From a danish newspaper(Informationen) today
The Danish economist Jorgen Moller Ørstrøm sees no sign of U.S. recognition that the current model of society does not correspond to society's ability and willingness. Therefore it ends up wrong - whether the debt ceiling is raised again
He cont.
"If you talk to Americans about debt and deficit of public finances, it is as if it does not exist. They understand the words, but not what it means to them. Therefore, the problem becomes bigger and bigger ..."
he and many other economical experts, expect USA to go bankruptcy in the next 10-15 years.
Have copied two part of the whole article that I found interesting
'America's problem is that it runs with a social model that the American will not pay for, "says Jørgen Ørstrøm Moller, a professor at Singapore Management University and Copenhagen Business School
His skepticism about the U.S. decision-makers' ability to bring order to the household accounts are based both on current events in Congress and on the historical experience.
"For me, both the analysis and the solution is simple. Since 1961, the United States has only five times had a surplus in the state budget. Since 1981 the U.S. has only twice had a surplus on the balance of payments.
If one simplifies a little bit, it means that the political majority in the United States want to maintain a social model that costs about 25 per cent. of national income, but will not pay more than 20 per cent. for it. This has been done in, I do not know how many years, and it has so far been able to borrow to.
Now you approach, however, a critical point for external public debt in relation to the U.S. GDP, "said Jorgen Moller Ørstrøm
Is this correct?
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