This page has been archived and commenting is disabled.
The World Wide Web Of Debt
Who owes what to whom?
Via BBC Business News:
USA: Although the US's overseas debt almost equates to its annual GDP, it is still regarded as a safe bet. However, its credit rating has been downgraded. Although Asia - primarily China and Japan - holds the majority of US debt, Europe has the second largest percentage. This means whatever happens in the eurozone will have a deep impact on the US banking system. Within Europe, the UK, Switzerland and France hold the largest amount of US debt, amounting to hundreds of billions of dollars.
UK: The UK has very large amounts of overseas debt, of which the biggest component is the banking industry. The high debt to GDP ratio is explained by the UK's active financial sector, where there is a great deal of capital movement. This level of overall external debt is generally not seen as a problem because the UK also holds high-value assets. Having said this, the UK economy remains in the doldrums and the country is highly exposed to Irish as well as Italian and Portuguese debt. The UK in turn owes hundreds of billions to Germany and Spain.
Germany: The biggest European economy owes France, Italy and the US most money. However, these economies also owe Germany billions in return. Regarding its relationship with the troubled eurozone countries, Germany is exposed to Greek, Irish and Portuguese, but mostly, Spanish debt. If any of these defaults, Germany will be hit. Its economy is slowing, mainly because of the problems plaguing its eurozone partners. And as Europe's industrial powerhouse, any problems in Germany mean more problems for the eurozone, but also for the wider international system.
Japan: The world's third-largest economy has the highest public debt level amongst developed economies. However, most of its debt is owed internally, so it is not seen as at risk of default. The global financial crisis, this year's earthquake and tsunami, a strong yen and Europe's debt crisis are clouding its current economic outlook. But the government has pledged to turn the country's annual budget deficit into a surplus by 2020.
France: Europe's second biggest economy owes the UK, the US and Germany the most money. However, like in Germany's case, these countries also owe France billions in return. France's problem is that it is greatly exposed to the eurozone's troubled debtors. Its banks hold large amounts of Greek, Italian and Spanish debt. This is causing market turbulence, especially against a backdrop of faltering French growth and low consumer spending.
Spain: Spain owes large amounts to Germany and France. However, its number one worry is bailed-out Portugal, which is indebted to it by billions of euros. As the country attempts to get its own debts under control, there are fears the country could be thrown back into recession after November's parliamentary elections. The bursting of a housing and construction boom in 2008 had plunged Spain's economy into a recession deeper than in many other European countries.
Portugal: Portugal, the third eurozone country to need a bail-out, is in deep recession. It is currently implementing a series of austerity measures as well as planning a series of privatisations to fix its shaky finances and reduce its debt burden. The country is highly indebted to Spain, and its banks are owed 7.5bn euros by Greece.
Italy: Italy has a large amount of debt, but it is a relatively wealthy country compared with Greece and Portugal. However, doubt about Italy's leadership and fears that its debt load could grow more quickly than the Italian economy's capacity to support it have left the markets jittery. France is most exposed to Italian debt.
Ireland: One of three eurozone countries to so far receive a bail-out, Ireland has introduced a series of tough austerity budgets. Its economy is now showing a modest recovery. After the boom years leading up to 2008, the country fell into recession as a result of the global credit squeeze, which ended the supply of cheap credit that had fuelled the unsustainable growth in its housing market. It shows a very high level of gross foreign debt to GDP because, although it is a small country, it has a large financial sector - including a big overseas presence. The UK is Ireland's biggest creditor.
Greece: Greece is heavily indebted to eurozone countries and is one of three eurozone countries to have received a bail-out. Although the Greek economy is small and direct damage of it defaulting on its debts might be absorbed by the eurozone, the big fear is "contagion" - or that a Greek default could trigger a financial catastrophe for other, much bigger economies, such as Italy.
Source: BBC, Bank for International Settlements, IMF, World Bank, UN Population Division
»
- 39040 reads
- Printer-friendly version
- Send to friend
- advertisements -
one big circle jerk
Musical Chairs, last one standing gets it up the ass.
It looks like an octopus.
More like a squid
Same fucking thing. It's like debating the euro vs the dollar. They are the same fucking thing.
whoever debts the most debts the best.
