The Rich World Debt
Around the financial crisis the world went crazy in borrowing money from the private sector and the public organisations. International money borrowing became also particularly famous among countries that struggled to maintain good economic development in times of recession. But this led to a quite bad result now, after the recession is going away. Seems like despite all the efforts by governments and business owners, the ’red ink'around the globe, indicating the countries with severe debts has grown significantly.
It seems like the countries that were hit by the economic crisis and were left alone to cope with difficulties (like the regions in Eastern Europe where even the cheap cookers were hardly sold during the crisis) somehow managed not to increase their national debt. On the other hand, strong states like the UK and France borrowed billions. UK is currently the largest debt owner in the North of Europe and this is understandable – the financial crisis came and went away and we hardly felt it the way Eastern Europeans felt it but at what cost?
During the crisis the UK government made some extremely ’good'deals with international organisations and business plus some additional money borrowing from the Commonwealth. The government aimed to reduce the consequences from the crisis by inputing fresh capital and international finances in the country with the main goal of preserving steady economic development. This somehow worked and the UK citizens remained partially effected by the recession but in future the UK taxpayer would have to think about his state contributions – they might significantly increase.
Same problem remains in France and Germany where the governments and the private businesses borrowed a lot and still somehow that seems to be less than the UK. The British potential of conducting politics might have misled them this time and the taxpayers are the ones that would have to judge that in future.
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