understanding America's debt problem

Understanding America's Debt Problem

I had motion sickness watching this joker. This video received almost a quarter of a million downloads

uk external debt - 400 percent of GDP

UK external debt - 400 percent of GDP

In general, I don't like posting other people's charts. I prefer to do my own, thank you very much. However, there are charts that are so important that they need to be produced in their original format. A recent chart on the Spectator website is such a chart.

The Spectator asks what is the true level of UK external debt, both private and public. The answer is horrifying. Britain owes the rest of the world. It is not 40percent (the level of public sector debt) but 400 percent of GDP. Furthermore, it is the highest in the G7 by some margin.

So what is the plan? Gordon "I saved the world" Brown wants banks to lend more, while the governments runs up an 8 percent of GDP fiscal deficit next year.

Make no mistake, we are on the road to total ruin.

china economy

The People's Republic of China is the world's second largest economy after the United States. It is the world's fastest-growing major economy, with average growth rates of 10% for the past 30 years. China is also the largest exporter and second largest importer of goods in the world. China became the world's top manufacturer in 2011, surpassing the United States. The country's per capita GDP (PPP) is $7,518 (IMF, 93rd in the world) in 2010. The provinces in the coastal regions of China tend to be more industrialized, while regions in the hinterland are less developed. As China's economic importance has grown, so has attention to the structure and health of that economy.

Rank	2nd
Currency	Renminbi (RMB); Unit: Yuan (CNY)
Fixed exchange rates	USD = 6.54771648 RMB (March 7. 2011) [1]
Fiscal year	Calendar year 01 January to 31 December
Trade organisations	WTO, APEC, G-20 and others
Statistics
GDP	$5.88 trillion (nominal: 2nd; 2010) $10.08 trillion (PPP: 2nd; 2010)
GDP growth	10.46% (major economies: 1st; 2010)
GDP per capita	$4,283 (nominal: 95th; 2010) $7,518 (PPP: 93rd; 2010)
GDP by sector	industry (46.8%), services (43.6%), agriculture (9.6%) (2010 est.)
Inflation (CPI)	4.9% (January 2011)[2]
Gini index	41.5
Labour force	819.5 million (1st; 2009)
Labour force by occupation	agriculture (39.5%), industry (27.2%), services (33.2%) (2008)
Unemployment	4.2% (July 2010)[3]
Main industries	mining and ore processing, iron, steel, aluminum, and other metals, coal; machine building; armaments; textiles and apparel; petroleum; cement; chemicals; fertilizers; consumer products, including footwear, toys, and electronics; food processing; transportation equipment, including automobiles, rail cars and locomotives, ships, and aircraft; telecommunications equipment, commercial space launch vehicles, satellites
Ease of Doing Business Rank	79th[4] (2011)
External
Exports	US$1.506 trillion (2010)
Export goods	electrical and other machinery, including data processing equipment, apparel, textiles, iron and steel, optical and medical equipment
Main export partners	US 20.03%, Hong Kong 12.03%, Japan 8.32%, South Korea 4.55%, Germany 4.27% (2009)
Imports	US$1.307 trillion (2010)
Import goods	electrical and other machinery, oil and mineral fuels, optical and medical equipment, metal ores, plastics, organic chemicals
Main import partners	Japan 12.27%, Hong Kong 10.06%, South Korea 9.04%, US 7.66%, Taiwan 6.84%, Germany 5.54% (2009)
FDI stock	$100 billion (2010)
Gross external debt	$406.6 billion

