29 July (EIRNS) In line with JP Morgan’s call for a return to fascist constitutions, the Bank of International Settlements (BIS), in its 86th annual report is quite clear on the issue:
Chapter IV of the BIS report, titled “Fiscal sustainability, where do we stand”, opens as follows: “Six years after the onset of the global financial crisis, public debt in most advanced economies has reached levels unprecedented in peacetime. And, worryingly, it continues to rise. But the crisis has only made an already bad situation worse. In 2007, public debt was already at historical highs in many advanced economies, having trended upwards more or less continuously since the mid-1970s. Even worse, official debt statistics understate the true scale of the fiscal problems faced by many economies, as governments have made promises that imply major increases in pension and health care spending over the coming decades.”
BIS argues the problem already existing before the 2008 banking crisis was not the crazy banks themselves, but the fact that “governments have made promises that imply major increases in pension and health care spending over the coming decades”.
In the same direction goes the latest figures published by the Freibourg based Stiftung Marktwitschaft, specialized in debt calculations. The Stiftung first praises the above mentioned chapter of the BIS report and explains that the BIS makes reference of the “implicit” debt not figuring in official statistics, the latter reporting only “explicit” debts.
By including everything promised by the governments in term of healthcare and pensions, says the Stiftung, the public debt of Belgium is not the 104.5 % of Belgium’s GDP but a whopping 558% ! For France, the figure is 358%, For Finland 420%, etc.
Since in Italy, the pension system was slashed, the “implicit debt” is now negative: minus 123% of Italy’s GDP. The usual suspects, accused of promising too much pensions and health care are Ireland (implicit debt 1271% of GDP), Luxembourg (1209%), Greece (720%), Spain (735%), Cyprus (764%), Slovenia (620%), in short, all those targeted by the Troika for shutting down their social systems.