saw political system change in no, been as well. so none of these is an assurance to china in terms of the ownership guarantee or a loan guarantee, in terms of, you know, protecting china's overseas interest. so use of major strategic vulnerability for china, but when it comes to the debt relief, effort estimation says 2021. china, relieved to 23. i frequent country state and in 2022. china has successfully helped gonna restructure. he's that good to be turning those approaches works which on china, or is it the forefront to try to do something about it? you recognize? it's not down to the west of lending institutions. it's a black,

a chinese trying to do, or would it con and i should say that it is not out out of altruism either because it is indeed and try this interest. that'd be so over a $140000000000.00 of debt to china. loans to africa does not go into default. however, i don't think we should use a plain game here because the reality is that africa in particular has been shot out of the global modernity. by not being offered sufficient to capital funding for the past 4 or 5 centuries. this is the moment where the west and china should join hands in providing massive capital infrastructure building to the roles and these, the developed nations. no country should be shot out of the world with modernity and economic prosperity for a matter, for lack of financing. of course, china itself has its own law, so that program business. so how does it benefit from lending money to other nations at the scale? so if you look at the folder wrote a new should, if this is the times,

here's the over the past decade, the china has really been escalating. it's a both the still mastic or capabilities as well it's, it's so expansion off it's investment capacity globally. and so i think the investment within is useful method capacity and these overseas investment capability are coordinated. so at the beginning of the bought a road initiative for china has been building a lot of fiscal infrastructure. we always rhodes ports, etc. and of course, those are important because without the fiscal infrastructure, we cannot start to talk about trade jobs, growth, or economic opportunities. and next, the china started to build digital infrastructure from somewhere in cable networks to telecomm infrastructure base stations, cloud success. so those are conducive to the rise of the additional economy in these developing countries and then optical they, we started to see china moving massively into green energy building social enterprises, public health care building, etc. so

a lot of the investments in the public goods area is going to help the developing countries in now moving towards environmental sustainability and economic sustained . and then as far as the, obviously these lines are concerned, isn't china now shifting from shifting to providing emergency rescue lights? to countries as opposed to the infrastructure projects you're talking about. absolutely. i think that really goes with a natural development pattern. so from the sending global power, if you were to look at the united kingdom in the 19th century or the united states in the 20th century, all of these are rising pars. they started by exporting labor. and then these countries became the export of capital. subsequently, the export of technology and subsequently the ex border of global rules and norms and values that needs to choose. sions what we saw in the expenses to break summit back in august. that is the start of china as efforts for the next, the phase of building multilateral institutions to finance the developing world for

digit baltimore. do you think the, the debt crisis as a whole base in, shall enter in outside china or is manageable or is it a ticking time bomb? uh, uh, these are very complicated questions. uh, domestically speaking for china. the that issue is most of huge in the corporate sector and in the municipal government sector. so what the government is trying to do is to get a to do stringent the due diligence, the order to build a firewall, to prevent the corporate financial stress from b, spelled over to the financial sector in order to prevent a systemic financial crisis. but try to does have a lot of numbers, both in terms of money tree and fiscal policies are in place in the event of a severe economic calamity. and if we were to reflect on the 07, the way to us centered to global financial crisis. the u. s. has promised the 4 runs of 2. he's in order to provide

a floor of liquidity to the financial system. china hasn't even begun to talk about your needs yet. so i think there are still a lot of policy room available to address some severe cataclysmic events in china. we'll have to leave with the show. you great to have you in the studio head still by was thanks very much the thank you. thank you. well that's all show for this week. i did get in touch with us on that. excuse me, 9 is twitter, of course at mit, clock out jobs, and please do use the hash tag a c t c. when you do or just drops an e mail to the cost at out, is there a dot net is our address, but it won't be online at out 0 dot com slash ccc, and that will take me straight to our page, which has individual reports link. so when tot episodes for you to catch up on that is it for this initiative? kind of the cost on the clock, the whole team here and uh huh. thanks for joining us to use on out 0 is coming up . the

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