Debt

Dear ML,

I read an interesting article on newspaper yesterday. This is what it talked about - DEBT.

You know the Chinese is actually the biggest buyer of US treasury bonds (amount of USD11.483 trillion). Assuming Chinese population is 1.3 billion, on average Americans owe each Chinese USD883 or equivalent to a iPhone 4S! But since American population is only 322 million, so each American actually owes each Chinese four iPhone 4S!!!

As a matter of fact, US owes other foreigner investors of total USD96.214 trillion (as of March 2011), so each American actually has a debt of USD29,880.

Let's look at figures below on debt per person in respective European countries: 

Greece - USD34,489
Italy - USD34,970
Spain - USD16,114
Portugal - USD18,435

I was like - OMG, does it mean each newborn baby already has a debt on his / her shoulder right upon birth?

What happens? Why it happens?

And most importantly, what is going to happen?

We live in an age of turmoil where we spend too much (even for the governments). So it is about time to re-think what we wanna have, and really ask ourselves "do we need this" before we buy.


k   xoxo