Putting the Greek debt in perspective

[Fumesucker]

Greece has a total debt of about $350 billion.

http://moneymorning.com/2015/03/25/how-much-does-greece-owe-4-charts-that-put-greek-debt-in-perspective/

To put that number in perspective it is about 23% of the estimated program cost of the F35 that cannot fly in rain, gets outfought by an F16 and costs approximately $1.5 trillion over the life of the plane, almost certainly a conservative estimate given the history of military contracting in the US.

http://www.cnbc.com/id/101883138

[SusanCalvin]

1. Yep.

Chump change to the military-industrial-congressional complex.

[MannyGoldstein]

2. +1.5 trillion

That definitely helps to put it in perspective.

[Sherman A1]

3. K&R

Well said.

[mythology]

4. That actually really doesn't put it in perspective

because it doesn't compare two similarly sized economies.

Greek's GDP is about $22,000 per capita. The same in the U.S. is about $53,000. The total economy of Greece is about 238 billion dollars and the total size of the U.S. GDP is about 17.5 trillion dollars.

So Greek's debit is actually about 1.5 times the size of their total economy.

You can't really compare the largest economy in the world to a country that is in the mid to low 40s in terms of size.

That said, we also drastically need to cut back on our military spending and get our financial house in better order.

[cstanleytech]

7. "we also drastically need to cut back on our military spending" So true, we would be far better off

cutting our military spending by 40% (and we would still be outspending China and Russia combined by far) and redirecting the money to improving things like the highways, bridges and rail system in this country that are literally falling apart and we would see a far bigger economic return if we did that than anything because it would put far more people to work and get money right into the economy.

[Fumesucker]

8. Perspective counts for a lot

And there is always more than one way of looking at things, I was giving one perspective, not saying it was the only one. The world economy is likely to be shaken and possibly crashed by an amount that is almost trivial in the grand scheme of things, we are throwing away more than four times the Greek debt on a bunch of hangar queens that melt the deck of the carrier that was designed for their naval deployment when they land on it.

[PETRUS]

10. Another number: $10 trillion

From the CEPR:

"Using the I.M.F. projections from April 2008 as a benchmark, the policies pursued by the euro zone leadership will have the cost the region more than $10 trillion (@ $30,000 per person) by the end of 2015. In this context it is interesting that the Washington Post condemns the Greek government as being irresponsible."

http://www.cepr.net/blogs/beat-the-press/washington-post-touts-greek-growth-that-will-restore-2007-gdp-in-2035

[Fumesucker]

14. Now that really is an interesting perspective

Things that make you go Hmmmmm....

[Igel]

16. Fiction.

"Using the projections" before fall 2008 ... You remember fall 2008, don't you?

In fact, using projections completed about the same time that the first data showing we were entering a recession were about due.

The same kind of thinking was in 2001, 2002: Using projections we'd have a huge surplus. Of course, that really assumed no increase in spending and instead of a recession continued, unabated growth like in the '90s. BTW, at the time all the leading indicators said "recession in 3 ... 2 ... 1."

Look at the projections for the US economy in mid 2009, the effects of the stimulus and TARP. You'll find that Obama, by that measure, cost us far more than the Greek debt.

It's a bad methodology, using assumptions that change in conjunction with a sketchy understanding of the subject; we only use it when it makes us look good, and spot its flaws when it makes us look bad. It's always flawed. The longer the term, the more flawed.

One projection that did turn out to be fairly correct was very short term: In early 2008 there was an anti-recession stimulus. Forecasts that it would lose its effect in late summer/early fall 2008. That came around and nobody did anything. The assumptions didn't change, and it was short-term enough that the sketchy theory had enough predictive umph.

[PETRUS]

19. Either way, it calls into question the IMF's judgement on economic matters, eh? nt

[ProdigalJunkMail]

5. 130+% of GDP...

so, no... the cost of a weapon system doesn't put it into perspective.

sP

[Fumesucker]

9. It's good that there is only one way to look at things, one perspective

[ProdigalJunkMail]

13. laugh all you like...

your 'perspective' is not relevant...

sP

[Fumesucker]

15. Thirty one recs as of this moment

Evidently not everyone agrees with you.

Just to slide a little ad populum argument in here.

[ProdigalJunkMail]

20. yes, DU has all the brains regarding international monetary policy

i bow down to their (and your) obvious prowess...

sP

[Fumesucker]

21. You are completely missing my point while helping me make it

In terms of the world economy the Greek debt is small potatoes, why is a relatively minor amount of money causing such havoc in finance and banking unless some power or powers wish for the havoc?

[OnlyBernieBurnsBush]

6. Merkel doesn't care.

[Fumesucker]

12. OK, now that you mention it I see the resemblance

[Spitfire of ATJ]

11. But we NEED the F35 for the upcoming Earth VS Flying Saucers air war....

Everyone knows flying saucers can't fly in the rain either.

[Adrahil]

17. Greek GDP is roughly $250 Billion

U.S. Economy is about $17.5 TRILLION.


It makes a difference. a BIG difference.

[Hydra]

18. I like how you put this

It's like how all the Republicans and "Sensible" Democrats scream about how SSI and other social programs are financially destroying us...while they spend 50+% of the yearly budget on the Military.

Pure insanity.