This chart is looking at all kinds of debt, not just sovereign debt. The UK’s staggering debt-to-GDP ratio is largely due to the size of its financial sector.
All financial sector debt is, to some extent, potentially government debt, since all governments end up having to rescue their financial sectors in the event of a crisis. That’s what brought down Iceland and Ireland.
And yet, for reasons we explained here, the UK is still seen as a gold-standard among safe-havens.
By no measure does the US look remarkable debt-wise — even household debt/GDP doesn’t look that bad. For that matter, Europe doesn’t look that bad either. Their problem is not debt, but fiscal/monetary structure
BUSSINESS INSIDER CLAIMS
“All financial sector debt is, to some extent, potentially government debt”
THIS IS A COMPLETE LIE!! OBVIOUSLY BUSSINESS INSIDER DOES NOT UNDERSTAND CAPITALISM OR THE RULE OF LAW!!!
In November 2008, Ecuador became the first country to undertake an examination of the legitimacy and structure of its foreign debt. An independent debt audit commissioned by the government of Ecuador documented hundreds of allegations of irregularity, illegality, and illegitimacy in contracts of debt to predatory international lenders. The loans, according to the report, violated Ecuador’s domestic laws, US Securities and Exchange Commission regulations, and general principles of international law. Ecuador’s use of legitimacy as a legal argument for defaulting set a major precedent; indeed, the formation of a debt auditing commission sets a precedent.
FYI BUSSINESS INSIDER AND INTERNATIONAL BANKERS, HERE IS HOW CAPITALISM IS SUPPOSED TO WORK!!
1.Availability of credit allows money to flow between savers and borrowers.
2.Resources and funds are allocated to various projects or investments during a boom phase.
3.Eventually borrowing becomes excessive and leads to malinvestment,
4.At this stage, adherence to free market theory would allow for an efficient cleansing period and a healthy recovery period. How? Irresponsible and unprofitable businesses fail. Bad debts get liquidated. Excess resources go on sale, flow into more stable ventures and pool together with more profitable resources controlled by healthy corporations or entities
NEWSFLASH UK,USA AND EUROPEAN BANKS FOUND TO BE UNPROFITABLE AND IRRESPONSIBLE IN THE MARKET PLACE.THEY GET LIQUIDATED AND ASSET STRIPPED IN THE MARKET PLACE BY RESPONSIBLE AND PROFITABLE BUSSINESS MODELS.(CREDIT UNIONS ETC..) THEY GET ARREST FOR FRAUD AS WELL!!
NO TAXPAYER BAILOUT
TOO BIG TO FAIL? OBVIOUSLY NOT!!
TOO BIG TO JAIL…..IT SEEMS SO….BUT ONLY FOR CORRUPT POLITIONS..NOT YOUR AVERAGE ICELANDIC CITIZEN FOR EXAMPLE,WHO CAN EVEN JAIL HIS PM FOR ATTEMPTING TO SELL THE ICELANDIC POPULATION AS DEBTORS SLAVES FOR UNPROFITABLE BANKERS…BUT THAT IS DIRECT DEMOCRACY FOR YOU!
BUSSINESS INSIDER CLAIMS
“since all governments end up having to rescue their financial sectors in the event of a crisis. That’s what brought down Iceland and Ireland.”
THIS IS ANOTHER COMPLETE LIE. ICELAND IS A DIRECT DEMOCRACY IT VOTED TO ARREST THE GUILTY BANKERS FOR FRAUD AND CONSPIRACY TO DECIEVE AND DEFAULTED ON PRIVATE BANKS AND THIER PRIVATE VENTURE CAPITALISTS. THE BANKERS ARE IN JAIL, SO IS THIER EX-PRIME MINISTER,THE VENTURE CAPITALISTS “TOOK A SEVERE HAIRCUT” AND ICELAND IS WELL ON THE WAY TO FINANCIAL RECOVERY.
IRELAND IS A REPRESENTATIVE DEMOCRACY (ELECTED DICTATORSHIP) SO THE PEOPLE HAVE NO VOTE ,NO VOICE AND NO CHOICE. THEY WHERE SOLD INTO DEBT SLAVERY BY CORRUPT POLITIONS.ACTAULLY IRELAND DID TRY TO ARREST THIER CRIMINAL BANKERS ,ITS JUST THIER CRIMINAL POLITIONS WOULD NOT LET THEM!! THEY SENT THE STATE BOOT BOY POLICE FORCE TO BEAT THE PROTESTORS WHILE THE MSM BLAMES JUST THE RAPE VICTIM!!
