Debt Crisis

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The US debt crisis explained

28 Jul 05:40am

Filed under: Barack Obama, Debt Crisis, Finance, Imf, United States, Washington

The US debt crisis has raised some very serious questions, and the answers floating around range from crazy to impenetrable. So we talked to Scott Pape, The Barefoot Investor, to shed some light on what’s going on.

The United States pay more than $US1billion per DAY on interest. Photo: Sky News

Q. How the HELL did the US get into this mess?

A. Even though it’s the biggest economy on the planet, and it’s a really complex beast, they got to this point the same way that Tom from Townsville’s credit card got out of control – the US Government consistently spent more than they made.

And now they’re broke – and like Tom, that means they can’t pay for the basics.

Continue reading "The US debt crisis explained" »

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jf says:

03:25pm | 31/07/11

Richard says:08:17am | 28/07/11 “Disagree” That’s ok but as well as looking at both sides of the balance sheet you have to also look at the P&L. That is Tom from Toorak’s pretty strong cash flow. Because like Tom from Toorak, the USA’s income is strong. Poor old Greece, like… Read more »
Alex says:

09:43am | 31/07/11

USA was saved last time he knocked down communism in Europe.Unfortunately due to greed American tycoons who have invested in China,U.S. economy is in collapse and that collapse can not be stopped without war world.Military spending under Bush was without reason without equivalent.Bush in office last month gave $ 700… Read more »

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