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

Oct 2013
12,759
Europix
#41
If I'm going to criticize the Balkans (and my country in particular) I can absolutely destroy it and it won't even be nice for reading. But that's not my point. I doubt anyone wants to hear about our problems. I can bash it, you can bash it, I don't care at all. I have already given up on the idea that this place can be a prosperous place one day, MAINLY due to bad genetical material. And a mixture of very different interests and habits.

My thread is for the Western World which, in some ways, is making even BIGGER mistakes than us, balkan people.

You know, exactly because I was born and have been living here for a good 30 years, I can tell you from experience that multiculturalism DOES NOT work!! It never really worked.

Multiculturalism has been here since the beginning of time basically. And I can tell you that it DOESN'T WORK!!

The West falls for it just because it's very NEW to it and its DISASTROUS consequences haven't been fully felt yet. 40-50 years is nothing for history in hindsight. The debt is only one side of a multi-sided problem that is immigration.
And as somebody already mentioned. All this unskilled workforce in the future will be totally useless because of automatization and development.

It's a big burden on the economy.
You missed the point, it wasn't about bashing Balkans nor about multiculturalism.
 

tomar

Ad Honoris
Jan 2011
12,538
#42
It should be noted that all mentions of GDP in this discussion should be preceded by the word "annual". In comparing a country's debt with GDP, you are comparing the value of debt with the amount of monetary value created in that country per year, NOT the amount of money that country has or ever will have. A better comparison is probably with assets. The USA has total assets about 15 times that of annual GDP.

Many people take on a debt, in the form of a mortgage, of 5 times, or more, of their annual income.
Well, true but "assets" do not really work in this case because most of them dont really have a commercial value (i.e. cant be sold or can be sold at only a fraction of their estimated price.... For example the Eiffel tower is valued at almost $500 BILLION..... but who would buy it at that price ? and that's prime real estate in the heart of a major European capital..... when you talk about stuff like national parks or decaying bridges or military bases or a nuclear powered aircraft carrier .... its really a hard sell).... Conversely a mortage is backed by (normally) a liquid asset which can readily be sold....

So really what should be relevant is the ability to repay, i.e the income of said government vs its expenses.... Since most of them are in deficit, normally they should not be able to borrow more (at best they should be able to refinance their existing debt to decrease payment).... Again people are normally granted mortgages based on their ability to repay the monthly installment (except of course in the case of subprimes and NINJAS, and we know where THAT led to)
 

tomar

Ad Honoris
Jan 2011
12,538
#43
4
So is the US debt "good" or "bad" because there is plenty of it

as for the public spending , it seems to be an exercise in political flying trapeze ,
maybe next year , this year budget will be passed but I'm not holding my breath
A lot of it is "bad"

Simple example is military spending which is around $700 bio, that the US cant really afford.....If US spend were around UK levels (proportionnally to GDP) it should be some $300 bio (still would be about 3 times more than China which is the second largest military budget)... or some $400 bio saved per year, which would net $4 Trillion over a 10 year period (or some 20% of the current debt)

Then the US spends another $200 bio+ on debt interest

Then medicare and health costs about $1 Trillion and social security and unemployement costs another $1.2 trillion

Science is only $40 bio

Current budget deficit is about $800 bio...... So military overspend + debt interest is already a big chunk of that.....