Exclusive: The Intersection of the Global and U.S. Debt Crises and What They Foretell » Publications » Family Security Matters

Exclusive: The Intersection of the Global and U.S. Debt Crises and What They Foretell » Publications » Family Security Matters

Australian Broadcasting Corporation commentators Clark and Dawes did a great comedic explanation of the current debt crisis in Europe, incorporating factual debt numbers for some critical nations in the European Union. Their numbers pertaining to the actual debts were rather shocking, particularly when viewed through the prism of the United States Government.

The amounts owed by the nations of Greece ($367 Billion EUD), Italy ($1 Trillion EUD), Spain ($1 Trillion EUD) and Ireland ($865 Billion) were in fact mostly amounts owed to other EU member nations and their banks. They didn’t get to Portugal’s debt in this discussion. They certainly didn’t include the unfunded liabilities of their socialist worker programs, the real monsters in the debt soup, just like in the U.S.

They cited the nations with the biggest liability exposures to these borrower nations as being Germany, Great Britain, and France, none of which are solvent in their own stead. Indeed, each of these lending countries carries national debt that is a multiple of their GDP, with the greatest of these being Great Britain, with a debt load of 400 percent of its GDP, before its unfunded liabilities. The song sung repeatedly in this little ditty was: how were these insolvent lenders going to survive while insolvent borrowers ask for more money to bail them out when they can’t service the debt they already have? It is a formula for a perfect storm.