Singapore Total Debt: $1300310000000
Singapore was founded in 1819 by Stamford Raffles as an east India Company trading post. when the company went into decline, the British Raj was established, as the islands became a part of the British Straits Settlements in 1826, and were ceded to Britain. Singapore was previously occupied by Japan during World War II. In 1963, the country gained its independence from Britain and federated with the territories which once were under the control of Britain to form what is now known as Malaysia. The federation separated a few scant years later because of differences in ideology and in 1965, Singapore became a sovereign nation. The country quickly developed under the umbrella of an Asian Tiger economy that was based upon its external trade and its workforce. It is a global commerce, transport and finance hub and has earned the distinctions of being the city with the best investment potential, the most technology ready nation and the top city to hold international meetings in the world. They rank third in being the largest foreign exchange market, the largest trading and oil refining center and largest financial center. In addition, Singapore ranks second for most competitive country and it is known to be a tax haven.
China Total Debt: $1437800000000
China underwent a series of economic reforms in 1978, and has since become among the fastest growing, ranking as second in largest economy in the world in 2016 as rated by GDP. It possesses the largest by the purchasing power parity, and maintains the position of being the largest exporter in the world.
United Kingdom Total Debt: $7499400000000
The United Kingdom is ranked as having the fifth largest economy in the world by nominal GDP. It is the ninth largest by purchasing power parity. It is a developed country that has a high-income economy with a very high ranking in the Human Development Index. For this category, it comes in as number sixteen. The United Kingdom is unique in tht it is the first country in the world to become industrialized. It was the leading power of the 19th century and into the early 20th century. It is still a great power today and its military, economic, cultural, political and scientific influence are shown throughout the world. It is a permanent member of the United Nations Security Council. It is one of the leading members of the EU and the European economic Community until recently, when the national referendum regarding the UKs membership in the EU was passed with the agreement to leave the Union. The UK is currently negotiating heir exit from the EU. The country is also a member of the North American Treaty Organization, the Group of 20, the Commonwealth of Nations, the G7 finance ministers, the Council of Europe, the G7 forum, the Organization for Economic Cooperation and Development, the G20 and the World Trade Organization.
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What Is The National Debt
The national debt is the debt that the federal government holds – this includes public debt, federal trust funds, and various government accounts. In simpler terms, the national debt includes both what the government owes others and owes itself. This is the total amount of deficit that the government has accumulated over the years.
The national debt today stands at more than $30.2 trillion. Here are some facts to give you an idea of how big this number really is:
- With $23.8 trillion held by the public, the government could give $71,000 per U.S. citizen.
- From 2000 to 2019, the federal debt increased 297%.
- $23.8 trillion is about the size of the economies of China, Japan, and Germany combined – the three largest economies in the world after the united States.
- $23.8 trillion is enough to cover a four year college degree for every American high school graduate for the next 57 years.
When Is Debt A Problem
There are at least four separate consequences of rising debt that can adversely affect the current and subsequent performance of an economy. These include transfers, financial distress, bezzle , and additional spillover adjustment costs termed hysteresis.
Debt is a problem when it sets off one or more of these four reactions, which in turn causes economic growth to slow. Each of these mechanisms works in different ways, and while the last one is largely self-explanatory, it is useful to consider the other three ways in greater detail.
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How Is Government Deficit Different From Government Debt
Government debt is a figure that represents the money owed by a national government. However, when a government spends more than its revenue in a year, it runs a budget deficit that fiscal year. It has to fill the funding gap with debt.
Politicians tend to attract votes by promising large sections of the population more payments from the government than they pay in through tax.
They dont want to scare off those people who pay in more than they take out, and so they try to avoid increasing tax levels.
National Debt Vs Budget Deficits
Before addressing how the national debt impacts people, it is important to understand the difference between the federal government’s annual budget deficit, and the country’s national debt. Simply explained, the federal government generates a budget deficit whenever it spends more money than it brings in through income-generating activities, such as taxes.
To operate in this manner, the Treasury Department has to issue treasury bills, treasury notes, and treasury bonds to make up the difference. By issuing these types of securities, the federal government can acquire the cash it needs to provide governmental services. The national debt is simply the net accumulation of the federal government’s annual budget deficits.
What The National Debt Means To You
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Norway Total Debt: $623223000000
Norway is the country that has the twentieth largest debt in the world. This nation features a market economy combined with a Nordic welfare model that includes universal health care as well as a social security system that is considered to be comprehensive. The extensive reserves of seafood, lumber, minerals, natural gas, fresh water, hydropower and petroleum are the products which are exported, with petroleum accounting for roughly 25% of the countrys gross domestic product. Norway is the largest producer of natural gas and oil in the world with the exception of middle eastern countries.
