This BBC page from 2011 has a nice interactive graphic of who owes what to whom. It also contains this:
Country Foreign Debt/GDP Govt Debt/GDP
France 235% 87%
Spain 284% 67%
Portugal 251% 106%
Italy 163% 121%
Ireland 1093% 109%
Greece 252% 166%
Japan 50% 233%
Germany 176% 83%
UK 436% 81%
US 101% 100%
As you can see, for some of these countries, private debt dominates. Take the first row, for example - France. French government debt, even if it was all foreign debt, would still leave private foreign debt to be 235% - 87% = 148% of GDP.
As Krugman pointed out, it was private, not public, borrowing that created the mess in many of these countries. And when both private and public sectors simultaneously try to reduce debt, the result is an economic recession or depression.
PS: Four year old information from the McKinsey Global Institute, but still useful I think to get a qualitative understanding of what is going on.
Country Foreign Debt/GDP Govt Debt/GDP
France 235% 87%
Spain 284% 67%
Portugal 251% 106%
Italy 163% 121%
Ireland 1093% 109%
Greece 252% 166%
Japan 50% 233%
Germany 176% 83%
UK 436% 81%
US 101% 100%
As you can see, for some of these countries, private debt dominates. Take the first row, for example - France. French government debt, even if it was all foreign debt, would still leave private foreign debt to be 235% - 87% = 148% of GDP.
As Krugman pointed out, it was private, not public, borrowing that created the mess in many of these countries. And when both private and public sectors simultaneously try to reduce debt, the result is an economic recession or depression.
PS: Four year old information from the McKinsey Global Institute, but still useful I think to get a qualitative understanding of what is going on.
