Global crisis: what debts will developed countries have?

Market Leader informed

The number of problems in the modern world is getting bigger while the number of the ways to solve them is declining. The pension problem is becoming more pressing. Scientists around the world are concerned about the reduction of the able-bodied population. It is not a secret that many countries have huge public debts. That is why austerity measures, including the reduction of financing a range of social programs, are seen as a solution.

Last week one of the popular info agencies released the results of survey, according to which by 2050 the public debts of the majority of the developed countries will reach 300% of the national GDP. According to the similar forecast for this year, the figure is 60% of the GDP.
The United Nations report that in 30-40 years the total number of those who are older than 65 years will double, reaching 1 billion people. If there are no active steps towards reconsidering the budgets, including the introduction of pension and health-care reforms, the sovereign debts of the developed counties will hit their economies with another severe crisis.

Of course, at this point the developed countries’ safety factor is fairly high in terms of pension and social maintenance, but the demographic situation there is seriously deteriorating.

The forecast for the US isn’t much better. According to the modest estimations, the public debt is expected to reach 415% of the GDP by 2050. The Japan is expected to experience even a harder strike: its sovereign debt is expected to reach 750%. The developing countries will have to face the same problem. However the problem there is not expected to be so severe.

Most European countries have already started to solve the problem and look more than gust determined. The striking examples are Greece and Spain, which at the beginning of the year announced the forthcoming austerity measures, including pension reforms. Many people around the world have already calculated that those who now are 25 years old will retire in 2050. They still have enough time to take care of their well-to-do retirement.

Analysts from the Department of Volume Analysis of Masterforex-V Academy note that the quotes of EURUSD futures (6E) are making another effort to grow from 1.3920, a level of the current contract with 52.000 lots of trading volume. Until the price settles below the level, the upward dynamics will hold true.

 

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