America on Track 'to Add Three Times More Debt than Eurozone Over 5 Years'
10:17 AM, Jun 14, 2012 • By DANIEL HALPER
The eurozone might be cracking up, but as far as debt goes, America appears to be in worse shape than the entire eurozone in the long run. According to a new chart set to be released later today by the Republican side of the Senate Budget Committee, America is on track "to add three times more debt than [the] eurozone over [the next] 5 years."
Already, as the chart shows, America's debt exceeds the eurozone's, roughly $16.6 trillion to $13.3 trillion. (These numbers are based on what the debt is expected to be by the end of this year.) But by 2017, that gap is projected to widen, and America's debt is expected to be $22.3 trillion, while the eurozone's debt will be $15.2 trillion.
That means, over the next five years, America will have added $5.7 trillion to the national debt, while the eurozone will have added only $1.9 trillion.
The chart states that it is tracking "Change in general government (federal, state, and local) gross debt between end-of-year 2012 and 2012 in nominal U.S. dollars as projected by the IMF." All numbers, then, are a product of research conducted by the International Monetary Fund, though the chart has been put together by the staff of Senator Jeff Sessions, the ranking Republican member of the Senate Budget Committee.
The White House has been quick to blame the eurozone crisis for the financial troubles here in America. "Broadly speaking, the eurozone crisis remains a headwind to the U.S. recovery," White House spokesman Jay Carney recently said at a press briefing. "Our economic stake in Europe is immense, as you know. Europe is our largest economic relationship and our financial systems are deeply connected. And it is because the stakes are so high that throughout this crisis the President and his administration have been in close contact with their European counterparts and closely engaged in developments as they emerge."
And while the eurozone crisis is by no means just about debt, this new chart suggests that America must also look at its own fiscal problems as it tries to solve the great financial troubles it currently faces.