West Europe has a BIG debt problem. Not the USA.

Aug 2014
3,572
Australia
#21
Would you suggest that Canada is getting into deep trouble as well?
For a short while, Canada ran surpluses and repaid parts of the debt during the late 1990s and early 2000s; after that, Canada sunk into the vicious cycle again.
Similarly in the USA; debt reduction happened during the late 1990s and things started falling apart again.
Canadian household debt is at record highs. Personal bankruptcies in Canada are surging dramatically - up 9.2% from last year. If interest rates increase any further, it will get a lot worse. Australia is in the same boat but we are unlikely to have any rate increases.

 
Feb 2015
90
south Slavic guy
#23
I am not sure how they would do that, given that several countries in Europe have unemployment figures circa 10% or more (and those are HEAVILY doctored figures, the reality is of course worse)
That's the actual stupidity of EU.

You have countries with 20%+ youth uenmployment... and you take people from the other side of the World to work (and live) here.

In what reality is this a good practice? LOL. I cannot think of anything more stupid than that.
 
Likes: Linschoten
Jan 2010
4,031
Atlanta, Georgia USA
#24
I am not sure how they would do that, given that several countries in Europe have unemployment figures circa 10% or more (and those are HEAVILY doctored figures, the reality is of course worse)
Just wait. Because of falling birth rates, most European countries will need labor before long. And so will the US and Japan.
 
Jan 2010
4,031
Atlanta, Georgia USA
#25
That's the actual stupidity of EU.

You have countries with 20%+ youth uenmployment... and you take people from the other side of the World to work (and live) here.

In what reality is this a good practice? LOL. I cannot think of anything more stupid than that.
I don't believe that Europe is "taking" people--rather people are going there despite immigration laws--as in the US
 

tomar

Ad Honoris
Jan 2011
12,538
#26
It isn't a problem if you can service that debt. Check the trend of each country and see whether it is increasing or decreasing. Germany acknowledged that they had a debt problem and took steps to redress it. Obviously they can't fix it overnight but they are heading in the right direction. IMO, out of all the countries in your list, Germany is in one of the healthiest economic positions. And they are doing it while maintaining generous social programs. The massive influx of immigration has caused social tensions and put pressure on infrastructure but it was good for the economy. Time will tell whether those other issues will sort themselves out.
Actually, that's not it

Put simply, there is "good debt" and "bad debt"..... Good debt is debt taken on to invest in order to bring more revenues later on... Bad debt is debt taken to simply spend...

On a individual level, good debt would be for example taking a mortgage to buy real estate which you then rent out to generate a monthly rent payment higher than your monthly debt repayment (or live in it and thus you dont have to pay rent anymore)... bad debt would be taking a personnal loan to buy that latest gizmo or toy which you will throw away in a year's time

Many countries are taking additional debt to simply pay off interest on their debt or finance current spending, thus it is bad debt....
 

tomar

Ad Honoris
Jan 2011
12,538
#27
Just wait. Because of falling birth rates, most European countries will need labor before long. And so will the US and Japan.
Japan is looking at a population decrease of up to a third within 50 years (if current trends continue)...... But this does not mean they will need labor... In fact if the whole world could reduce its population similalry it would be great for the planet.... Even with this decrease Japan's population would still be higher than in 1950..... This decrease really should not be seen as a big deal but as a "return to normal".... The problem is not this decrease but the fact that some countries continue to grow at runaway rates....
 
Likes: Baldtastic

tomar

Ad Honoris
Jan 2011
12,538
#28
I don't believe that Europe is "taking" people--rather people are going there despite immigration laws--as in the US
At the same time, lax immigration rules are encouraging illegal immigration.... as in the US...... 12 million illegals in the US, unknown number of millions in the EU....
 
Aug 2009
5,066
Londinium
#29
Just wait. Because of falling birth rates, most European countries will need labor before long. And so will the US and Japan.
Just wait a little longer and the labour requirement will drop massively as far more automation and AI comes into wider society, as just one example, driverless cars (+warehouses etc). This will impact the professional jobs such as engineering and medicine more. Falling birth rates are a good thing, with a few exceptions such as the massive pension black hole.
 
Oct 2013
12,759
Europix
#30
At the same time, lax immigration rules are encouraging illegal immigration.... as in the US...... 12 million illegals in the US, unknown number of millions in the EU....
How comes that we know the figures for illegal immigration in US but don't know the figures for illegal immigration in EU ?!?

There's something wrong in that, don't You think ?
 
Last edited: