us household debt
Some info from an SCMP article.
- Household debt of the US has reached 100 per cent of country's annual GDP in 2007 = USD13.8 trillion.
- To get back to the historical mean level of 75 per cent, amount of USD2.5 trillion needs to be reduced.
- In case a third (USD1.1 trillion) is to be written off, banks and insurance companies do not have enough capital and they need to be nationalized.
- If the remaining portion (USD2.4 trillion, 17% of annual GDP) is to be repaid through future income, the government needs to incur equal amount of decicit to make up for it.
posted by Unknown @ 3:11 PM
3 Comments
3 Comments:
This is grim... I was reading that Japan is facing deflation, as China's productivity levels are in the positive. Lately the USD has been gaining back against the Yen...
National debt of Japan is now approx US$5 trillion. I thought it sucks a lot but if we think like national debt is just a form of national credit, maybe US is facing grimmer situation...
There are different theories regarding what will happen to the USD and I don't know which one will be the case. But from what I've read I feel it's a matter whether it will devalue gradually in the long run or there will be a hyper inflation in relatively a short term. Since HKD is pegged to USD, I've been thinking I should put my savings somewhere else.
Post a Comment
Subscribe to Post Comments [Atom]
<< Home