The Looming Debt Crisis

Solid numbers from the IMF comparing America's debt load with other country's.

The Looming Debt Crisis

The IMF has some hard data to back up its concerns and recently released a report in which it has produced a table that that captures the entire essence of the "grow or die" predicament facing not just the US, but the entire developed world.
There are a number of things to dissect in the table, so let's take them one at a time.
This first is that the total financing needs for the sovereign governments (only) of most of the so-called "advanced economies" has expanded between 2010 to 2011 from 25.8% of GDP to 27.0% of GDP (green circles). This means that even with the alleged recovery fully in place -- a statistical mirage in many respects -- the debt financing needs have grown larger, not smaller.


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