brazil economy

The economy of Brazil is the world's seventh largest by nominal GDP and eighth largest by purchasing power parity. Brazil has moderately free markets and an inward-oriented economy. Its economy is the largest in Latin American nations and the second largest in the western hemisphere. Brazil is one of the fastest-growing major economies in the world with an average annual GDP growth rate of over 5 percent. In Brazilian reais, its GDP was estimated at R$ 3.143 trillion in 2009. The Brazilian economy has been predicted to become one of the five largest economies in the world in the decades to come.
Brazil is a member of diverse economic organizations, such as Mercosul, Unasul, G8+5, G20, WTO, and the Cairns Group. Its trade partners number in the hundreds, with 60 percent of exports mostly of manufactured or semimanufactured goods. Brazil's main trade partners in 2008 were: Mercosul and Latin America (25.9 percent of trade), EU (23.4 percent), Asia (18.9 percent), the United States (14.0 percent), and others (17.8 percent).^[According to the World Economic Forum, Brazil was the top country in upward evolution of competitiveness in 2009, gaining eight positions among other countries, overcoming Russia for the first time, and partially closing the competitiveness gap with India and China among the BRIC economies. Important steps taken since the 1990s toward fiscal sustainability, as well as measures taken to liberalize and open the economy, have significantly boosted the country’s competitiveness fundamentals, providing a better environment for private-sector development. The owner of a sophisticated technological sector, Brazil develops projects that range from submarines to aircrafts and is involved in space research: the country possesses a satellite launching center and was the only country in the Southern Hemisphere to integrate the team responsible for the construction of the International Space Station (ISS). It is also a pioneer in many fields, including ethanol production.
Brazil, together with Mexico, has been at the forefront of the Latin American multinationals phenomenon by which, thanks to superior technology and organization, local companies have successfully turned global. These multinationals have made this transition notably by investing massively abroad, in the region and beyond, and thus realizing an increasing portion of their revenues internationally.
Brazil is also a pioneer in the fields of deep water oil research from where 73 percent of its reserves are extracted. According to government statistics, Brazil was the first capitalist country to bring together the ten largest car assembly companies inside its national territory.
The annual Brasil Investment Summit takes place in São Paulo and is the largest gathering in Brazil of international investment experts covering opportunities in alternative vehicles, infrastructure, and advanced trading strategies

Rank	7th (nominal) / 8th (PPP)
Currency	Brazilian real (BRL, R$)
Fiscal year	Calendar year
Trade organisations	Unasul, WTO, Mercosul, G-20 and others
Statistics
GDP	$2.09 trillion (nominal) $2.17 trillion (PPP) [1]
GDP growth	7.5% (2010)[2]
GDP per capita	$10,471 (2010) (nominal; 55th)[1] $11,289 (2010) (PPP; 71st)[1]
GDP by sector	agriculture: 5.5% industry: 28.7% services: 65,8% (2007)[3]
Inflation (CPI)	4.44% (Aug 2010)[4]
Population below poverty line	15.5% (2009)[5]
Gini index	49.3 (June 2009)[6]
Labour force	103.6 million (2010 est.)
Labour force by occupation	agriculture: 20%, industry: 14% and services: 66% (2003 est.)
Unemployment	5.7% (November 2010)[7]
Main industries	airplanes, steel; iron ore, coal; machine building; armaments; textiles and apparel; petroleum; cement; chemicals; fertilizers; consumer products, including footwear, toys, and electronics; food processing; transportation equipment, including automobiles, rail cars and locomotives, ships, and aircraft; electronics; telecommunications equipment, satellites, real estate, brewing, tourism
Ease of Doing Business Rank	127th[8]
External
Exports	$201.9 billion (2010 est.)[9]
Export goods	transport equipment, machinery, steel, airplanes, paper, electric machinery, iron ore, soybeans, footwear, coffee, autos, automotive parts, machinery
Main export partners	China 15.3%, United States 9.6%, Argentina 9.2%, Netherlands 5.1%, Germany 4.0% (2010)
Imports	$187.7 billion (2010 est.)[10]
Import goods	machinery, electrical and transport equipment, chemical products, oil, automotive parts, electronics
Main import partners	United States 15.0%, China 14.1%, Argentina 7.9%, Germany 6.9%, Japan 3.8% (2010)
Gross external debt	$310.8 billion (31 December 2010 est.)
Public finances
Public debt	41.4% net debt of GDP (2010)[11]
Revenues	$354.8 billion
Expenses	$434.9 billion
Credit rating	BBB+ (Domestic) BBB- (Foreign) BBB+ (T&C Assessment) (Standard & Poor's)[12]
Foreign reserves	US$328.061 billion (April 2011)[13]
Main data source: CIA World Fact Book All values, unless otherwise stated, are in US dollars

GNI per capita:

  Brazil (8,070 $)

  Higher GNI per capita compared to Brazil

  Lower GNI per capita compared to Brazil

economy of unites states

The economy of the United States is the world's largest national economy. Its nominal GDP was estimated to be nearly $14.7 trillion in 2010, approximately a quarter of nominal global GDP. Its GDP at purchasing power parity was also the largest in the world, approximately a fifth of global GDP at purchasing power parity. The U.S. economy also maintains a very high level of output per capita. In 2009, it was estimated to have a per capita GDP (PPP) of $46,381, the 6th highest in the world. The U.S is the largest trading nation in the world. Its three largest trading partners as of 2010 are Canada, China and Mexico.

