Debt and the institutional accumulation of it are wracking the world. Dubai’s case might just be a harbinger of a series of blowups that is soon to follow. Fact is, there are similar financial trouble spots across the globe right now. The ‘one-time wonderland in the desert’ that is now struggling to pay its bills, is not a lone and isolated case. There are some more debt shocks coming up, apart from that of the ‘boomtown with its palm-shaped islands and indoor ski slope’ that became a ‘potent symbol of hyperwealth.’
The financial meltdown in the US, UK, and Japan has been fodder to global news headlines, but the tragedy of the ill-effects of ‘unprecedented borrowing binge are starting to fall due’ across the globe.
Government debt is on the rise in Germany, said to be ‘the bastion of fiscal rectitude.’ The country’s outstanding debt is ‘expected to increase to the equivalent of 77 percent of the nation’s economic output next year, from 60 percent in 2002.’ Britain will have an even worse fate, with rise to more than 80 percent.
In Ireland, ‘public debt is expected to soar to 83 percent of gross domestic product next year, from just 25 percent in 2007.’ Latvia’s borrowings ‘will reach the equivalent of nearly half the economy next year, up from 9 percent a mere two years ago.’
In the same financial debt position are the Baltic states of Lithuania and Estonia. Bulgaria and Hungary will also soon have their accumulated debt blow up in their faces.
Via Yahoo! Finance
