It is little wonder that banks are reluctant to offer credit to the citizen, to businesses or to each other when bearing in mind the level of debt that currently exists. Official estimates of the American debt currently sit at $10.6 Trillion Dollars. A boutique investment analyst in Moscow considers the US debt to be nearer $11 Trillion dollars. However, two well known US investment banks are far less optimistic and unofficially estimate the debt level to be $26 Trillion Dollars, in effect 250% of US GDP.
In the UK, informed sources place UK debt levels nearer £2.5 trillion pounds. By the way, the UK’s GDP stands at about £1.5 trillion pounds.
What debt are we talking about? – Housing debt, credit card debt and debt ridden financial instruments, such as derivatives, all of which undermine the confidence of the market.
What value is better [...]