Moral Outrage
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Which Country Debt is nearly 1000% of its GDP?

Which country debt is nearly 1000% of its GDP?

It’s the UK, as per this excellent chart from Morgan Stanley.

A few notes here:
• This chart is looking at all kinds of debt, not just sovereign debt. The UK’s staggering debt-to-GDP ratio is largely due to the size of its financial sector.

• All financial sector debt is, to some extent, potentially government debt, since all governments end up having to rescue their financial sectors in the event of a crisis. That’s what brought down Iceland and Ireland.

• By no measure does the US look remarkable debt-wise — even household debt/GDP doesn’t look that bad. For that matter, Europe doesn’t look that bad either. Their problem is not debt, but fiscal/monetary structure.

[Excerpt Business Insider]


One Response to “Which Country Debt is nearly 1000% of its GDP?”

  1. Reblogged this on nigh.

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