Public debt: GDP

Wookster

This graph is in today's Guardian:



Full article here:

http://www.guardian.co.uk/business/blog/2011/oct/17/europe-debt-hangover-alarm-bells

There are 6 countries in the Eurozone with national debt higher than the UK. Of those 6, 3 have been bailed out, 1 is in the sights of the bond vigilantes, 1 hasn't had a government for over a year and the other hasn't had a balanced budget for 27 years.

If that doesn't send a clear message that government spending must be controlled to the labour spend-a-holics, then I don't know what will.

sheffield_lad

Indeed, Imagine Mr (lets have more debt Balls), having control of no11 Noooooooooooooo

Link to our debt bomb below! Gulp!

http://www.debtbombshell.com/?utm_source=widget&utm_medium=embed&utm_campaign=dbw1

Pimperne1

Actually, bad as that looks, I thought we would be much worse than Germany (even accepting that they will be grow their way out of it and we won't). This graph shows us in a relatively good light (given the dire circumstances overall).

ILW

I may be wrong here, but is not GDP a sort of measure of the countries "turnover", with no indicator of a countries "profitability"?

If so comparing debt to GDP is not that indicative of anything.

Masomnia

Pimperne1 wrote: »

Actually, bad as that looks, I thought we would be much worse than Germany (even accepting that they will be grow their way out of it and we won't). This graph shows us in a relatively good light (given the dire circumstances overall).

This is the problem. A year ago we weren't as bad, now we're about level, and in a few years we will be much worse than Germany. :eek:

chewmylegoff

Masomnia wrote: »

This is the problem. A year ago we weren't as bad, now we're about level, and in a few years we will be much worse than Germany. :eek:

well, unless germany has to borrow loads of money to give to other countries to support the euro, and then they don't pay it back of course.

pqrdef

And clearly Spain is a model of fiscal responsibility compared to the UK and Germany.

MacMickster

The UK, alone of the countries shown, has control of both its own currency (including the ability to print more - devaluing both its currency and its debt) and of its own fiscal policies.

If anything, this graph merely illustrates that the debt to GDP ratio is pretty meaningless or else Spain would be the safe haven for investors.

Meanwhile, George Osborne is trying to find ways to to move to plan B using accountancy tricks to have us believe that it is still plan A.

Old_Slaphead

UK figures are worse than shown - PFI commitment has conveniently been shunted "off balance sheet"

StevieJ

Old_Slaphead wrote: »

UK figures are worse than shown - PFI commitment has conveniently been shunted "off balance sheet"

Another white elephant introduced by the Tories to privatise public services, you would have think they would have learnt their lesson :eek:

Old_Slaphead

StevieJ wrote: »

Another white elephant introduced by the Tories to privatise public services, you would have think they would have learnt their lesson :eek:

Maybe it was their idea but a certain Mr Brown embraced it with mucho gusto to sidetrack his 'golden rules'