EU Debt to GDP

USA 2012 Debt to GDP 105%

The USA debt the government owes itself, the debt-to-GDP ratio is roughly 73%. But including the debt held in government accounts, the ratio is about 105%. Either way, it’s the biggest debt load the country has had since World War II. That’s due to both the shrinkage of the overall economy — because of the terrible financial crisis/recession — and the increases in Federal spending, aimed in part at supporting the economy. By way of comparison, Moody’s lists troubled European countries such as Italy and Spain as having debt-to-GDP ratios of 120% and 69% at the end of 2011, respectively.

Response To: UK second-quarter GDP revised up

FT Quote: ""However, there are signs that the very weak economy is holding consumers back from spending."" Not so, excessive commodity inflation is holding consumers back in addition to their debt level created by inflated property prices. Inflated property removed the disposable income. Looks like Grodon Browns light touch credit boom banking policy did not either end boom bust, deliver sustainability, fairness within society. What it certainly did was create the complete opposite, brought forward spending, enshrined people within the banking system for a long long time and made buy to let debtors who DON'T work for their money, filthy rich. I'm afraid we live in such a sad sad world that wants an always UP mentality. I tell you now, a couple of years of recession will be a tonic for sustainability. We may get that when Keynesian King leaves the BOE, we need a German / Canadian BOE governor that can knock some sense into banking and any political party which wishes to create a ridiculous >2% inflation economy. Original FT.com Article: http://www.ft.com/cms/s/0/0f8ad8d6-edc7-11e1-8d72-00144feab49a.html#axzz24MySMwSc