US Debt - Part 47
Discussion
Fittster said:
Defcon5 said:
If all these countries are borrowing such huge amounts, who lends them it?
You print money to buy your own debt. What could possibly go wrong?I read that the US deficit is $4 *trillion per year and total debt is $14 *trillion. Where they debt free before the credit crunch then?
- EDIT not billions, trillions sorry........
Fittster said:
Defcon5 said:
If all these countries are borrowing such huge amounts, who lends them it?
You print money to buy your own debt. What could possibly go wrong?What can go wrong is currency debasement... Weimar, Zimbabwe, Argentina et al.
rhinochopig said:
Not a problem as God loves America and God has a AAA rating. Out of interest where are we in that league table?
IIRC, UK is about 40% of GDP...http://en.wikipedia.org/wiki/Economy_of_the_United...
ErnestM said:
rhinochopig said:
Not a problem as God loves America and God has a AAA rating. Out of interest where are we in that league table?
IIRC, UK is about 40% of GDP...http://en.wikipedia.org/wiki/Economy_of_the_United...
We're all going to be sold into slavery.
rhinochopig said:
Not a problem as God loves America and God has a AAA rating. Out of interest where are we in that league table?
At the moment.... 
http://www.marketwatch.com/story/gold-surges-after...
And here, in the bastion of financial news which is The Sun: http://www.thesun.co.uk/sol/homepage/news/money/35...
Bandit said:
And here, in the bastion of financial news which is The Sun: http://www.thesun.co.uk/sol/homepage/news/money/35...
"I fink the US economy is in for a rough ride, but the Republicans will see us through" says Liberty, 125 from New YorkGargamel said:
The US's total financing requirement for 2011 is 28.8% of GDP, according to the IMF ... just a tad ahead of Greece (24.0%), Italy (22.8%), Belgium (22.4%) and Portugal (21.6%).
Are you sure about those numbers Greece and Portugal had what 9% defecit last year alone that's the defecit so are you saying Portugal and Greece a few years ago were sovrign debt free?? Nope. Iirc Greece has about 130% debt to GDP and japan is roughly 250%.
The uk was circa 55-60% below Germany and pretty much all the key other countries however our defecit is higher sp our total debt is growing at a higher rate than others
Ireland have a IMF and ECB loans of E150 billion I'm highly confident irelands GDP is c100billion.
At the risk of being hit with a "someone is WRONG on the internet" meme
US federal spending is in the region of $3.5 trillion, and the deficit is in the region of $1.5 trillion. Their total debt is currently approaching their $14.294 trillion debt ceiling. And no, they were not debt free before the recession. I don't know when they were last debt free, I'm not even sure if they have ever been debt free, but certainly their debt has increased significantly over the past 10 years.
Iirc Greece has about 130% debt to GDP and japan is roughly 250%.
The uk was circa 55-60% below Germany and pretty much all the key other countries however our defecit is higher sp our total debt is growing at a higher rate than others
Ireland have a IMF and ECB loans of E150 billion I'm highly confident irelands GDP is c100billion.Welshbeef, you appear to be confused about the terms "financing requirement" and "deficit".
As I said above, the US had a budget of around $3.5 trillion, and their GDP is around $14-$15 trillion. So their financing requirement (ie the amount that they need to raise through taxes and borrowing) is $3.5 trillion, which, according to the IMF, will be 28.8% of their GDP.
The same principal with different figures applies to Greece, Italy, Belgium and Portugal. Their deficit and their financing requirements are completely different.
Work-Shy-Wanabe said:
But add interest, right? Who decides that interest rate? Is this the same 'base rate'?
I read that the US deficit is $4 *trillion per year and total debt is $14 *trillion. Where they debt free before the credit crunch then?
Someone more knowledgeable than me about the bond market can explain in better detail how the rates are set, but no the treasury bond interest rate is not the same as the base rate.I read that the US deficit is $4 *trillion per year and total debt is $14 *trillion. Where they debt free before the credit crunch then?
US federal spending is in the region of $3.5 trillion, and the deficit is in the region of $1.5 trillion. Their total debt is currently approaching their $14.294 trillion debt ceiling. And no, they were not debt free before the recession. I don't know when they were last debt free, I'm not even sure if they have ever been debt free, but certainly their debt has increased significantly over the past 10 years.
Work-Shy-Wanabe said:
Are those UK figures % of GDP for our total debt or deficit?
I don't know what some of the figures being quoted are, but our 2011 deficit is due to be around 11% of GDP.Welshbeef said:
Gargamel said:
The US's total financing requirement for 2011 is 28.8% of GDP, according to the IMF ... just a tad ahead of Greece (24.0%), Italy (22.8%), Belgium (22.4%) and Portugal (21.6%).
Are you sure about those numbers Greece and Portugal had what 9% defecit last year alone that's the defecit so are you saying Portugal and Greece a few years ago were sovrign debt free?? Nope. Iirc Greece has about 130% debt to GDP and japan is roughly 250%.
The uk was circa 55-60% below Germany and pretty much all the key other countries however our defecit is higher sp our total debt is growing at a higher rate than others
Ireland have a IMF and ECB loans of E150 billion I'm highly confident irelands GDP is c100billion.
As I said above, the US had a budget of around $3.5 trillion, and their GDP is around $14-$15 trillion. So their financing requirement (ie the amount that they need to raise through taxes and borrowing) is $3.5 trillion, which, according to the IMF, will be 28.8% of their GDP.
The same principal with different figures applies to Greece, Italy, Belgium and Portugal. Their deficit and their financing requirements are completely different.
matsmith said:
As I said above, the US had a budget of around $3.5 trillion, and their GDP is around $14-$15 trillion. So their financing requirement (ie the amount that they need to raise through taxes and borrowing) is $3.5 trillion, which, according to the IMF, will be 28.8% of their GDP.
The same principal with different figures applies to Greece, Italy, Belgium and Portugal. Their deficit and their financing requirements are completely different.
Ah good point. That may explain the wide range of figures being quoted in this thread.The same principal with different figures applies to Greece, Italy, Belgium and Portugal. Their deficit and their financing requirements are completely different.
Work-Shy-Wanabe said:
matsmith said:
As I said above, the US had a budget of around $3.5 trillion, and their GDP is around $14-$15 trillion. So their financing requirement (ie the amount that they need to raise through taxes and borrowing) is $3.5 trillion, which, according to the IMF, will be 28.8% of their GDP.
The same principal with different figures applies to Greece, Italy, Belgium and Portugal. Their deficit and their financing requirements are completely different.
Ah good point. That may explain the wide range of figures being quoted in this thread.The same principal with different figures applies to Greece, Italy, Belgium and Portugal. Their deficit and their financing requirements are completely different.
Id always want to see absolute £'s debt & also the GDP abslute & its trend/forecast - fall out would clearly be the %'s you highlighted but it adds more granularity which for me is critical in understanding the dynamics.
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