Countries with debt problems

In recent years there has been a worldwide economic crisis which has badly affected a number of countries around the world. Many country's economies have suffered greatly and trades and exports which were once a major part of their income are now struggling. There were problems in the Middle East which affected oil supplies, this caused the price of fuel to rise around the world and this among other things led people to seek credit. The credit bubble which was created meant the government had to bailout banks and the government itself had to borrow money from elsewhere.

Greece is currently the country in the spotlight due to its problems with debt. The problems in Greece have escalated to riots as the country's people are unhappy with their government. The government initially accepted a bailout package which was intended to help boost their economy but the bailout turned out to be insufficient. Now Greece has the added debt of the bailout package and is potentially facing a depression which could last for a number of years.

Whilst the UK has seemingly begun to move in a positive direction, the reality is that it still has a significant level of debt. The labour party overspent on their budget and so had to borrow money from other countries by selling bonds. Bonds must eventually be repaid and this is why the UK still has a very large debt.

There is also Ireland whose government has also greatly overspent on their budget and the tax paid by the Irish people does not cover that spending. Ireland's debt has got larger and larger because they resisted a bailout package to try and help them to start rebuilding.

Then there is the US who has a huge debt because it is such a powerful nation. Large export countries like China and Japan trusted the US and so allowed it to have a significant level of credit to import items. This along with a $700 billion bailout left the US with a huge debt which is constantly growing.

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