The last couple of years have been coloured by regular comments and articles on all news channels and newspapers about the economic problems facing the world. What this commentary has boiled down to is principally the need to reduce particular countries annual deficits and thereby reduce the ever increasing overall amount of debt countries have been and are accumulating.
I often wonder to whom these countries actually owe this money. Who are their creditors? Do these creditors have still even more money to loan out. This topic is undoubtedly worthy of further investigation but not here, later.
All this economic mumbo jumbo is pretty boring, after all if you want to reduce what you owe, (your current monthly debt), or the overall total amount of money you owe, (deficit- current monthly debt plus other outstanding mortgage/loans etc). You must either spend less or earn more money. It's all pretty basic.
This approach, projected to a country's economy, simply means that the government has to spend less on the services it provides, increase the amount of tax it collects or develops ideas, projects, incentives which increase the economic activity and bring growth to the economy. The results, of these changes, appear in a country's higher monthly and yearly GDP figures and a reduced debt level.
This rather simplistic approach does not necessarily solve a Country's debt or deficit issues. Government initiatives sometimes lead to even higher deficits and overall debt because they reduce the number of people in jobs and hence lower overall income tax generation and subsequently lead the country into recession.
I often thought that every Government should publish regularly a full and accurate disclosure of all the economic facts and figures pertaining to their debt/deficit position. If they did, then, everybody would know where we and the country stood. Where the country was heading and what the potential consequences would be of inaction.
Well, ladies and gentlemen let me introduce you to "usdebtclock.org." I can readily recommend it to anyone with access to a computer.
What we Europeans need is for the EU in Brussels to reproduce the EU version of this US Government web site.
I might even suggest "ec.debtclock.eu." for the web site's name.
With such a facility available, we citizens, would be better informed and might be able to make a more meaningful contribution to the debate on the pro and cons of the proposed solutions to the economic dilemma we are all currently facing.
The facts and figures "usdebtclock.org" displays are fascinating. It demonstrates the changes in the different elements of the US economy in real time and shows how they interact. Tax receipts, government expenditure on food stamps and health care etc and their impact on the GDP plus the National debt and Budget deficit are all there to see. It is truly hypnotic in fact.
Believe it or believe it not, the US National debt climbs at the rate of around 1200 dollars per minute and will reach a grand total of some 17 trillion dollars around the end of July. Wow wee!!! What a way to run a business, sorry country!
In simpler terms every American man woman and child owes around 55,000 $.
I wonder if they know this. How will they react, if and when the bailiffs come calling?
If nothing happens to the current annual budget deficit of some one trillion dollars per year, e.g. no cuts in government spending are brought into force then the national debt will reach 23 trillion dollars by 2017.
Keep printing the money Uncle Sam. Soon mandatory Mandarin will be compulsory.
Along with the US data there is a very good page comparing the main economies around the world. Russia and China's numbers look very good when compared to the rest. But the UK, for example, looks horrific with a total external debt to GDP ratio above 400
No wonder I left the place in the sixties. It's bankrupt.
The numbers go on to show Debt to GDP ratios climbing in every country.
For the rest of Europe the numbers basically describe the North / South divide with Southern European countries showing much higher Debt numbers than their Northern cousins.
You know, I really wonder who covers this Debt? Surely all sane individuals stopped buying government bonds years ago. Will this Debt ever be repaid? Or is it simply a race to see who can climb the quickest and highest on this house of cards.
With access to "ec.debtclock.eu." we would at least know who is currently in the lead.
HIB
