GundersonGroup (97.35)

GundersonGroup's CAPS Blog

US debt servicing ability

Recs

0

Report

February 02, 2012 – Comments (2) | RELATED TICKERS: IEF , TMF , TLT

As we have seen with the PIIGS the ability of a country to service its debt load is dependent on its Debt to GDP, Core Employment Rate & Population Leverage. As most American's already know we have breached 100% Debt to GDP. Below is the trend of the other two key components of sovereign default. A higher leverage ratio is negative, a lower employment rate is negative.

2 Comments – Post Your Own

#1) On February 02, 2012 at 7:57 PM, GundersonGroup (97.35) wrote:

Updated US chart with December 2011 BLS figures. The US has joined three other countries in passing the 250% default line. Those three countries are Greece, Ireland & Italy. Countries right behind the US are Hungary, Malta, Portugal & Spain.