Relationship With Alameda Research
When looking at FTXs financials in isolation, its impossible to understand how one of cryptos largest exchanges ended up with such a lopsided and illiquid balance sheet. Many of the still unfolding details lie in the exchanges relationship with SBFs previous venture that he founded, trading firm Alameda Research.
Founded by SBF in 2017, Alameda Research primarily operated as a delta-neutral trading firm. In the summer of 2021, SBF stepped down from Alameda Research to focus on FTX, however his influence and connection with the firm was still deeply ingrained.
A report from the Wall Street Journal cites how Alameda was able to amass crypto tokens ahead of their announced public FTX listings, which were often catalysts in price surges. Alongside this, a Reuters story has revealed how SBF secretly moved $10 billion in funds to Alameda, using a bookkeeping back door to avoid internal scrutiny at FTX.
While SBF responded to the Reuters story by saying they had confusing internal labeling and misread it, there are few doubts that this murky relationship between Alameda Research and FTX was a fatal one for the former billionaires empire.
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List Of Countries By External Debt
This is a list of countries by external debt, it is the total public and private debt owed to nonresidents repayable in internationally accepted currencies, goods or services, where the public debt is the money or credit owed by any level of government, from central to local, and the private debt the money or credit owed by private households or private corporations based on the country under consideration.
For informational purposes, several non-sovereign entities are also included in this list.
Note that while a country may have a relatively large external debt it could actually be a “net international creditor” if its external debt is less than the total of external debt of other countries held by it.
Ftxs Liabilities And Largely Illiquid Assets
In the final days before declaring bankruptcy, FTX CEO Sam Bankman-Fried attempted a final fundraising in order restore stability while billions in user funds were being withdrawn from his exchange.
The balance sheet he sent around to prospective investors was leaked by the Financial Times, and reveals the exchange had nearly $9 billion in liabilities while only having just over $1 billion in liquid assets. Alongside the liquid assets were $5.4 billion in assets labeled as less liquid and $3.2 billion labeled as illiquid.
When examining the assets listed, FTXs accounting appears to be poorly done at best, and fraudulently deceptive at worst.
Of those less liquid assets, many of the largest sums were in assets like FTXs own exchange token and cryptocurrencies of the Solana ecosystem, which were heavily supported by FTX and Sam Bankman-Fried. On top of this, for many of these coins the liquidity simply wouldnt have been there if FTX had attempted to redeem these cryptocurrencies for U.S. dollars or stablecoin equivalents.
While the liquid and less liquid assets on the balance sheet amounted to $6.3 billion , many of these less liquid assets may as well have been completely illiquid.
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Spain Total Debt: $2036560000000
Spain is a constitutional monarchy as well as a parliamentary democracy. Felipe VI is the current King of Spain who inherited the throne in 2013 when his father abdicated. The nation is a major developed country and a middle power that is ranked as being number fourteen for the largest economy by nominal GDP, and sixteenth in purchasing power parity. Spain is a member of the European Union the United Nations the North Atlantic Treaty Organization the Schengen Area, the Organization for Economic Cooperation and Development, the World Trade Organization the Council of Europe the Eurozone the Organization of Ibero-American States, and several other international organizations. Although not currently a member, Spain is permanently invited to attend the annual G20 summits.
Government Revenue And Expenditure
The importance of the general government sector in the economy may be measured in terms of total general government revenue and expenditure as a percentage of GDP. In the EU, total general government revenue in 2021 amounted to 46.8 % of GDP , and expenditure amounted to 51.5 % of GDP . In the euro area, total general government expenditure amounted to 52.3 % of GDP in 2021 and total revenue amounted to 47.2 % of GDP see Figure 3.
Despite the decreases in 2021 of total expenditure as a percentage of GDP in both the EU and euro area, the levels remain above the long-term trends as a result of the expenditure measures put in place to combat the economic and social impact of the COVID-19 containment measures that started in 2020 and continued in 2021. In the period between 2012 and 2019, total expenditure as a percentage of GDP followed a decreasing trend in the EU and in the euro area. In 2020, the ratio increased +6.3 percentage points in the EU and +6.5 percentage points in the euro area compared with the previous year. In 2021, the reduction of the ratios by -1.4 percentage points in the EU and -1.1 percentage points in the euro area is less pronounced than the increases observed in the previous year.
Net social contributions had the highest share of total revenue in 2021 in Czechia , Slovakia , Slovenia and Germany . The lowest shares of total revenue were recorded in Denmark and Sweden as well as in Iceland .
