That’s the question. All countries are in debt, but how do you figure out, which ones are really in trouble, and which ones can continue to heap on some more?
I wonder what the “Texas Ratio” is for the USA?
With statistics:
They are useful hints, but also very distorted by their relation to the GDP. What other measures would you use?
Interesting question.
My bet would be finding how much of a country’s tax revenues goes into “debt servicing”. What’s the most a country can take before defaulting becomes a serious option? 5%? 10%? With tighter and tighter budgets due to rising expectations and neverending “stimulus packages” this should be interesting.
My bet would be finding how much of a country’s tax revenues goes into “debt servicing”. What’s the most a country can take before defaulting becomes a serious option? 5%? 10%? With tighter and tighter budgets due to rising expectations and neverending “stimulus packages” this should be interesting.
Those would be indeed interesting numbers to find, if anybody has them. Worldbank does not seem to offer them for some reason. 