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Mounting Government Debt

Various states around the World have accumulated immense amounts of debt and it's simply impossible to pay that debt. The sheer figures are galactic.

Perhaps the most famous case of national debt is the USA's debt. It's so huge that it's unplayable as many experts have warned, but it's still being accumulated year after year.

A comprehensive video with infographics of the USA's debt can be seen in this video:

Graphics Illustraing the Total US Debt

In October 2013, the estimated debt of the USA was in excess of 16.7 trillion US dollars. Back in 2011, the 14 trillion dollar figure seemed apocalyptic, but the amount of debt will easily surpass 17 trillion. And it's simply unpayable.

Some countries' GDP's are well surpassed by their mountains of government debt (Japan 214.3 % of GDP, Greece 161.3 % of GDP, Portugal 123.6 % of GDP - according to the IMF's figures in 2012 ). The USA has in excess of 78 % of its GDP (IMF, 2012).

Check out this infographic to comprehend the amount of debt in various other major economies (2012 data).
And this one for visualizing the US debt (also 2012 figures).

It's no necessarily the figures that are important. It's the type of debt and the direction of the debt that should also be taken into consideration.

It's also important to keep in mind how some countries are trying to tackle the debt. Cases vary from country to country.

The USA is trying to tackle debt by creating bonds and treasuries through the QE programme - as monetary easing. Selling for instance, bonds to foreign countries (like China) means literally "exporting the debt".
While Greece has taxed its citizens and Cyprus pushed forward a wealth tax, Hungary has taxed the banks.

Nevertheless, the monetary easing is a temporary solution. It requires money creation for the "bills to be paid", but this implicates inflation, so more and more money will be required to pay the debt.

Countries that resort to monetary easing excessively are essentially inflating a bubble. When that bubble pops, the respective countries will become insolvent. Bankrupt.

When states become over-indebted, then (among others) they're close to becoming unable to pay for- and maintain public services. States too can go bankrupt (because it happens rarely, it's very hard for people to imagine).

If this happens, it brings losses of jobs, rising poverty and possibly other things as well (depending on the type of crisis that could emerge - for example, it could become inflationary, therefore the prices would rise).

Mounting government debt could be part of the "ingredients" that the coming collapse will have. Undoubtedly debt will play an important role in the collapse.
Still, everyone should hope that the collapse can be avoided.

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