With American debt becoming the talk of every economist lets look at it what it is in simple words.
Debt definition according to wilipedia
A debt is that which one party, the debtor, owes to a second party, the creditor; usually this refers to assets owed, but the term can also be used metaphorically to cover moral obligations and other interactions not based on economic value.
| 10 most indebted developed countries |
| Countries | Debt as % of GDP | Size of debt ( $ bn) |
| Japan | 234 | 13,795 |
| Greece | 139 | 434 |
| Italy | 120 | 2,564 |
| Iceland | 108 | 16 |
| Belgium | 103 | 504 |
| Ireland | 102 | 220 |
| USA | 99 | 14,270 |
| Singapore | 95 | 254 |
| France | 88 | 2,365 |
| Portugal | 87 | 202 |
Source IMF, 2010.
The credit crunch brought this debt issue center stage,
In these financially gloomy times its every country priority to see how they can reduce their national debt .
In the past Americal FED came up with QE1 AND QE2
Quantitative easing (
QE) is an unconventional
monetary policy used by
central banks to stimulate the national economy when conventional monetary policy has become ineffective. A central bank buys financial assets to inject a pre-determined
quantity of money into the economy. This is distinguished from the more usual policy of buying or selling financial assets to keep market interest rates at a specified target value.
whispers are already heard about QE3 Coming ,will that happen or not we will know soon ,
If QE3 comes be ready to see short term liquidity flood in emerging markets whichin turn
should fuel inflation to them.
