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| Europe |
| Germany's enormous hidden debt |
| 2011-09-30 |
| h/t Gates of Vienna "The Truth," leads Handelsblatt, giving short shrift to the alleged parsimony of the German state -- and the astronomical numbers support it. Officially, German debt in 2011 stands at 2,000 billion euros. But that's only half the truth, because the major portion of expenditure for pensioners, the sick and dependent persons is not included in the calculation. According to new figures, the real debt is 5,000 billion euros. If these figures stand, Germany is in debt to the tune of 185 percent of its gross domestic product and not 83 percent, as officially declared. By comparison, Greek debt should be 186 percent of GDP in 2012, and Italy's debt is currently at 120 percent. The critical threshold beyond which debt crushes growth is 90 percent. Since coming to power in 2005, Angela Merkel, "has created as much new debt as all the chancellors in the previous four decades together," writes the chief economist of the business daily. "These are 7,000 billion euros on a bad cheque that we have signed and our children and grandchildren will have to pay." I didn't know Germans had grandchildren |
| Posted by:g(r)omgoru |
| #8 "The Truth" > The Wrestler on TV'S RAW??? gut nuthin. The "GREAT GREAT-ER DEPRESSION"??? |
| Posted by: JosephMendiola 2011-09-30 21:17 |
| #7 That news is a lie. It includes future expenditures. As such is not comparable with Italian and whatever debt levels. |
| Posted by: Chomosing Hupimp6046 2011-09-30 18:03 |
| #6 I thought the USSR lost? Patient 0 died, but the virus kept going. |
| Posted by: Pappy 2011-09-30 16:06 |
| #5 But Eating the seed-corn is standard Marxist policy! I thought the USSR lost? |
| Posted by: Bright Pebbles 2011-09-30 13:23 |
| #4 For every debit there's a credit. To whom we must ask? At least here it seems like the government is borrowing from itself, and is thus both debtor and creditor - which is effectively printing money and thus confiscating the value of existing savings. Once savings have been devalued to nothingness, this economic tool will become useless. |
| Posted by: Glenmore 2011-09-30 12:52 |
| #3 For every debit there's a credit. To whom we must ask? And who actually benefited from the massive expansion of credit? (Apart from governments who would otherwise be unable to hide the damage their taxation => Cronies policies have wrought?). |
| Posted by: Bright Pebbles 2011-09-30 10:48 |
| #2 The entire world is in debt. Every country is being crushed under its weight. |
| Posted by: DarthVader 2011-09-30 09:11 |
| #1 At least the Germans are industrious. Perhaps they can grow their way out of it... |
| Posted by: American Delight 2011-09-30 09:08 |