Americas Debt

The FT had an interesting article on this subject a week ago, in amongst almost daily articles about the impact of rising American debt.  What caught my attention was a paragraph stating that by 2020 the Congressional Budget Office predicts that the debt to GDP ratio will be at 90%.  Interesting the IMF thinks it will be at 115%.

Total debt at this moment is in excess of $9,000bn, which means that for every single one of the 308,745,538 residents, they each owe $29,150.  So for a family of four their ‘liability’ toward the national debt is $116,600.  This doesn’t count what they owe on their credit cards 🙂

In the same week there were also articles about how American business resist any attempt to do anything about the national debt because of the potential impact to government contractors in defense etc.  I think it is going to be very interesting to see what will happen if the Asian dominated markets begin to force the same medicine upon America as the US did to Asia in order to correct the Asian crisis in 1997.

I am amazed that some folks who I work with think that moving to the US is still a good idea.  I for one, will not be joining them. 


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