To manage this looming crisis, three potential scenarios are being considered: defaulting on debts, transferring payments, or implementing austerity measures.

China's approach to managing its real estate bubble illustrates how shifting debt can postpone economic reckoning, but emphasizes that structural reforms are essential for long-term effectiveness.

The global debt crisis has escalated, with total sovereign and corporate debt surpassing $100 trillion, raising alarms among economists.

A staggering 40% of this debt is set to mature by 2027, intensifying concerns about future economic stability.

The potential for widespread defaults could trigger a global recession, resulting in severe economic losses and social instability, including the risk of revolutions and wars.

Transferring debt costs to specific sectors, such as through tax increases, could adversely affect consumption and economic activity, particularly for the middle and working classes.

Despite the potential role of technology, including robotics and AI, skepticism remains regarding their ability to resolve the debt crisis without necessary structural reforms to the economy.

While austerity measures might offer a managed approach, they typically involve reduced consumption, higher taxes, and diminished social services, resembling a controlled decline rather than an abrupt crash.