The effects of the economic crisis on the developed countries are much deeper than political pundits would have us believe. Accordingly, in 2011, the United States will have a public debt comparable to its GNP. Due to population ageing in most Western countries, forecasts say that deficits will rise sharply, making it impossible to reimburse the current debts. The fatal day will arrive when creditors will want to recover their dues and states will be plunged into bankruptcy. Such are the conclusions of a report released by the Bank for International Settlements, which have been reproduced in full below. Only those countries which will have extended working life in their societies can hope to absorb the shock.
Read the entire report here
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