"May you live in interesting times", as ancient chinese would often say to their enemies. The first decade of twenty first century would definitely give any other decade a run for it's money. We indeed are living in interesting times if the recent news events and financial debacles are anything to go by. The housing bubble of US disintegrated into a rotten corpse of financial greed and misdeeds and left a turmoil in its wake. Just as there was some semblance of calm returning another storm can be seen brewing on the horizon- the storm of sovereign debt. It started with Greece ( Spain, Hungry, Italy in line) and is in the process of undermining the very essence of European Union. A large number of EU banks are exposed to this debacle, and the fact that only Germany is currently in good position economically, obviously undermine the confidence in Euro. The sad fact is that even dollar is not doing too good. And UK is also caught up in it's own problem.
David Cameron, the British PM, told an audience that the "overall scale of the problem is even worse than we thought" and that "The decisions we make will affect every single person in our country. And the effects of those decisions will stay with us for years, perhaps decades, to come,". Not a too optimistic outlook. “[Y]ou can’t smell the sulfur in the air right now and not think we might be on the threshold of an age of rage,” observed British historian Simon Schama recently . The developed world is currently facing a “tinderbox moment,” he added further. Some European countries have seen the incidence of riots over the financial tightening approach adopted by the governments.
Interesting times indeed! And to add to it the sinking of S Korean ship by DPRK, and an armed attack on relief flotilla by Israel. But I am wandering....
Here is the list of top 20 debtor countries. It is just compiled by me from the CNBC page (http://www.cnbc.com/id/30308959/The_World_s_Biggest_Debtor_Nations?slide=1) :
20. US - External debt (as % of GDP): 96.5%
Gross external debt: $13.77 trillion (2009 Q3)
2009 GDP (est): $14.26 trillion
19. Hungary - External debt (as % of GDP): 121.9%
Gross external debt: $225.56 billion (2009 Q2)
2009 GDP (est): $184.9 billion
18. Australia - External debt (as % of GDP): 124.3%
Gross external debt: $1.025 trillion (2009 Q2)
2009 GDP (est): $824.3 billion
17. Italy - External debt (as % of GDP): 147.4%
Gross external debt: $2.594 trillion (2009 Q3)
2009 GDP (est): $1.76 trillion
16. Greece - External debt (as % of GDP): 170.5%
Gross external debt: $581.68 billion
2009 GDP (est): $341 billion
15. Germany - External debt (as % of GDP): 182.5%
Gross external debt: $5.13 trillion
2009 GDP (est): $2.81 trillion
14. Spain - External debt (as % of GDP): 186.1%
Gross external debt: $2.55 trillion (2009 Q3)
2009 GDP (est): $1.37 trillion
13. Norway - External debt (as % of GDP): 202.6%
Gross external debt: $553.4 billion
2009 GDP (est): $273.1 billion
12. Finland - External debt (as % of GDP): 220.2%
Gross external debt: $402.24 billion
2009 GDP (est): $182.6 billion
11. Hong Kong - External debt (as % of GDP): 223.1%
Gross external debt: $672.9 billion
2009 GDP (est): $301.6 billion
10. Portugal - External debt (as % of GDP): 235.9%
Gross external debt: $548.45 billion
2009 GDP (est): $232.4 billion
9. France - External debt (as % of GDP): 248%
Gross external debt: $5.23 trillion (2009 Q3)
2009 GDP (est): $2.11 trillion
8. Austria - External debt (as % of GDP): 256.2%
Gross external debt: $827.9 billion
2009 GDP (est): $323.1 billion
7. Sweden - External debt (as % of GDP): 264.3%
Gross external debt: $881.5 billion
2009 GDP (est): $333.5 billion
6. Denmark - External debt (as % of GDP): 316%
Gross external debt: $627.6 billion
2009 GDP (est): $198.6 billion
5. Belgium - External debt (as % of GDP): 328.7%
Gross external debt: $1.25 trillion
2009 GDP (est): $381 billion
4. Netherlands - External debt (as % of GDP): 376.6%
Gross external debt: $2.46 trillion (2009 Q3)
2009 GDP (est): $654.9 billion
3. Switzerland - External debt (as % of GDP): 382.2%
Gross external debt: $1.21 trillion (2009 Q3)
2009 GDP (est): $317 billion
2. United Kingdom - External debt (as % of GDP): 425.9%
Gross external debt: $9.15 trillion
2009 GDP (est): $2.15 trillion
1. Ireland - External debt (as % of GDP): 1,312%
Gross external debt: $2.32 trillion
2009 GDP (est): $176.9 billion
It's time for fiscal prudence by these countries. Any tightening in government spending would see a slower recovery. And no tightening would see debt's ballooning further which would undermine the countries means to raise resources. So in my view the global uncertainty isn't easing anytime sooner. Nor are the developed countries likely to recover from the slowdown anytime soon. It looks like the day for the developing countries to become growth engines of the world has arrived. It truly is a chaotic period to live in. But it is full of hope too - hope that the old corrupted financial systems would give way to new ones, hope that the world would become more equitable, hope that the chasms between have and have nots will fill some more...But till it comes to fruition it is at best, well a hope.
Looking forward to the future...as and when it plays out!
Saturday, June 12, 2010
Tuesday, June 8, 2010
Shyam Bajaye aaj muraliya By Pt. Bhimsen Joshi
Listening to Pt. Bhimsen Joshi is always a magical experience. Here he sings a devotional song to Krishna and transforms it to divine plane by his range and control of voice. At the end of 10 minutes you would be left pining for more...but alas this is what is available. A good way to start listening to Indian classical music!
Sunday, June 6, 2010
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