Deficits in public budgets around the world are eroding.
As the OECD reports, record debt levels in Europe, the US and Japan are expected in the coming years. Thus, the established economies see themselves in the vortex of a debt spiral, the end of which no one can foresee.
Germany is still doing well in an international comparison, despite the desperate budget situation. The Federal Republic will make new debts this year in the amount of 3.2 percent of the gross domestic product. In the coming year, the deficit of the OECD calculation will increase to 5.3 percent. In 2011, the new debt should then be at 4.6 percent of economic output. Public budgets were balanced last year.
Overall, the situation is much worse in the usd area.
After last year’s deficit of states with the usd as a means of payment was 2.0 percent of the economic output, it will be 6.1 percent this year. Next year, 6.7 percent of new debt will be taken up, in 2011 still 6.2 percent. Within three years, the usd countries are thus raising liabilities amounting to 19 percent of the European national product. The European Stability Pact foresees new borrowing of no more than three percent of the gross domestic product per year.
The European debt crisis is still moderate compared to the US budget. After the budget deficit of the Americans last year already amounted to 6.5 percent of GDP, 11.2 percent of new debt will be made this year. In the coming year, the deficits should then also be in the double-digit percentage range with 10.7 percent. In 2011, the US will report to the OECD as 9.4 percent of GDP as a new debt. Within just four years, debt growth in the world’s largest economy thus amounts to more than 37 percent of the domestic product.
In Japan too, which is one of the leaders (in the negative sense) of the big economies in terms of total debt, the picture of desolate households is determined. New borrowing at 2.7 percent last year was still reasonably high. This year it will be 7.4 and in the coming year 8.2 percent. In 2011, Japan will account for 9.4 percent of GDP as new debt.
In view of the immense debt collection, the observer may be in doubt. The questions that have been asked in terms of public debt for decades, gain in view of the dramatic increase in momentum in explosiveness: Who should actually pay for everything ??