Historically, the U.S. economy has maintained a stable overall GDP growth rate, a low unemployment rate, and high levels of research and capital investment funded by both national and, because of decreasing saving rates, increasingly by foreign investors. It has been the world's largest national economy since the 1870s  and remains the world's largest manufacturer, representing 19% of the world's manufacturing output. In 2009, consumer spending, coupled with government health care spending constituted 70% of the American economy. About 30% of the entire world's millionaire population reside in the United States (in 2009). Furthermore, 34% of the world's billionaires are American (in 2011). The US is also home to the world's largest stock exchange, the New York Stock Exchange. It also boasts the world's largest gold reserves and the world's largest gold depository, the New York Federal Reserve Bank. The United States is also home to 139 of the world's 500 largest companies, which is almost twice that of any other country. A large contributor to the country's success has also been a very strong and stable currency. The US dollar holds about 60% of world reserves, as compared to its top competitor, the euro, which controls about 24%.
Since the 1960s, the United States economy absorbed savings from the rest of the world. The phenomenon is subject to discussion among economists. The US is by far the most heavily invested-into country in the world, with foreign investments made in the US measuring almost $2.4 trillion, which is more than twice that of any other country. The US is also by far the largest investor in the world, with US investments in foreign countries totaling over $3.3 trillion, which is almost twice that of any other country. Like other developed countries, the United States faces retiring baby boomers who have already begun withdrawing money from Social Security; however, the American population is young and growing when compared to Europe or Japan. The United States public debt is in excess of $13 trillion and continues to grow at a rate of about $5.48 billion each day by direct calculation between January 31, 2010 and August 31, 2010. Total public and private debt was $50.2 trillion at the end of the first quarter of 2010, or 3.5 times GDP. Domestic financial assets totaled $131 trillion and domestic financial liabilities totaled $106 trillion. Due in part to the amount of both public and private investment, the economy of the United States is regarded as a type of mixed economy.
The American labor market has attracted immigrants from all over the world and in 2009 ranked 16th in terms of net migration rate. The United States is ranked fourth, down from first in 2008-2009 due to the economic crisis, in the Global Competitiveness Report. The country is one of the world's largest and most influential financial markets, home to major stock and commodities exchanges like NASDAQ, NYSE, AMEX, CME, and PHLX. 

$14.772 trillion (2011)[1] (1st, nominal and PPP)
GDP growth	2.8% (2010)[1]
GDP per capita	$47,275 (2010)[2] (17th, nominal; 6th, PPP)
GDP by sector	agriculture: (1.2%), industry: (21.9%), services: (76.9%) (2009 est.)
Inflation (CPI)	2.1% (February 2011)[3]
Population below poverty line	14.3% (2009)[4]
Gini index	45 (List of countries)
Labor force	154.5 million (includes unemployed) (2009 est.)
Labor force by occupation	farming, forestry, and fishing: 0.7% manufacturing, extraction, transportation, and crafts: 20.3% managerial, professional, and technical: 37.3% sales and office: 24.2% other services: 17.6% note: figures exclude the unemployed (2009)
Unemployment	9.1% (May 2011)
Main industries	petroleum, steel, motor vehicles, aerospace, telecommunications, chemicals, creative industries, electronics, food processing, consumer goods, lumber, mining, defense
Ease of Doing Business Rank	5th[5]
External
Exports	$1.280 trillion f.o.b (2010)[1]
Export goods	agricultural products (soybeans, fruit, corn) 9.2%, industrial supplies (organic chemicals) 26.8%, capital goods (transistors, aircraft, motor vehicle parts, computers, telecommunications equipment) 49.0%, consumer goods (automobiles, medicines) 15.0% (2009)
Main export partners	Canada, 13.2%; Mexico, 8.3%; China, 4.3%; Japan, 3.3%. (2009)[6]
Imports	$1.948 trillion c.i.f. (2010)[1]
Import goods	agricultural products 4.9%, industrial supplies 32.9% (crude oil 8.2%), capital goods 30.4% (computers, telecommunications equipment, motor vehicle parts, office machines, electric power machinery), consumer goods 31.8% (automobiles, clothing, medicines, furniture, toys) (2009)
Main import partners	China, 15.4%; Canada, 11.6%; Mexico, 9.1%; Japan, 4.9%; Germany, 3.7%. (2009)[6]
FDI stock	$2.398 trillion (31 December 2009 est.)
Gross external debt	$14.39 trillion (30 Sept 2010)[7]
Public finances
Public debt	$14 trillion (Jan 2011)[8] 93% of GDP
Revenues	$2.162 trillion (2010)[9]
Expenses	$3.456 trillion (2010)[9]
Economic aid	ODA $19 billion, 0.2% of GDP (2004)[10]
Credit rating	Standa

