If you have watched the U.S. debt clock thing-a-ma-bob spin out of control the U.S. financial situations seems almost hopeless. But is it really that bad? According to the good folks at the CIA, the U.S. ranks as having only the thirty-fifth worst public debt-to-GDP ratio on the entire planet with the following 20 at the top of the list:
1. Zimbabwe 220.10 (public debt as % of GDP)
2. Japan 211.70
3. Saint Kitts and Nevis 200.00
4. Greece 161.70
5. Lebanon 134.00
6. Iceland 128.30
7. Jamaica 125.50
8. Italy 120.10
9. Eritrea 118.50
10. Singapore 118.20
11. Portugal 112.80
12. Ireland 105.40
13. Belgium 99.70
14. Barbados 95.90
15. Sudan 93.70
16. Canada 87.40
17. United Kingdom 86.30
18. Belize 84.80
19. Sao Tome and Principe 84.70
20. France 84.70
and so on until…..
35. United States 67.70
Could we cope at this level? After all, during WW II it was even higher. The U.S. also benefits as the world’s safety currency and from the paradox that large debt holders, think China, probably can’t dump their holdings without sparking a global selloff that cuts into their own returns.
But still that’s some pretty lame company to keep for a supposed economic superpower. And do we want to sit back and stay beholden to the China for eons. Savvy, not draconian, debt management could help solve the problem. So could a highly employed work force and more free trade. The world’s most impressive countries sport a debt-to-GDP ratio below 50: China 43.10Sweden 37.50
South Korea 33.60
Hong Kong 30.10
Australia 26.80
Luxembourg 16.90
Russia 8.30 There’s isn’t any singular tax policy or level of social program slashing that put those nations on the list. The common denominator is each country is highly productive with its resources – oil, tech, or financial – and competitive overseas.
Source: Central Intelligence Agency
Clark Schultz Blog 