Source Article: America: The Land of Debt
Traders and the media are focused on the debt distress in Spain, as the country is hindered by a national debt of around 712 billion euros, or about US$892 billion, which breaks down to US$19,391 per citizen. This is why Spain is seriously concerned about the 10-year bond yield at close to seven percent. Paying these high financing costs, trying to cut its national debt and manage its budget will not be easy. The reality is that the eurozone and Europe are in a serious financial crisis.
But while the Spanish situation and the economies of Italy, Greece, Portugal, and Ireland look bad, somehow everyone seems to be ignoring the $15.9 trillion of national debt in the U.S. That’s $50,863 per citizen, or more than double that of Spain. Worst of all, the national debt is mounting at an alarming rate, and it’s not going away anytime soon. The only plus here is the country’s low bond yields. If the U.S. had to pay out the high yields Spain does, the U.S. would be broke and facing a credit crisis.
This national debt will take decades to pay off or even get it to more manageable levels.
Something drastic needs to be done regarding the national debt or the country’s financial strength will go down the toilet!
Never mind talking about the European debt issues; just look in our own backyard where there’s plenty of work to be done.