Quote:
Originally Posted by Betonov
Someone please explain to me how can one country have more debt than the GDP of the entire world. Economic wise, not political
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By making living on tic a way of life and delaying the start for paying back of debts to the next administration.
Or in other words: by biting off more than one can swallow.
Problem is the shortsightedness of people, which in our species seems to be by genetic design.
The US is not alone in the debt-making business, though. It just is the biggest, most dependent and effectinbg others as well offender. In %, Britain and Japan are much worse off.
Germany was on the way to a
truly balanced fiscal budget some years ago, but then came the global crisis and next the bailing out of European mismasnagement that turned the currency union into an effective transfer union. Calculations done by government-indepedent fiscal analysist and economic experts show that the Merkel government in this and the past two years have set the course for the future fiscal ruin of Germany by still sticking with bailouts for the Euro crisis -
no matter the cost.
The Socialists would not do it even better, but would sink even more money and make even more debts for social issues to buy voters' sympathy - ahte cost of destroying the future. And that is true for America as well. It makes no sense to now bash only Obama, when you see that since WWII governments of both parties set sails for always increasing debts. That starts with the stupidicty of American stimulaus policy (what I cut short by calling it "living on tic"), and ends with the unaffordably high military budgets. The simple truth is that by its own economic and fiscal potency the US in no way can finance the military giant sytructure it is running. It depends on others pumping money into America, and by that indirectly into the US military as well.
Needless to say that such madness cannot work for always. The longer it has lasted, the tougher will be the crash, the harder will be the wake-up call. And many ordinary people will be left at the sideline. It already has started.
America is stupid, and Europe is stupid. Both are stupid in different ways and interpretations of this effort of being stupid, but stupid they are both nevertheless.