USA nearly last place for debt service.

Please take a look at slide 18 by the BIS published last week. In fact, (if this white paper is reasonably correct) the United States has some problems compared to a country, say such as China. A debt service coverage ratio (DSCR) for the USA is near the bottom of the list. A DSCR greater than 1 means the entity – whether a person, company or government – has sufficient income to pay its current debt obligations. The United States of America with a 2.5% rate increase is bankrupt. A DSCR of .7 –Again, a DSCR less than 1 means it does not have the funds to service its debt. China seems to have this cash flow issue under its belt. Hello!!

Click to access sp151112_slides.pdf

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