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Countries And Governments With The Most Debt

Staff Writer — Fri, 27 Aug 2010 00:21:13 +0000

Though it may sometimes seem like it, the United States is not alone in the swimming pool of debt. There are other countries and governments that are either in the shallow end or about to plunge into dangerous waters. It can actually make us feel better to know that others feel our pain.

The CIA World Factbook 2010 includes a list of countries arranged by the amount of public debt they hold. The figure represents the total of all monies borrowed by their governments minus any repayments. Figures reflected in the Factbook are listed as a percent of the annual Gross Domestic Product (GDP) as of 2009.

Zimbabwe comes in at number one with public debt that is 282.60 percent of GDP. This is the only country with over 200 percent public debt when compared to GDP. Japan, at number two, has public debt in the amount of 189.30 percent of GDP. Just behind it is Saint Kitts and Nevis, a federal nation comprised of two islands located in the West Indies. Having a public debt that is 185 percent of annual GDP is a very bad situation considering this is the smallest sovereign nation located in the Americas as measured by both population and area.

Lebanon, Jamaica, Italy, Greece, Singapore, Iceland, and Sudan follow respectively on the list, all with public debt of more than 100 percent of GDP. Belgium, Sri Lanka, Egypt, Israel, France, Hungary, Portugal, Canada, Germany, and Malta round out the top twenty. The United Kingdom comes in at number 22, with public debt that is 68.10 percent of GDP. The United States is number 47, possessing a public debt figure that is 52.90 percent of GDP.

It is rather shocking to see how many countries have public debt that is over 50 percent of their GDP. Foreign countries like Greece and even the UK have recently faced debt crises and it is possible that other nations will soon follow. It seems there is no end in sight to the excessive spending habits of many nations throughout the world.

Will The U.S. Ever Get Out Of Debt

Staff Writer — Thu, 26 Aug 2010 09:47:01 +0000

The national debt situation has risen to levels unimaginable and, when it comes down to it, incomprehensible. Who can wrap their heads around a figure of over $13.3 trillion? You see it in writing, but think about what that equates to in real money. With numbers like this, we wonder if the U.S. will ever dig its way out of the abyss vortex it has tumbled into in the past decades.

According to a statement on the U.S. National Debt Clock, the level of national debt has increased an average of $4.11 billion on a daily (yes, that’s daily) basis since September 28, 2007. Yet, spending hums along as if nothing were wrong, despite the government and individuals becoming more highly leveraged by the second.

Some people are wise to the situation and wish for an early demise rather than facing their existing debt or sinking in deeper. The media continues to speculate the result of out of control government spending. The truth is, with government spending at $65 trillion, the point of no return was most likely passed long ago.

The public debt, military and civilian retirement benefits, unfunded Social Security and Medical benefits, and other financial obligations have surpassed $53 trillion. This is almost equivalent to the Gross Domestic Product of the world and four times the GDP of the U.S. Some estimates peg the national debt to increase by $9 trillion by 2019. This means that people will pay taxes of over $100,000 during their working lives to pay for just the interest on this increased debt.

While an economic crisis forces the U.S. to spend more money to get the economy back humming along, the national debt can keep this economy from doing well for several generations. It can even bankrupt the U.S., something that is beyond the understanding of most of us. Current budget cuts do not even put a dent in the current debt figure, especially when some ongoing initiatives, which carry high costs and are not effective, have not been put on hold or cut.

Consumer Debt Statistics

Staff Writer — Thu, 26 Aug 2010 09:42:58 +0000

The June 2010 Consumer Credit report issued by the Federal Reserve notes that consumer credit experienced a 3 ¼ percent annualized decrease during second quarter 2010. Non-revolving credit was relatively unchanged, while revolving credit experienced a 9 ½ percent annual rate decrease. Total consumer credit stands at 2.4 trillion dollars.

As of that report, the average interest rate that commercial banks were offering for a 48-month new car loan was 6.26 percent. Finance companies offered new car loans that averaged 4.02 percent and matured in 63.1 months. Personal loans granted by commercial banks for a 24-month period averaged an 11 percent interest rate.

Credit card debt, student loans, auto loans, and loans for trailers or boats comprise the consumer credit figure. As of June, the loan to value ratio for a new car loan was 87 percent, meaning that consumers placed down payments of 13 percent, on average. The average amount financed was $27,980, which is just slightly more than was financed during each of April and May.

Credit cards are accepted at over 24 million locations throughout 200 countries and territories. According to one report, the credit card charges within the U.S. rose from $69 billion per year to over $1.8 trillion per year between 1989 and 2006. In March 2009, the American Bankers Association estimated that every second, ten thousand payment card transactions are made around the world.

Seventy eight percent of U.S. consumers own at least one credit card, 80 percent own a debit card, and 17 percent own a prepaid card. As of January 2010, approximately 69 percent of U.S. consumers had used their credit cards in the prior month and approximately 73 percent had used one in the past year. At that time, approximately 56 percent of consumers had carried at least one unpaid balance in the prior 12 months.

U.S National Debt Statistics

Staff Writer — Tue, 24 Aug 2010 12:08:27 +0000

As experts warn of another dip further into the pool of recession, taking the look at the U.S national debt statistics may cause a person to throw themselves head first into the deep end. The figures are sobering, to say the least, and extremely depressing to be totally honest. They have gotten incrementally much worse over the past decade and there is no sign of improvement.

The national debt represents the direct liabilities of our federal government. Sometimes, different concepts are used when referring to the term “national debt.” The public debt is the amount of public debt securities that the U.S. Treasury issues. Treasury securities include savings bonds, securities issued to local and state governments, and public debt securities, such as treasury bills, bonds, and notes. The debt held by the public is non-inclusive of the debt held in government accounts. The gross federal debt is the amount of public debt securities plus a fraction of the securities that are issued by government agencies.

The debt held by the public is the most useful figure because it represents the amount that the government borrows to finance its deficits. As of August 20, 2010, the amount of debt held by the public was an astounding $8.83 trillion dollars. The Bureau of Public Debt publishes updated public dept figures daily on its Web site.

The gross domestic product rose during the first quarter of 2010 at an annualized rate of 3.2 percent. This was less than the 5.6 percent gain experienced in the fourth quarter of 2009 but greater than the third quarter 2009 gain of 2.2 percent. The change between the end of 2009 and beginning of 2010 was attributed to a smaller change regarding inventory management. Inventories were building for the first time in two years but only contributed 1.6 percentage points to the GDP growth.

According to the May 10, 2010, Profile of the Economy report by the Office of Macroeconomic Analysis, the first three months in 2010 saw the economy grow for the third straight quarter. This good news comes on the heels of a year and a half of economic contraction. Fluctuations occur daily as the economy continues to struggle and we can only cross our fingers and hope for the best.

Learn Debt Consolidation » Uncategorized

Countries And Governments With The Most Debt

Will The U.S. Ever Get Out Of Debt

Consumer Debt Statistics

U.S National Debt Statistics

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