Over 250% debt and you go bankrupt.
you r out of the ball park; the meme is over 90% debt you go bankrupt.
Don't become a fiat worshipper. Stay conventional.
You can't have job creation in the USA because factories that produce consumer products were removed from the country.
The Money Math for Job Creation doesn't work due to Globalization and the Federal Reserve Corporation.
Globalization = American Wage Arbitrage = Lower Worker Pay
Federal Reserve Corporation = Private Company that Manufactures Paper Money and Sets its Value
P.S. I'm sorry I have to spell this out on a 6th grade level.
The UK and Japan are not low risk, and Spain is not medium risk. The information is useful but the evaluations are naively optimistic.
No where is low risk anymore
Wipe the slate clean.
The fiat has no REAL value, anyway.
Reset everyone to zero.
Repeat!
Define unsustainable: Over 90% debt and your children look more like your neighbors than they look like you.
Revenge Sex: At 250% your children look like your enemies.
Make up sex: the 2nd and 3rd wife.
Gold, bitchez!
You can't have job creation in the USA because the factories that produce consumer products were removed the country.
The Money Math doesn't work due to of Globalization and the Federal Reserve Corporation.
That's OK, we'll just invite all of our creditors in so that we can service them for free, with our service econ-o-mee.
.
.
Then I guess Ireland is the grand champion!
In this case all the participants are on the last chair, and it only has one leg, by design.
How's that Global Unity working out for us, bitchez?
Greece 2012 = Germany 1922:
too much debt, can't be paid
"Circle Jerk!"
"The Oligarchies favorite board game!"
"Buy one now!"
FED is authorized dealer all rights reserved
That US debt to the UK has to be recycled oil money and laundered drug profits. In either case, fuck 'em. Let them pound sand, or better yet, refer them to our account manager at AIG.
So, if we owe the UK $835Bill
and....if the UK owes us $ $578Bill
why don't we just shake on it and wipe out their debt and owe them the delta of $257Bill? (and we could do a few dozen of these based on the infographic)
Oh yah, I forgot....if we did that, that would eliminating $1.413TRILLION of debt (i.e. interest payments) to the banking industry/Central Banks etc. We can't have that.
How come they didn't do a circle for the country called "FED"
Hello China?
I love how Debt/GDP is only off by about 800% for every country, yet it still looks this bad...
If they showed the real numbers, it would break minds, or so I'd like to think.
Wait... people don't give a fuck even if they did show the real numbers.
I can't find China in any of these circles
Yeah, no shit....what's up w/ dat?
All their bond are belong to us!
China and Japan were both mentioned in the opening paragraph. Sure, the charts are mesmerizing and all, but reading helps too.
It's says China and Japan are the largest holders of US debt.....It then includes Japan on the chart, but leaves out China??
Why?
My point too. Perhaps it not only needs to be read, but comprehended by our critics.
Perhaps because China, while a large holder of US debt, is no longer a net buyer of US debt.
I was under the impression that the charts above are representative of net debt flows (purchases), not holdings.
Thank goodness none of these countries fudge their books, or we could really be shit outta luck.
I owe other sentient beings compassion. Is that in the chart?
By the way these pics would make excellent coins. The new Drachmas perhaps, or a nice Perth Mint issuance.
No risk of that.
Interesting, but I have questions. Who is likely to default first, and who is likely to collect the largest portions of what is owed them in the long run? The future is obviously no longer about growth, but rather what and how much can be extracted from debtors as resources become more scarce and less efficiently distributed.
I think the one that defaults first wins the most spoils.....that last one will have nothing to help them out...Greece for instance...they default...humanitarian aid will por into the country...blah blah blah...the last guy the food will all be gone..
Usually, the meanest loan sharks with the bigger guns collect the most.
....hence, our "safe haven" status.
It looks completely sustainable
Does anyone find it odd that debt to China is not on any of the super neat graphics? Its almost like they and their holdings are insignificant, or pehaps it made the charts to scary.
I surmise that these charts are best interpreted while under the influence of Peyote.
That's what the borrowers were on, when they signed those IOUs ...