Contents [hide]

GDP growth	2.8% (2010)[1]
GDP per capita	$47,275 (2010)[2] (17th, nominal; 6th, PPP)
GDP by sector	agriculture: (1.2%), industry: (21.9%), services: (76.9%) (2009 est.)
Inflation (CPI)	2.1% (February 2011)[3]
Population below poverty line	14.3% (2009)[4]
Gini index	45 (List of countries)
Labor force	154.5 million (includes unemployed) (2009 est.)
Labor force by occupation	farming, forestry, and fishing: 0.7% manufacturing, extraction, transportation, and crafts: 20.3% managerial, professional, and technical: 37.3% sales and office: 24.2% other services: 17.6% note: figures exclude the unemployed (2009)
Unemployment	9.1% (May 2011

 fact file

GDP: $14.772 trillion (2011)
GDP growth: 2.8% (2010)
GDP per capita: $48,000 (2010)
inflation: 2.1% (2011)
pop below poverty line: 14%
labour force: 155 million
unemployment:9.1%
exports:1.2 trillion
imports 1.9 trillion

economy of the UK

The economy of the United Kingdom is the sixth-largest national economy in the world measured by nominal GDP and seventh-largest measured by purchasing power parity (PPP), and the third-largest in Europe measured by nominal GDP (after Germany and France) and second-largest measured by PPP (after Germany). The UK's GDP per capita is the 20th highest in the world in nominal terms and the 17th highest measured by PPP. The British economy comprises (in descending order of size) the economies of England, Scotland, Wales and Northern Ireland. The UK is a member of the Commonwealth of Nations, the European Union, the G7, the G8, the G20, the International Monetary Fund, the Organisation for Economic Co-operation and Development, the World Bank, the World Trade Organisation and the United Nations.
In the 18th century the UK was the first country in the world to industrialise, and for much of the 19th century possessed a dominant role in the global economy. However, by the late 19th century, the Second Industrial Revolution in the United States and the German Empire presented an increasing challenge to Britain's role as the leader of the global economy. Despite victory, the costs of fighting both the first world war and the second world war further weakened the relative economic position of the UK, and by 1945 Britain had been superseded by the United States as the chief player in the global economy. However, the UK still maintains a significant role in the world economy. The UK is one of the world's most globalised countries. London is the world's largest financial centre alongside New York  and has the largest city GDP in Europe.  As of December 2010 the UK had the third-largest stock of both inward and outward foreign direct investment (in each case after the United States and France).The aerospace industry of the UK is the second- or third-largest national aerospace industry, depending upon the method of measurement. ^.The pharmaceutical industry plays an important role in the UK economy and the country has the third-highest share of global pharmaceutical R&D expenditures (after the United States and Japan).  The British economy is boosted by North Sea oil and gas reserves, valued at an estimated £250 billion in 2007. The UK is currently ranked fourth in the world (and first in Europe) in the World Bank's Ease of Doing Business Index.