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How We Gather National Debt Data
Most of our data is directly obtained from official government agencies and central banks. When this is not possible, we use data from:
This raw data is then processed through our algorithms. Among other variables, these algorithms consider the average 10-year interest rate paid on the debt to calculate the current debt amount at the time you are viewing the debt clock.
We update our exchange rates using data from the European Central Bank.
What The National Debt Means To You
The national debt level has been a significant subject of controversy for U.S. domestic policy. Given the amount of fiscal stimulus pumped into the U.S. economy over the past couple of years, it is easy to understand why many people are starting to pay close attention to this issue. Unfortunately, the manner in which the debt level is conveyed to the general public is usually very obscure. Couple this problem with the fact that many people do not understand how the national debt level affects their daily lives, and you have a centerpiece for discussion.
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National Covid Debts: Climate Change Imperils Countries Ability To Repay
Arjuna Dibley is a graduate fellow at the Steyer-Taylor Center for Energy Policy and Finance, Stanford Law School, Stanford University, California, USA and a researcher at the Oxford Sustainable Law Programme, University of Oxford, UK.
You can also search for this author in PubMed
Thom Wetzer is associate professor of law and finance at the Faculty of Law and director of the Oxford Sustainable Law Programme, University of Oxford, UK.
The effects of Hurricane Maria in Dominica in 2017 caused millions of dollars worth of damage to the countrys economy.Credit: Alejandro Cegarra/Bloomberg via Getty
Most governments astronomical borrowing during the current pandemic pays scant attention to the effects that climate change could have on their ability to repay the debt. Here we present an analysis of countries sovereign debt issued in 2020, showing that the vast majority of nations did not disclose the ways in which global warming might alter their credit-worthiness.
This is concerning. Even the anticipation of a climate shock might cause a debt crisis. If financial markets misprice the current risk, an event in one country could awaken investors sensitivity, triggering a synchronized revaluation of sovereign debt everywhere.
Debt By Year Compared To Nominal Gdp And Events
In the table below, the national debt is compared to GDP and influential events since 1929. The debt and GDP are given as of the end of the fourth quarter in each year to coincide with the end of the fiscal year. That’s the best way to accurately determine how spending in each fiscal year contributes to the debt and compare it to economic growth.
From 1947-1976, debt and GDP are given at the end of the second quarter since, during that time, the fiscal year ended on June 30. For years 1929 through 1946, debt is reported at the end of the second quarter, while GDP is reported annually, since quarterly figures are not available.
At the end of the fourth quarter in 2021, the national debt was about $29.6 trillion. Based on the fourth-quarter GDP of $23.9 trillion, the debt-to-GDP ratio was about 124%.
|End of Fiscal Year|
|COVID-19 and American Rescue Plan Act|
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Debt Can Create Bezzle
The third of the economic problems associated with rising debt is that it can encourage and accommodate a rise in fictitious wealth or bezzle. This is often the most damaging consequence of rising debt because this fictitious wealth creates distortions in economic behavior both as it is created and, much more importantly, as it is destroyed. When this fictitious wealth is eventually destroyed, the process can occur either quickly, in the form of a financial crisis, or slowly in the form of lost decades of stagnation and low growth.
There are two main ways in which the impact of fictitious wealth can affect economic activity, and although the link between rising debt and the creation of fictitious wealth isnt always causal, even when it isnt they are usually both symptoms of the same set of underlying monetary distortions.
Second, rising debt in certain economies can also be the result of formal or informal pressure on banks to lend into nonproductive investment that, because of soft budget constraints, isnt written down for many years. When that happens, expenditures that should be expensed are in fact capitalized, causing income-statement expenses to be understated and balance-sheet assets to be overstated, so that both net income and wealth are artificially boosted to higher levels than they otherwise would have been if only productive activity were recorded.
The Effect of Nonproductive Investment on the Lending Banks
Duck Soup Economics
Why Does Larger National Debt Attract Bond Buyer
Having a large national debt doesnt always discourage buyers of bonds. For example, the United States has a debt to GDP ratio of 108% and a lot of people want to buy US Treasury bonds.
You can see this data summary of US Local & State Government Debt for more information.
Some countries, such as the USA are always considered a good place to invest, and the government bonds of those countries are always in high demand.
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Examples Of Capital Expenditure
Examples of infrastructure spending that improve an economy are:
- The development of transport infrastructure, such as motorways and railways
- Investment in universities to create more educational institutions or crate centers of excellence from existing establishments.
- Improvements in communication infrastructure, such as a fibre optic backbone to expand the nations internet bandwidth availability and speed.
If you are thinking of investing in a countrys economy, or if you are considering moving there, researching the national debt of that place and how the government spends money may be insightful.
A countrys national debt is one of many economic indicators that interplay to create a judgment on a countrys prospects for success.