Debt is the Opium of Bad Governments
The map displays the problem of the Eurozone and most modern nanny states. Some of the countries that are worst off include those with a combination of high debt, high tax rates, high levels of social welfare benefits, and low fertility rates. Countries such as Greece, Spain, Italy. In fact, most of Europe falls into that category. Fortunately, native Europeans have high average IQs. Where there is intelligence, there is hope. Likewise, it is the intelligence of the Japanese people which gives Japan hope.
Out of all the Anglosphere, Australia and New Zealand appear to be the least indebted. Canada has debt, but it is also very rich in natural resources and in intelligent people. The UK is steeped in debt, is drowning in political correctness, and is under a growing siege from fanatical Muslim immigrants. There may be no cure for all of that. The US under Obama is on an accelerated debt growth curve that may well destroy the nation's credit before 2020.
Whenever your government tells you it is out of economic danger, with smooth financial sailing ahead, just look at the map. Then look at your country's debt curve.
Labels: economics
posted by al fin at 5:12 pm
3 Comments:
I find it amazing how small of an increase in the national debt was needed to finance the Civil War and WW1, compared to the cost of financing the welfare state.
I'm always curious when I see the curve on any given graph extended exponentially. It's a sure sign that someone is engaging in something other than reality. I agree that our debt is bad and fear that it will get much worse, but such a picture defies history. Look at every other instance of a rise and you will see it followed after a short time by a fall. No, perhaps, because our leaders have awaken to the danger, but still, nothing grows without end.
Yes. An exponential curve taken too far assumes there are no limits to the underlying dynamic -- in this case, debt. Eventually, of course, people will no longer lend to governments that ride the exponential too far.
At what point will that happen to the US? When did it happen to Greece or Iceland? Not a fair comparison, since the US is the global pivot, the hegemonic military superpower, the largest economic engine in the world.
Obama - Pelosi is a very busy little regime, however. Unless something changes, sometime before 2020, debt will exceed 90% of GDP.
If the world hegemon goes down, there will be fallout and much collateral damage.
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“During times of universal deceit, telling the truth becomes a revolutionary act” _George Orwell
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