Quick little economic piece on TPM that points to a Morgan Stanley piece analyzing the relative debts of the US and European countries. It argues that instead of looking at the Debt to GDP ratio (which the US does pretty well on in comparison to other industrial economies) that we should instead look at it from a business perspective of Debt compared to Revenue.
http://tpmlivewire.talkingpointsmemo.com/2010/08/forget-debt-to-gdp-its-debt-to-revenue-that-matters--and-the-us-is-the-worst.php The fundamental logic makes sense to me. Don't look at GDP, look at actual revenues. You could have a huge GDP but if you don't tax it, you can't service debt period. This puts a greater perspective on not just the size of a countries GDP but also its ability to generate revenue from it. A small country with a higher tax rate may have a higher revenue stream (and therefore ability to service debt) than a big country with a very low tax rate. Interesting stuff. Judah ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Order the Adobe Coldfusion Anthology now! http://www.amazon.com/Adobe-Coldfusion-Anthology-Michael-Dinowitz/dp/1430272155/?tag=houseoffusion Archive: http://www.houseoffusion.com/groups/cf-community/message.cfm/messageid:325928 Subscription: http://www.houseoffusion.com/groups/cf-community/subscribe.cfm Unsubscribe: http://www.houseoffusion.com/groups/cf-community/unsubscribe.cfm
