Which country debt is nearly 1000% of its GDP?
It’s the UK, as per this excellent chart from Morgan Stanley.
A few notes here:
• This chart is looking at all kinds of debt, not just sovereign debt. The UK’s staggering debt-to-GDP ratio is largely due to the size of its financial sector.
• All financial sector debt is, to some extent, potentially government debt, since all governments end up having to rescue their financial sectors in the event of a crisis. That’s what brought down Iceland and Ireland.
• By no measure does the US look remarkable debt-wise — even household debt/GDP doesn’t look that bad. For that matter, Europe doesn’t look that bad either. Their problem is not debt, but fiscal/monetary structure.
[Excerpt Business Insider]