When countries go broke

When countries go broke. (FULL ARTICLE)

It’s become almost cliche these days to point out how many governments are broke beyond belief.

In Japan, where the country’s debt level already exceeds 200% of GDP, the government has to finance 46% of its budget by issuing more debt.

In the United States, the governments add a trillion dollars each year to the already unsustainable debt, and fails to collect enough tax revenue to cover mandatory entitlement spending and interest payments on the debt.

The theater playing out in the US right now is irrelevant. America’s debt challenge is not a political problem. It’s an arithmetic problem. Same in Japan and most of Europe.

However, most of these ‘rich’ western nations aren’t doing anything about it. It’s business as usual, and their debts are only getting bigger.

Poorer countries don’t have this luxury of kicking the can down the road and delaying the inevitable. They must face their financial reckoning now….

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