US total debt to GDP is beginning to worry a number of market commentators - even those previously convinced it wasn’t a problem. Most recently, Dennis Gartman of the Gartman Letter has turned jittery on the issue:
We have never been given to wailing and gnashing our teeth over the US’ growing debt, for during our nearly six decades of life and three and one half decades of trading in markets, we’ve seen the nation’s debt grow even as the quality of life and wealth of the country grew faster. But now, even we are becoming concerned; now even we see potential disaster looming; now even we are depressed… Now even we are considering that double hemlock!.
As can be seen in the chart below, the figure has certainly ballooned somewhat substantially of late.
But Americans shouldn’t feel too lonely. There’s at least one other G7 country that can rival the States in the debt to GDP rankings. Have you guess which one it is?
Some clues: Land of the Great British Krona, home to Team GB…
Yes - it’s the grand old United K.
Just take a look at this chart from the Spectator (HT UK Bubble).
Related links:
The true extent of Britain’s debt - The Spectator
Gordon Brown saves the world, now the banks - FT Alphaville
