Herpes On The End Of The Nose

Italy, revenue, expenditure and household

Mind you, not wishing to emulate Alan Friedman, but this evening I found myself discussing the situation Italian economy with an anonymous supporter of the 'end user Italy's most famous and this debate has forced me to do some internet research to better understand the situation.

Well, according to the word of ricrinito President, Italy is among the countries best placed to deal with the crisis and its economy does not raise any concern.

In support of the thesis, the 'anonymous supporter, showed a scrap of paper (indeed, of the Journal) to deliberately kept showing for the' Italy Deficit vs. GDP ratio for 2009 of 5.2%, lower that of many other European countries. Jubilation! Sollazzo! To enjoy as rich and spend it all up to 'last penny!

But I must confess that it had no confidence in 'current government (and very little even in those that preceded it) and adding this lack of confidence in the certainty of' rampant waste and malfeasance throughout the public sector Italian, struggle hard to place the 'Italy among the countries best placed economically.

Then I went to read the indicators of deficit and I did some thinking.

simplifying and comparing the economy of a nation to the family income, GDP (Gross Domestic Product) is the sum of all wealth produced in a year. Italy for our family, we say that is the sum of the salaries of Mom and dad.

Every family we know, every year has to face the charges, and when these expenses exceed the revenues, this shortfall is called deficit. It is this: in 2009 the family returned Italy / won and has spent € 100,000 € 105,200.

This in itself does not seem a problem so dramatic, especially in a period when GDP shrinks a lot (-5% in 2009 in fact!) And where the state spends too much for the resulting increased social spending (unemployment benefits / mobility / unemployment etc.)..

In short, the family has had a difficult year and Italy has asked for a finanziamentuccio. You'll understand!

The problem, as everyone who has ever wondered calculator knows, is that to get the funding you need to have an economic situation that ensures those who delivers them to return the grain (unless you live a few years ago in the States, but that's another story ..).

For example, no one gives you a loan if you already have on another.

And then we look at the family's bank account in Italy. We find an impressive figure, one of the highest in the world. Our family, which generates an annual deficit, and then a debt has accumulated over the years a total debt of 115% of GDP.

In practice, earning € 100,000 's years, it spent € 105,200 but failed already € 115,000 of other debt.

Well, this is a very worrying situation, because even beyond the numbers (in reality we are talking about MLN of € 1,761,191!) We were one of the most indebted in the world, as we only Japan, ' Egypt and South Africa was another whose name I do not protest to the trouble to search ...
states are indicated in black on the map below, which have a public debt exceeding 100% of GDP. We are the blacks of all ...

In short, a family of good people but that each year spends more than it earns and has accumulated a debt This step will hardly be able to pay.

those who continue to lend money to a family like that? In short, there is little to be happy and a lot to think about. For example, what will give our family Italy, when we will be back on the debt? Health? School? Pensions?