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Posts Tagged ‘economic collapse’

Debt Destroying Dozens of Economies

Posted by feww on August 8, 2015

Total net debts owed by debtor nations rises by 30% since 2011—Report

International debt increased from $11.3 trillion in 2011 to $13.8 trillion in 2014, and it’s predicted that it will reach $14.7 trillion in 2015, resulting in an increase of $3.4 trillion (30%) in four years, according to a report published by Jubilee Debt Campaign.

The countries most at risk:

24 Countries already in debt crisis

  • Significant net debt (more than 30% of GDP), and
  • High current government external debt payments (more than 15% of government revenue).

There are 22 countries which currently have high government debt payments leading to large amounts of money leaving their country each year, along with an overall net debt with the rest of the world:

Armenia, Belize, Costa Rica, Croatia, Cyprus,  Dominican  Republic, El Salvador, Gambia, Greece, Grenada, Ireland,  Jamaica, Lebanon, Macedonia, Marshall Islands, Montenegro, Portugal, Spain, Sri Lanka, St Vincent and the Grenadines, Tunisia and Ukraine.  Also, two countries are in default or debt negotiation: Sudan and Zimbabwe.

Sudan and Zimbabwe do not have high government debt payments because they are both in default on much of their debt. Their overall debt is unpayable. Both are currently trying to enter debt relief initiatives, but have not been accepted yet by Western creditor countries.

14 Countries at high risk of government external debt crisis

  • Significant net debt (more than 30% of GDP)
  • High future government external debt payments (projected to exceed 15% of government revenue–or, where projections are not available, current government external debt already over 50% of GDP)
  • Significant current account deficit (more than 5% of GDP).

We estimate that 14 countries are rapidly heading towards new government debt crises, based on their large external debts, large and persistent current account deficits, and high projected future government debt payments (or, where predictions do not exist, large current government debt).

Bhutan, Cabo Verde, Dominica, Ethiopia, Ghana, Lao PDR, Mauritania, Mongolia, Mozambique, Samoa, Sao Tome and Principe, Senegal, Tanzania and Uganda.

29 Countries at risk of government external debt crisis

  • Significant net debt (more than 30% of GDP), or significant current account deficit (more than 5% of GDP), and
  • Significant future government debt payments (projected to exceed 10% of government revenue– or, where projections are not available, current government external debt already over 40% of GDP).

These countries have significant imbalances with the rest of the world, either through high net debt or high and persistent current account deficits, as well as significant projected future government debt payments.  For some, it may be that the private sector is an even larger source of risk than government debt:

Burkina Faso, Cambodia, Cameroon, Central African Republic, Chad, Cote d’Ivoire, Djibouti, Guyana, Haiti, Hungary, Italy, Kyrgyz Republic, Latvia, Lesotho, Liberia, Lithuania, Madagascar, Maldives, Mali, Niger, Poland, Rwanda, Serbia, Sierra Leone, Slovak Republic, St Lucia, Togo, Tonga and Zambia.

28 Countries at risk of private-sector debt crisis

  • Significant net debt (over 30 % of GDP), and
  • Significant current account deficit (over 5% of GDP).

Debt owed by the private sector, rather than a government, can precipitate debt crises. This can happen either when lending that an economy has become dependent on suddenly falls, when repayment burdens on private sector debt remove significant resources from the country, and/or when the private sector crashes and has to be bailed out by the government. Those countries are:

Albania, Australia, Belarus, Benin, Bosnia, Brazil, Burundi, Colombia, Fiji, Georgia, Guinea, Honduras, Indonesia, Jordan, Malawi, Moldova, Morocco, New Zealand, Nicaragua, Panama, Papua New Guinea, Peru, Seychelles, Solomon Islands, Tajikistan, Turkey, United Kingdom and Vanuatu.

Full report posted at: “The new debt trap: How the response to the last global financial crisis has laid the ground for the next”

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Japan’s Wet Dreams of Re-Militarization Lead to GDP Collapse

Posted by feww on August 14, 2014

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SCENARIOS 717, 444, 300, 222, 047, 031, 04, 02

None has harmed Japan more than its outgoing ‘American’ PM, Shinzo Abe (with the exception of the dead emperor)

 To pay for re-militarization and a major armament campaign Japan’s ‘American’ PM, Shinzo Abe, raised the consumption tax from 5 to 8 percent in April.

Abe’s handlers have instructed him to buy even more arms next year, thus he plans an additional tax hike of 2 percent in October 2015.

“Gross domestic product plunged 6.8% on an annualized basis in the second quarter this year, the biggest fall since the March 2011 earthquake and tsunami,” said a report.

The average consumer simply couldn’t afford to the additional 3% tax hike.

In reality, most food items have seen a price hike of 8% since April. The greedy Japanese supermarkets have added 8% to the price of their goods, instead of the actual tax rise of 3%,  pocketing the difference in the confusion. They don’t consider the average Japanese consumer smart enough to know the difference.

Japan GDP Collapse -WSJ

Wages dropped 1.8% while the sales tax rose 3% leading to a 5.2% QoQ collapse—the highest on record—in Consumer Spending during the second quarter, thanks to Abenomics.

Abe Makes a Mockery of The Article 9 of the Japanese Constitution

The Article 9 of the Japanese Constitution (日本国憲法第9条 Nihonkokukenpō dai 9-jō?) is a clause in the National Constitution of Japan that prohibits an act of war by the state. The Constitution came into effect on May 3, 1947, immediately following World War II. In its text, the state formally renounces war as a sovereign right and bans settlement of international disputes through the use of force. The article also states that, to accomplish these aims, armed forces with war potential will not be maintained, although Japan maintains de facto armed forces, referred to as the Japan Self-Defense Forces.

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