Copyrighted Image? DMCA | The global economy is facing 'a slow-motion train wreck' with Greece only the first nation to be hit, according to Australia's Reserve Bank director Warwick McKibbin. Dozens of European countries now have gross government debts on track to exceed 60 per cent of GDP. Japan is forecast to be 200 per cent of GDP, the US is forecast to be over 100 per cent of GDP. At zero interest rates that can be sustained, but at 5 per cent interest rates countries have to put aside 5 per cent of their GDP every year just to service the debt. That is not sustainable. |
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At www.stuff.co.nz
At www.stuff.co.nz
