World Debt Crisis

There is rightly a lot of focus on the UK’s national budget deficit which is on course to be a record £178 billion in the current financial. This is after Greece passed it "austerity" budget and the Republic of Ireland passed its serve budget cuts to keep them within the European 13% GDP borrowing rule.

The UK debt is rising at an alarming rate too and all the parties appear to have differing plans to deal with it (or not), before any downgrading of the UK's credit rating. I’m not sure any political party really has the whole solution or are in fact telling the public the full facts on what they will really do to get the UK back on track.

The UK of course is not the only economy with a large deficit. I have also noticed that so many of the world’s economies are in trouble.

Is the world sinking under a growing national debt or can the economic recovery turn it around before the taxes put us all back into recession? Its certainly a fine line between keeping the deficit down and reducing capital spending (spending which maybe helping the economic recovery).

The above chart can be found here from www.visualeconomics.com.

A great source of comparison between countries can be found at the CIA public library here.

UPDATE: the Conservative blog has details that could be showing that the UK is now borrowing at a rate of 17% of GDP see here .