Newspaper Clippings: U.S. adds to huge debt

Last I heard, Canadians' household debt is about 140 per cent of disposable income and rising, which is lower than Britain (about 150 per cent) and the US (almost 170 per cent) but significantly higher than countries that use the euro (about 90 per cent).

So, if it was a horse race and we thought household debt was like bling hanging around our necks - and not a noose - the US would be in the lead, Britain would be two lengths behind, Canada three, and European countries (for the most part) wouldn’t even be within sight of the clubhouse turn.


And now this from Friday’s London Free Press:

Washington - The House of Representatives has approved a measure allowing the American government to borrow $1.9 trillion to pay its bills. The measure would raise the so-called debt limit to $14.3 trillion - more than $45,000 for every person living in the US. The massive increase in debt is required because the government has to borrow more than 40 cents of every dollar it spends cue to the fact the recession has caused a slump in revenues at the same time spending has spiked.

In my humble opinion, this is very bad news for the US and Canadian economies.

And because it’s bad for our economies it’s also bad for our shared environment.

Because it’s bad for our environment the cost of future damages and possible reparations will rise.

Because costs will rise our overall household debt will rise.

Our plans for a sustainable future should have been considered more carefully 60 years ago.

Please click here for information related to a book that brings useful ideas to the table.

.