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Guess Which Country Has Debt Of Nearly 1000% Of GDP… – Business Insider

 

Debt Vs GDP

 

It’s the UK, per this excellent chart from Morgan Stanley.

A few notes here:

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.

via Guess Which Country Has Debt Of Nearly 1000% Of GDP… – Business Insider.

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