Thursday, April 08, 2010

This should scare us straight

This chart shows the rate of interest payments relative to projected GDP for major Western nations for the next 30 years. While Greece is facing a crisis today, the people in the know - like you my loyal readers - should be really worried about the countries in the chart on the right -- the UK and the USA. Interest costs representing over 20% of our GDP? Imagine if your annual interest costs in your house (mortgage, credit card or car financing) totaled 20% of your gross income -- how long would you be able to keep your head above water?



Cheers!

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