BusinessDaily.eu – By Mikkel Egesberg
In this article we will look at the the numbers just released today about the EU members debt, and see how that compares with the US. We hear a lot about the socalled “Euro-crisis”, but less about the USA’s debt crisis, the so called “fiscal cliff”. Below I have gathered the numbers, and here they are:
The first column shows the different states, the next the State’s debt in 2011 and then 2012. After this the next column shows the change from 2011 to 2012 i percentage points, and the last column shows the state’s economy compared to EU total (EU-27).
As you can see Greece has the highest debt with 150,3% of GDP, but from the last column, you see that Greece’s economy only make up 1,6% of the EU total economy, for which reason it’s not a “big problem”. Also we see that the Greek debt as percentage of the GDP has fallen 8,5% points from 2011 to 2012. As number 2 we have Italy, which make up 12,1% of the EU economy and have a debt of 126,1% of it’s GDP. After this we have two small countries, Portugal and Ireland, and then we have the USA as country number five with most debt, and it’s economy is much larger then the 4 above, almost 95% of EU GDP.
The US has a debt of 104,8 % of GDP, and it has gone up by 6,1 percentage point over the year, a large change. Even though we hear a lot about the “Euro-debt-crisis”, we see that the Euro-area only has a debt of 90% of GDP, and the EU total average is only 84,9% (about 20 percentage points lower than the US). We also see that the Eurozone and EU total average have gone up with only 2,9% points and 3,5% points, compared to the 6,1% points for USA.
In short, the US debt crisis is worse, than what we see in the EU, and we can expect the US debt crisis to grow, as long as the US Congress just raises the US debt limit, as they have 13 times already since 2000. EU countries try to make savings and/or raise taxes, which cause civil unrest in e.g Greece, while the US so far has just raised it’s allowed debt limit and let the US Federal Reserve print the money it needs. Sooner or later the US will have to focus on it’s own problem, if it has not already jumped off the fiscal cliff, and is in free fall as we speak:
Do also read: Forget Europe, the US budget is out of control
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