Just saw and heard Obama on tv say the UK and USA economy are both doing OK so he/we must be doing something right. Then I looked at the USA Debt Clock and I see the clock is going so fast I cannot read the numbers.

http://r.search.yahoo.com/_ylt=AwrSbmII ... zBBKOVGHo-

In total debt, the USA is tops. But taken as a percentage of GDP, many countries are currently worse off.

Global Finance Magazine wrote:Public debt in Greece has almost doubled, from 115.2% of GDP in 2007 to a projected 200% of GDP in 2014. Similarly, Portugal’s debt is going from 75% of GDP in 2007 to an estimated 134.6% in 2014 and Spain’s from 42% six years ago to 105% next year. In Italy, indebtedness has not risen as fast but it is on a clear uphill slope, going from 112.4% in 2007 to 131.4% in 2014.

Outside of the euro zone, Japan is a country with a long history of sky-high indebtedness. Debt as a percent of GDP broke through the 100% mark in 1997 and has risen steadily since then. It surpassed 200% in 2011 and is headed toward 230% of GDP in 2014.

According to the IMF, outside of the OECD, a number of countries face heavy debt burden in the near future, such as Buthan (an estimated 100% of GDP in 2014,) Eritrea (123%,) Grenada (112%,) Jamaica (139%,) Lebanon (136%,) Maldives (122%,) Singapore (101%,) Saint Kitts and Nevis (133%,) Sudan (115%,) and the United States (114%.)

https://www.gfmag.com/global-data/econo ... entage-gdp

Nothing for Obama or any American brag about. I was a bit surprised to see Singapore up there.

I don't know what to make of all those figures and information. When I look at my debt as a percentage of my GDP, it is 0.00 %, and even though I have assets [ one healthy kidney ] no-one will loan me money. Looks like I may have do like the USA and Cambodia do , and go talk to the Chinese.

Duncan wrote:I don't know what to make of all those figures and information. When I look at my debt as a percentage of my GDP, it is 0.00 %, and even though I have assets [ one healthy kidney ] no-one will loan me money. Looks like I may have do like the USA and Cambodia do , and go talk to the Chinese.

It's because you're not a sovereign entity with debts in the currency which you create, backed by your ability to create production.

Private debt and sovereign debt are VERY different things and trying to think of one in terms of the other will just lead you down the path of false understanding.

OrangeDragon wrote:

Duncan wrote:I don't know what to make of all those figures and information. When I look at my debt as a percentage of my GDP, it is 0.00 %, and even though I have assets [ one healthy kidney ] no-one will loan me money. Looks like I may have do like the USA and Cambodia do , and go talk to the Chinese.

It's because you're not a sovereign entity with debts in the currency which you create,


backed by your ability to create production.



Private debt and sovereign debt are VERY different things and trying to think of one in terms of the other will just lead you down the path of false understanding.

OK, I can understand that bit.

Pull the cord already. I dont want it happening later in life.

OrangeDragon wrote:

Duncan wrote:I don't know what to make of all those figures and information. When I look at my debt as a percentage of my GDP, it is 0.00 %, and even though I have assets [ one healthy kidney ] no-one will loan me money. Looks like I may have do like the USA and Cambodia do , and go talk to the Chinese.

It's because you're not a sovereign entity with debts in the currency which you create, backed by your ability to create production.

Private debt and sovereign debt are VERY different things and trying to think of one in terms of the other will just lead you down the path of false understanding.

Very good points OD. I will focus on the U.S rather than U.K. economy as I know it better, but both are doing well, As OD points out a sovereign country is not like a person who has to pay back their debt with earnings. The U.S.government never has to pay back the debt, only service it. In fact it would be very bad if it ever did pay it off. Now it is the proportion of debt to total GDP which is important, and that has been decreasing. In addition the cost of servicing the debt is falling. Why would it be bad to pay it off? Now think about it, if there were no federal debt, there would be no treasury bills. And where would banks, companies, and Social Security park and invest their money? This would actually be a huge problem and actually was a worry during the Clinton Administration, where the debt was being paid down too fast. Remember the government is not you. You have to pay your debt, the government just has to service it. And it has the power to tax and requires you to pay that tax in U.S. dollars. As the GDP grows, tax revenues grow, and debt service costs decrease. The U.S. economy is growing because it has low inflation, high productivity, innovation, lots of capital, and an educated population, infrastructure and stable government. All this compared to the rest of the world. Sure there can be improvements, but that is how it stands now. And also there are times when the government must increase the debt, increase its spending, to counteract business contractions when their spending decreases. This temporarily increases the debt to limit the depth of the recession. Then the debt to GDP ratio falls again as the economy improves. This is what we saw for example from 2008 until now. Forget the federal debt clock it is less than meaningless.

Doing well? what fucking fantasy world are you living in?

The economy is NOT growing...wall street is growing. my portfolio is growing. My wage is fucked in the dirt and my taxes are sky rocketing BY THE SECOND. Nobody can afford homes THANKS to the low inflation so every millennial who is making under 60k a year is stuck in mom and dads basement cause of ridiculous rent prices. On Top no one getting married so no joint income.

The situation is FUBAR. Its a goddamn house of cards and wait till the boomers really start packing it in.

The Add Jay wrote:Doing well? what fucking fantasy world are you living in?

The economy is NOT growing...wall street is growing. my portfolio is growing. My wage is fucked in the dirt and my taxes are sky rocketing BY THE SECOND. Nobody can afford homes THANKS to the low inflation so every millennial who is making under 60k a year is stuck in mom and dads basement cause of ridiculous rent prices. On Top no one getting married so no joint income.

The situation is FUBAR. Its a goddamn house of cards and wait till the boomers really start packing it in.

Wow. I can't see any logic in anything you wrote there. By all measures, the US economy is growing. 3% growth of an 18 trillion dollar GDP isn't too shabby, either.

Taxes are not going up "by the second". Recent federal tax hikes have been aimed at those making over $250k per year ($400k for married couples).

You honestly think junior has to live with his parents unless he/she is earning over $60k per year? That's nonsense. You can rent a decent apartment at $1200 per month within just about every commute distance from any city.

People can't afford homes due to low inflation? I don't know what that means. They would be better able to afford a home with rampant asset inflation, as experienced from 1998 to 2007? I bought my place for one third of what it sold for just 5 years prior. Deflation in the housing market made homes affordable to millions who couldn't even dream of home ownership in 2007. Home prices are still depressed, although making nice gains since 2012.