United Nations of Debt: Visualizing $63 Trillion in Global Debt by Country

Jeff Desjardins, the Visual Capitalist posted a nice chart of global debt on his website on Friday. I added lines in blue to group the Eurozone countries for comparison purposes. Poland is not on the Euro, but rather the Zloty. Clean boundaries were visually difficult in a single shape.

US is the leader in global debt with 31.8% of the IMFs's estimated $63 trillion in total debt.

Debt Top Five

Charts from the Visual Capitalist .

On a Debt-to-GDP basis the US does not look so bad and China looks downright good. But that assumes you believe China's reported GDP and it also assumes you do not count unfunded liabilities in the US.

Mike "Mish" Shedlock

Comments
No. 1-19
WildBull
WildBull

The US doesn't have a taxing problem. It has a spending problem. If congress continues to make promises it can't keep, it is only a matter of time before we become another Venezuela.

WildBull
WildBull

Realist, my point is that high taxes hurt the middle class much more than the wealthy. First, consumption taxes are harder on lower income earners, as low and middle income earners spend a greater proportion of their income on necessities. Graduated income tax as the rates exist in the US is harder on the middle class than on the already wealthy. The limousine liberals beg for higher taxes, but that is self serving crap. (See post above) If the income tax rates are adjusted to make it also impossible for the already rich to save, what is the point of working hard and taking risks? Better to enjoy the beach. This is the problem with using taxation as a means to redistribute wealth. There is no way to do it that doesn't kill the goose that lays the golden eggs. Lower taxation helps everyone, but the bottom more than the top.

MorrisWR
MorrisWR

Increasing debt is no surprise in a debt based monetary system.

Realist
Realist

Hey Wildbull. I agree with your statement "income does not equal wealth". However, I don't know what to make of your statement "high taxes are good for the wealthy". First, you only seem to mention income taxes. But taxes can be leveed on investment income, capital, property, estates, etc. Second, define what you mean by "high taxes"; 50%, 70%, 90%? What's your number? In general, "high" taxes are rarely good for the person being taxed (wealthy or not). Finally, my post was merely about how the US government is struggling to implement tax reform, and how this relates to the discussion on US debt levels. My point was that in order to pay for tax cuts, the US debt would be going up. Later on, when debt payments become unmanageable, then the little guys trying to live on Social Security could get whacked with cuts to their Social Security.

TheAntiqueSage
TheAntiqueSage

Webej's post above is correct. This chart only includes sovereign debt at the national level. Private debt levels are far more important. I suspect that China's debt numbers would look far more outrageous if shadow banking liabilities and local government debts were accounted for.