Just how bad is the economy?

[dfiant]

Welcome to the new normal.


Yeah. Russia, China, Australia, Iran, Brazil, most of Eastern Europe, Mexico, and most of South America all have very low debt loads.

The US, Canada, Japan, India, and most of Western Europe are in trouble.

Per capita USA debt is slighter lower than Australia's

[cloud999]

Per capita USA debt is slighter lower than Australia's

Australia has the highest assets per capita in the world...which dramatically offsets that debt. Meaning the average Australian has a world-class net worth. In contrast, the average American has a negative net-worth (is in debt). Further, your government is running surpluses, paying down that debt...unlike the entire EU and most of North America.

Of all the anglosphere countries, Australia is in the best financial position, by far.

[dfiant]

true that, except our government hasn't run a surplus since 2006/7 and won't run a surplus before 2013

But having said that, economically speaking running deficits are as healthy for an economy as running a surplus. A deficit allows for spending on infrustructure more so than in a surplus, where spending is cut to produce the surplus.

[cloud999]

true that, except our government hasn't run a surplus since 2006/7 and won't run a surplus before 2013

We won't have one in the next decade, at best. I'd dance in the streets if we could run a surplus in 2013.

---

I think the confusion here depends upon your definition of debt. Australia's Public Debt held by the government is far lower than the US...but your external (private+plus) debt seems to be quite higher. We're talking about different numbers here. 20% of GDP vs. 95% of GDP, depending upon the form of debt.

Can you tell I hate accounting?

[dfiant]

no no no, I got that part before my last post, public and external, yes, our external is higher ;-)

[princealbertofb]

Let's all go and live in Australia and offset that good balance, lol....
JK

[HollandofFrance]

its bad -its because?obama i guess and government employees getting paid too much with too great of pension plans

[Inchante]

its bad -its because?obama i guess and government employees getting paid too much with too great of pension plans

[OrphanPip]

Yeah. Russia, China, Australia, Iran, Brazil, most of Eastern Europe, Mexico, and most of South America all have very low debt loads.

The US, Canada, Japan, India, and most of Western Europe are in trouble.

Apart from the past couple years of stimulus spending and too many tax cuts by the Tories, Canada ran budget surpluses all through the late 90s and early 00s, and only runs slight deficits by the standards of this recession. Debt isn't a problem if you have the ability to run your government without deficits, inflation eventually takes care of debt even if you can't pay it down. Our debt problem is under control, the US problem can easily be solved by cutting their spending.

(The UK is in a serious debt shit hole though)

[fredv3b]

the US problem can easily be solved by cutting their spending.

(The UK is in a serious debt shit hole though)

Why can the U.S. easily solve their debt problem with spending cuts, but the U.K. can't?


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