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Skybird
05-27-10, 10:23 AM
That is the financial debt of the 82 biggest economies this year, according to Global Insight who briefed German newspaper Die Welt on the matter four days ago. Next year, they say, it will reach 52,000,000,000,000. Nobody knows how this mountain ever could be reduced in size again. The yearly interests for it that need to be serviced, range at around 350 billion - every year.

In 2007, the new government's debt raise for these countries was 247 billion. This year, it will be around 3667 billion. In 2014, they expect a new government debt of around 1737 billion. In very deep trouble they see the United States, which all by itself mounts one third of the total debts burden of these 82 nations. Spyros Andreopoulos wrote in an analysis for Morgan Stanley that from a fiscal point of view the country's economic situation compares to that of a nation just having survived WWIII.

(German)
http://www.welt.de/die-welt/wirtschaft/article7750838/52-000-000-000-000-Dollar-Schulden.html

P.S. Just today, after a meeting with his German counterpart, Timothy Geithner has demanded Germany to make more debts. Well, maybe on the bridge of the Titanic the nautic counterpart to Geithner tried to raise the mood by calling "All full ahead!"

In this context, a very good analysis focussing on the European aspects of the crisis, which is in the most a crisis of our living styles and our unlimited sky-high expectations to the state, and why this modern crisis can no longer be adequately understood and adressed by the theory of anti-cyclic behavior according to Keynes ("spend in times of crisis, save in economically good times"):
(German) The Party Is Over http://www.welt.de/debatte/kommentare/article7792288/Die-westliche-Wohlstands-Party-ist-vorbei.html?print=yes#reqdrucken

P.S. Popular German media can sometimes produce very good essays, but with the exception of Der Spiegel - which has a quite substantial English edition - they are so very provincial in that they do not publish an international edition.

SteamWake
05-27-10, 10:34 AM
Geithner... yea... tough guy... :haha: :har: chicago thug :haha: :har:

Snestorm
05-27-10, 03:23 PM
Will it all implode sooner, or later?

Whether it will implode is no longer a question.

Skybird
05-27-10, 03:32 PM
They most likely will head for something like a controlled inflation - which comes at even higher long time costs that will cause even more disruptions in our societies.

Even at the best times of our economies, those debt levels we have accumulated would not have been possible to deal with. If you make debts even in boom times, then there is no hope for you, or better, for your children. We have consumed the future of our children. The life sentence we deserve - will be served by them and their children.

Snestorm
05-27-10, 06:13 PM
I think we are going to be dealing with this problem ourselves.
I also think it's going to get pretty ugly.
Socialism is about to collapse, and major changes are going to take place.

Bubblehead1980
05-28-10, 12:15 AM
I think we are going to be dealing with this problem ourselves.
I also think it's going to get pretty ugly.
Socialism is about to collapse, and major changes are going to take place.


I agree, maybe Europe will move away from socialism and the US can also once Dems and Obama are gone.