Will the United States Default on Its Debt?
"I suggested that the unthinkable had become thinkable: some advanced society—say, the United States, Spain, Italy, Japan, or Great Britain—might someday default on its government debt.
It wouldn't pay its creditors all they were owed or wouldn't pay them on time.
Just a few days later, and completely coincidentally, the International Monetary Fund (IMF) issued a report that, without saying so, added credence to this unsettling hypothesis"
The table below shows government debt in relation to a country's gross domestic product (GDP), which is the output of its economy. The first column shows the debt-to-GDP ratio for 2007, the last pre-crisis year; the second column gives the IMF's projection for 2014. (Debt reflects government borrowing to cover annual budget deficits.) By this standard measure, many rapidly growing emerging-market countries are less indebted than wealthier nations.
General Government Debt to GDP
COUNTRY 2007 2014
BRAZIL 67% 59%
CANADA 64% 69%
CHINA 20% 20%
FRANCE 64% 96%
GERMANY 63% 89%
INDIA 81% 79%
ITALY 104% 129%
JAPAN 188% 246%
SOUTH KOREA 30% 35%
MEXICO 38% 44%
UNITED KINGDOM 44% 98%
UNITED STATES 62% 108%
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