^{The UK entered a recession in Q2 of 2008, according to the UK Office of National Statistics (ONS) and exited it in Q4 of 2009. The revised ONS figures of November 2009 showed that the UK had suffered six consecutive quarters of negative growth. As of the end of November 2009, the economy had shrunk by 4.9%, making the 2008-2009 recession the longest since records began. In December 2009, the Office of National Statistics revised figures for the third quarter of 2009 showed that the economy shrank by 0.2%, compared to a 0.6% fall the previous quarter.
On 23 January 2009, Government figures from the Office for National Statistics showed that the UK was officially in recession for the first time since 1991.  It entered a recession in the final quarter of 2008, accompanied by rising unemployment which increased from 5.2% in May 2008 to 7.6% in May 2009. The unemployment rate among 18 to 24-year-olds has risen from 11.9% to 17.3%. Though initially Britain lagged behind other major economies including Germany, France, Japan, and the US which all returned to growth in the second quarter of 2009, the country eventually returned to growth in the last quarter of 2009. On January 26, 2010, it was confirmed that the U.K. had left its recession, the last major economy in the world to do so  In the 3 months to February 2010 the U.K. economy grew yet again by 0.4%  In Q2 of 2010 the economy grew by 1.2% the fastest rate of growth in 9 years, in Q3 of 2010 figures released showed the UK economy grew by 0.8%; this was the fastest Q3 growth in 10 years.}
In 2008 the education, health and social work sector had a total gross value added of around £170.3 billion, of which around £145 billion was compensation to employees.  In 2008 the sector had a total gross capital formation of around £17.7 billion.
In 2008 health and social work had a gross value added of around £93.7 billion.  In the UK the majority of the heathcare sector consists of the state funded and operated National Health Service (NHS), which accounts for over 80% of all healthcare spending in the UK and has a workforce of around 1.5 million, making it the largest employer in Europe. The NHS operates independently in each of the four constituent countries of the UK. The NHS in England is by far the largest of the four parts and had a turnover of £92.5 billion in 2008.
In 2008 education had a gross value added of around £76.4 billion. In 2007/08 higher education institutions in the UK had a total income of £23.4 billion and employed a total of 169,995 staff. In 2007/08 there were 2,306,105 higher education students in the UK (1,922,180 in England, 210,180 in Scotland, 125,540 in Wales and 48,200 in Northern Ireland).

[edit] Financial and business services

The City of London is the world's largest financial centre alongside New York

This industry added gross value of £86,145 million to the UK economy in 2004.The UK's exports of financial and business services make a significant positive contribution towards the country's balance of payments.
London is a major centre for international business and commerce and is one of the three "command centres" of the global economy (alongside New York City and Tokyo). There are over 500 banks with offices in London, and it is the leading international centre for banking, insurance, Eurobonds, foreign exchange trading and energy futures. London's financial services industry is primarily based in the City of London and Canary Wharf. The City houses the London Stock Exchange, the London International Financial Futures and Options Exchange, the London Metal Exchange, Lloyds of London, and the Bank of England. Canary Wharf began development in the 1980s and is now home to major financial institutions such as Barclays Bank, Citigroup and HSBC, as well as the UK Financial Services Authority. London is also a major centre for other business and professional services, and four of the six largest law firms in the world are headquartered there. Several other major UK cities have large financial sectors and related services. Edinburgh has one of the large financial centres in Europe and is home to the headquarters of the Royal Bank of Scotland Group and Standard Life. Leeds is now the UK's largest centre for business and financial services outside London, and the largest centre for legal services in the UK after London.

GDP growth	1.7% (2010) 0.5% (2011 Q1)
GDP per capita	$32,798 (2009) (nom; 20th) $35,286 (2009) (PPP; 17th)
GDP by sector	agriculture: 0.9%; industry: 22.1%; services: 77.1% (2010 est.)
Inflation (CPI)	4.5% (April 2011)
Population below poverty line	14% with household income below 60% of UK median income
Gini index	0.36 (2008)
Labour force	31.45 million (2010 est.) (17th)
Labour force by occupation	agriculture: 1.4%; industry: 18.2%; services: 80.4% (2006 est.)
Unemployment	7.6% (June 2011) (unemployment falling at fastest rate since the year of 2000)
Average gross salary	4,108 € / 5,546 $, monthly (2006)
Average net salary	2,749 € / 3,712 $, monthly (2006

