Acharya Prashant explains that the problem of debt is not limited to villages or developing countries but is a global issue driven by the desire for consumption. He points out that even in advanced economies like the United States, the economy is unstable due to massive housing and credit card debt. This happens because when desire overpowers the intellect, the capacity for discernment is lost, leading people to consume at any cost, even using loans for non-essential things like movie tickets or holidays. This creates an economic bubble of imaginary assets that eventually bursts when the debt cannot be repaid.