THAT’S WHAT BROUGHT IRELAND DOWN ,CORRUPT BANKERS AND CORRUPT POLITIONS AND A SYSTEM OF “FIAT” MONEY AND “REPRESENTATIVE” DEMOCRACY….BUT THE BANKERS AND POLITIONS STILL HAVE THE LIFESTYLE THEY HAVE BECOME ACCUSTOMMED TOO.
BUSSINESS INSIDER CLAIMS
“And yet, for reasons we explained here, the UK is still seen as a gold-standard among safe-havens.”
WELL THAT ACTUALLY DEPENDS ON WHO YOU ASK.
ASK FITCH OR S&P ,THEY WILL GIVE THE UK THE THUMBS UP, BUT ASK THE CHINESE RATINGS AGENCY AND ITS THUMBS DOWN FOR THE UK.AS ITS CHINA THAT IS BANKROLLING THE WORLD ECONOMY AT THE MOMMENT AND THE WESTERN ECONOMY WOULD COLLASPE OVERNIGHT IF THE CHINESE REFUSED TO FINANCE THEM , I WOULD SAY THE WESTERN RATINGS ARE NOT WORTH THE ELECTRICITY THEY ARE GENERATED WITH!!!…. AND TO LOOK WHERE CHINA THINKS IT IS A SAFE INVESTMENT ,IS A MUCH BETTER GAUGE OF SECURITY!!
Chinese rating agency strips Western nations of AAA status
China’s leading credit rating agency has stripped America, Britain, Germany and France of their AAA ratings, accusing Anglo-Saxon competitors of ideological bias in favour of the West.
The US falls to AA, while Britain and France slither down to AA-. Belgium, Spain, Italy are ranked at A- along with Malaysia.
Dagong rates Norway, Denmark, Switzerland, and Singapore at AAA, along with the commodity twins Australia and New Zealand.
AN INDEPENDANT SCOTLAND WOULD BE AAA TOO IF IT WAS NOT PART OF A FINANICAL BASKET CASE STATE CAPITALIST UK!!!!
IMHO KNOWING THAT THE WESTERN BANKING SYSTEM WAS RIDDLED WITH CORRUPTION AND FINANCIAL INCOMMPITANCE ,WHO IN THIER RIGHT MIND WOULD INVEST IN THIS FINANCIAL SYSTEM, IF IT WAS TO RECOVER,KNOWING THAT IT IS ALL THE SAME CROOKS RUNNING THE UNPROFITABLE ,IRRESPONSIBLE AND TOTALLY CORRUPT FINANCIAL INSTITUTIONS?
THERE IS NO REAL REASON ON EARTH TO BAIL OUT UNPROFITABLE BANKERS!!!! ULTIMATELY IT WILL ONLY PROLONG THE AGONY!!!!
“If the American people ever allow private banks to control the issue of their money, first by inflation and then by deflation, the banks and corporations that will grow up around them (around the banks), will deprive the people of their property until their children will wake up homeless on the continent their fathers conquered.”
HERE WAS THE REAL FINANCIAL SITUATION JUST BEFORE THE CREDIT CRUNCH HIT!!
NOTICE THIS IS AT THE END OF A BOOM PERIOD ,IN A BOOM AND BUST ECONOMY, WHO DID THE BANKERS EXPECT WAS GOING TO PAY THE DEBT WHEN THE BUST PERIOD ARRIVED…OR DO OUR FINANCIAL BRIGHTEST AND BEST NOT EVEN UNDERSTAND BOOM AND BUST ECONOMICS?…FYI 181ST IS LAST PLACE!!!
Rank Country CAB USD, bn
1 People’s Republic of China 371.833
2 Germany 252.501
3 Japan 210.967
4 Saudi Arabia 95.762
5 Russia 76.163
6 Switzerland 70.797
7 Norway 59.983
8 Netherlands 52.522
176 Greece -44.218
177 Italy -52.725
178 Australia -56.342
179 United Kingdom -105.224
180 Spain -145.141
181 United States -731.214
This is a list of countries and territories by current account balance (CAB), based on the International Monetary Fund data for 2007, obtained from the latest World Economic Outlook database (October 2008).
