Listening to talk radio, my favorite music, I heard the hosts discussing countries with perfect credit ratings. These ratings come from Standard and Poor's and Moody’s. The highest score is AAA. Guess what? The US is not in the top ten.
The top five are Australia, Canada, Denmark, Finland, and Germany in that order. The reasons for the ratings include the ratio of debt to GDP. Australia’s was 27.9% at the end of 2012. Denmark has the worst government debt of the top AAA rated countries. Theirs is 59%.
The good old USA is 102%. That basically means we spend more than we produce. And, we are headed for $20 trillion debt if some miracle doesn’t happen. Never mind, there’s not likely to be that big of a miracle. But, I have an idea.
Let’s have a lottery drawing and award the winner (loser) the entire debt. It cost nothing to enter and everybody is entered. The winner (loser) would assume all the debt. Obviously that person would not be able to pay off such an amount. But, the US would be out of debt and the winner could simply file bankruptcy. Then the country’s credit score would be excellent and we could borrow a pile of money.
Hey, I don’t charge for all my great ideas.
PMO
©2013
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