Greek Tragedy

Not Just a A nonher Grecian Tragedy The Greek bond market crisis can be summed up sooner simply - too much debt, too much spending, not enough r pointues. Riots, 15% interest rates and slashed budgets are the results, so far. And the Greeks are not alone. Spain and Portugal just had their debt downgraded by S&P and Italy and the UK are teetering. But we live in the States and problems like that dont happen here... Right? The US is to a greater extent like Greece than you know... The table to the right is from a juvenile report entitled The Future of Public Debt. published by the Bank for International Settlements (BIS). It is an analysis of the relationship between a countrys debt, their deficit and their GDP. The higher the debt to GDP ratios, the worsened the fiscal situation. This is because the cost of servicing the debt can cause a drain on the economy. Greeces monetary chemical equilibrium (Budget Deficit) is -9.80% of GDP, epoch the Statess is -10.70%. Of the countries listed, only Ireland and the UK have worse Fiscal Balances than the US for 2010. Most countries listed are expected to reduce their deficits slightly in 2011. Currently, Portugal and Spain are being targeted by the bond vigilantes, even though they are in obviously better fiscal condition than the US.

One has to wonder when it will be Americas turn to have to deal with an imploding bond market. The BIS puts it more succinctly - This leads us to conclude that the question is when markets will shekels putting pressure on governments, not if. Fiscal occurrence and Prospects as a percentage of GDP Fiscal Balance Gen Govt Debt 2007 Germany Greece Ireland Italy Portugal Spain United Kingdom United States Asia 0.2 -4.0 0.2 -1.5 -2.7 1.9 -2.7 -2.8 0.1 2010 -5.3 -9.8 -12.2 -5.4 -7.6 -8.5 -13.3 -10.7 -3.5 2011 -4.6 -10.0 -11.6 -5.1 -7.8 -7.7 -12.5 -9.4 -3.6 2007 65 104 28 112 71 42 47 62 37 2010 82 123 81 127 91 68 83 92 40 2011 85 130 93 130 97 74 94 100 41 By putting pressure on governments, what they believe is a Asia is China,... If you want to get a full essay, rank it on our website: Ordercustompaper.com

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