WITH RESULTS LIKE THIS, NONE OF THEM DESERVE A BONUS NEVERMIND A BAILOUT..BTW BONUES ARE FOR DUMMIES,THEY INCREASE BAD WORK PRACTICES AND CORRUPTION!..JUST LOOK AT THE RESULTS OF THE FINANCIAL INDUSTRY FOR BONUS DRIVEN PERFORMANCES!!
BUSSINESS INSIDER CLAIMS
“By no measure does the US look remarkable debt-wise — even household debt/GDP doesn’t look that bad. For that matter, Europe doesn’t look that bad either.”
SO KEEP CALM AND CARRY ON….BUT THIS IS ANOTHER COMPLETE LIE ,THE EUROZONE IS FACING IMPLOSION
AND A BANKER COUP IS GOING ON AMOUNGST EUROPEAN GOVERNMENTS TO KEEP THE AUSTERITY MEASURES AND BAILOUTS GOING.
WHILE THESE BAILOUTS KEEP GOING THE ECONOMY WILL NOT RECOVER AND PEOPLES STANDARDS OF LIVING WILL CONTINUE TO DECLINE…BUT THE BANKERS STANDARDS OF LIVING WILL CONTINUE TO INCREASE!!
BUSSINESS INSIDER CLAIMS
“Their problem is not debt, but fiscal/monetary structure”
ON THIS WE AGREE, BUT I THINK WE DISAGREE ON THE SOLUTION.
WE NEED TO AUDIT OUR FINANCIAL INSTITUTIONS AND ARREST THE GUILTY! THERE IS A LOT OF MASSIVE FRAUD GOING ON!!INCLUDING FIXING GOLD PRICES AND INSIDER TRADING
WE NEED TO DEFAULT TODAY AND IMPOSE A GOLD STANDARD CURRENCY AND ARREST THE GUILTY BANKERS AND POLITIONS AND THINGS WOULD IMPROVE IMMEDIATELY
DIRECT DEMOCRAY WOULD SOLVE ALL THESE ISSUES.
ONE BIG WORRY
IS THAT OUR CORRUPT AND DELUSIONALLY INSANE POLITIONS WILL BECOME SO DESPERATE THAT WAR WILL BECOME A MORE AND MORE DESIRABLE SOLUTION.
REMEMBER THE YUGOSLAVIA WAR WAS A LIE
THE AFGHANISTAN WAR WAS A LIE
THE IRAQ WAR WAS A LIE
THE LIBYA WAR WAS A LIE
THE MSM ARE LYING ABOUT IRAN RIGHT NOW ,JUST TO START ANOTHER PROFITABLE WAR
ITS JUST OPERATION AJAX II. IRAN NATIONALISED ITS OIL INDUSTRY BEFORE AND THE UK/USA INVADED THEM THEN AS WELL!! ULTIMATELY IT TURNED A SUCCESSFUL SECULAR SOCIALIST COUNTRY INTO AN ISLAMIC REPUBLIC!!
The 1953 Iranian coup d’état deposed the democratically elected government of Iranian Prime Minister Mohammed Mosaddeq.In a plan called Operation Ajax (less commonly TPAJAX), the United States’ Central Intelligence Agency (CIA) organized and executed the overthrow of the nationalist government of Prime Minister Mosaddeq, at the request of, and with support from the British government. This enabled Mohammad Reza Pahlavi to become an authoritarian monarch, who went on to rule Iran for 26 years until he was overthrown in 1979
WE NEED TO DISBAND OUR TAXPAYER FUNDED CORPORATE INVASION FORCES AND REPLACE THEM WITH A MILITIA ARMY MODEL,IT WILL MAKE US A LOT SAFE AND RICHER!!
BUT WAR GETS THE PEOPLE BACK BEHIND THE GOVERNMENT (REMEMBER TO WAVE YOUR FLAGS…RULE BRITANNIA…BRITANNIA WAVES THE RULES)
WAR IS GOOD FOR THE ECONOMY(AS WE HAVE TO REPLACE THE STUFF WE BLOW UP)
WAR IS GOOD FOR UNEMPLOYMENT FIGURES (AS WE SHOOT A LOT OF THEM)
AND POLITIONS AND THIER LOBBYISTS MAKE A LOT OF MONEY FROM WAR….
SO THEY MAKE A LOT OF WAR
IT CONTINUES TODAY
ITS BEEN THE GAME PLAN FOR A VERY LONG TIME….
ITS NOT THE ECONOMY ITS THE GOVERNMENT STUPID!!