Edward Tufte on Mescaline.
for S's and G's i'd love to see the end results if you cancelled out offsetting debt. I'm not saying i want to start that inflation fire, but it would be interesting to see the net result of this elephant walk
The last Greece chart (great charts by the way) shows why we are minutes away from yet another tranche of money being bestowed on Greece...France is falling fast and not paying Greece will have Germany all alone in the AAA camp by spring. I believe the countries use the highest rating of the three rating agencies so France still has one card to fall before their bonds have to be marked up. But by then, the EU will vote to throw the ratings agencies out which might actually make their forecasts unencumbered and more "real".
Can the BBC re-do those charts factoring in the debt that is held by a country's own Central Bank?!
It is just all mind boggling. How can this go on much longer?
Rule number seven, fights will go on as long as they have to....
http://vimeo.com/7929772
As I've mentioned in a previous thread.
We don't owe SHIT to these Globalist Criminals. Tick tock, tick tock. Get the rope out. They're time is running out and they know it. No where to run to, no where to hide.
If their heads don't roll, ours will. All it takes is a few meals to go bye-bye and Joe Average finally starts looking for answers... people to blame. Might be guaranteed just that when global supply chains unwind (and they will).
I agree. Fuck em.
What can the powers that be do if we collectively all said "we're not paying".
Economic collapse? It's about time.
The Spice must flow.
Bernake and the fed will ensure the debt for the US gets much higher. Their promoting more debt and fiscal irresponsibility.
They owe some of it to me bitchez.
The sovereign debt of Lmo is hereby cancelled.
Bitchezzzzz.
Wondering how much debt got re-hypothecated???
All the makings for a nuclear reaction....one seemingly small default can trigger a massive one....just as one bullet began WWI.
Is this can't convince people to own precious metals, I don't know what will.
Gold is the currency of kings, silver of gentlemen, barter is for peasants, and debt is the currency of slaves.
Men like us are far and few between.
Though the headline states "The World Wide Web of Debt" the article is somewhat lacking. Excepting China where are the BRIC nations ? A few European countries, Japan, China UK, and USA ? I was expecting a "world", excuse me.
If this doesn't convince people that all governments are stupid, I don't know what will.
the beast is on the gobble and all that matters is we're all headed for it's belly
http://youtu.be/ntmthFyaYzY
What exactly are these "high value assets" the UK is supposed to control? Windsor Castle? Status as a center for money laundering?
The Middletons like Anne Boleyn of old.
UK only advances when there is a WOMAN who runs the country; its their greatest contribution to human progress!
Although they were kicked out of the US. They never gave up their land rights(?) I'm just guessing.............
God I love being Irish.
- WSJ: REVIEW & OUTLOOK
- November 19, 2012, 7:24 p.m. ET
The Latest Taxpayer Housing Bust With the election over, we learn that the FHA is insolvent.Lets add a little more debt to the equation. And we pay these scum.
Bank of Idiotic Settlements. That's a whole lot of repudiation.
its nice to see that all the accounting is done in Euros; sign of the future times or swan song of dying age?
just keep giving money to people who can not pay it back
It all nets out to zero, right?
/sarc - just in case
Looks like solar eruptions. When does the planet-killer one hit?
This is like a never ending Monopoly game!
"Until you know who has lent what to whom, you know nothing whatever of politics, you know nothing whatever of history, you know nothing of international wrangles." -Ezra Pound
The countries with the biggest debts also have the biggest financial sectors.
Just look at the UK foreign debt per person compared to the others - wow!
The opening line says it all - US debt is the safest bet - meaning it will get paid back. And when the rush demand for US Dollars arrives to pay back this debt, the dollar will rise faster.
The US continues to push higher.
http://bullandbearmash.com/chart/us-dollar-falls-hard-as-bets-are-made-o...
And yes, Gold bulls won't agree - fair enough. But US based technology runs the planet unlike any empire in history. The US Dollar is a military back currency. Gold is a factor, but not the prime component in the value of the US Dollar.
Wow. For a minute there I thought there was a crisis. But when everyone owes everyone else doesn't it all cancel out? So let's just call it even and move on.
Makes Iceland look awfully clever, doesn't it?
Wow....!
5 letters sums it up.....Ponzi
and again no numbers on switzerland :(
France is long Italy, Greece, and Spain - nothing to see here - move along.