UK exports of services in 2005

It has been suggested that the UK initially lagged behind its European neighbours because the UK entered the 2008 recession later. However, German GDP fell 4.7% year on year compared to the UK's 5.1%, and Germany has now posted a second quarterly gain in GDP. Commentators suggest that the UK suffered a slightly longer recession than other large European countries, as a result of government policy dating back to the policies of the Thatcher government of 1979, in which UK governments have moved away from supporting manufacturing and focused on the financial sector. The OECD predicts that the UK will grow 1.6% in 2010. The unemployment rate recorded by the Labour Force Survey fell in the fourth quarter of 2009, the first of the big 3 economies in the EU to do so. Gross Domestic Product (GDP) decreased by a (second revision) figure of 0.2 per cent in the third quarter of 2009, after a decrease of 0.6 per cent in the second quarter, according to the Office for National Statistics (ONS). There was a 2.4% decline in the first quarter of 2009. The economy has now contracted 5.9% from its peak before the recession began, the BBC reports.
In October 2007, the International Monetary Fund (IMF) had forecast British GDP to grow by 3.1% in 2007 and 2.3% in 2008. However, GDP growth slowed to a fall of 0.1% in the April–June (second) quarter of 2008 (revised down from zero). In September 2008, the OECD forecast contraction for at least two quarters for the UK economy, possibly severe, placing its predicted performance last in the G7 of leading economies. Six quarters later the UK economy was still contracting, placing a question mark over OECD forecasting methods.
It has been argued that heavy government borrowing over the past cycle has led to a severe structural deficit, reminiscent of previous crises, which will inevitably exacerbate the situation and place the UK economy in an unfavourable position compared to its OECD partners as attempts are made to stimulate recovery, other OECD nations having allowed greater room for manoeuvre thanks to contrasting policies of relatively tighter fiscal control prior to the global downturn.
In May 2009 the European Commission (EC) stated: "The UK economy is now clearly experiencing one of its worst recessions in recent history." The EC expected GDP to decline 3.8pc in 2009 and projected that growth will remain negative for the first three quarters of 2009. It predicted two quarters of "virtual stagnation" in late 2009-early 2010, followed by a gradual return to "slight positive growth by late 2010".
The FTSE 100 and FTSE 250 rose to their highest levels in a year on the 9th of September 2009 with the FTSE 100 breaking through 5,000 and the FTSE 250 breaking through 9,000. On the 8th of September the National Institute of Economic and Social Research believed that the economy had grown by 0.2% in the three months to August, but was proved wrong. In its eyes the UK recession was officially over, although it did warn that "normal economic conditions" had not returned. On the same day, figures also showed UK manufacturing output rising at its fastest rate in 18 months in July. On the 15th of September 2009 the EU incorrectly predicted the UK is expected to grow by 0.2% between July and September, on the same day the governor of the Bank of England, Mervyn King said the UK GDP is now growing. Unemployment has recently fallen in Wales.
Many commentators in the UK were certain that the UK would leave recession officially in Q3, believing that all the signs showed that growth was extremely likely, although in fact government spending had been insufficient to rescue the economy from recession at that point. Figures in fact showed no growth in retail sales in September 2009, and a 2.5% decline in industrial output in August. The revised UK figures confirmed that the economy shrank in Q3 of 2009 by 0.2%, although government spending on cash for the car scrappage scheme helped. Yet this temporary lapse was followed by a solid 0.4% growth in the Q4. UK manufacturers' body, the EEF, appealed for more cash from the government: "Without an extension of support for business investment in the pre-Budget statement next month, it will be difficult to see where the momentum for growth will come from."
Moody's, an American credit rating organisation, gave the UK an AAA credit rating in September 2010, forecasting stable finances largely driven by governmental action. It also reported that the economy is flexible to grow in the future and that household debts and poor exports were large growth-reducing factors, as well as its financial sector.
The UK entered its worst recession since World War II in 2008. However the UK economy grew by 1.2 per cent in Q2 of 2010 and 0.8 per cent in Q3, the fastest consecutive growth in over 10 years, accelerating from the 0.4 per cent growth recorded in Q1 of 2010 and 0.4 per cent growth in Q4 of 2009. However the UK economy shrunk 0.5 per cent in Q4 of 2010 after the UK had its coldest December on record. The U.K. economy has grown 2.8% since the end of the recession; the UK economy has recovered twice as fast as expected