In the wake of the looming United States fiscal cliff, this infographic takes a look at debt across the globe to determine where the US stands compared to countries like Japan, Britain, China and Spain.
This extremely educational infographic analyzes America's fiscal cliff by first analyzing the four different kinds of debt and gives definitions for each one; public, private, internal and external. Public debt is money owed by a government as a result of issued bonds or money borrowed from financial institutions. Private debt is private citizens’ individual debt to creditors or companies. Internal debt is money owed to lenders within the same country. External debt is money owed to foreign lenders.
It also distinguishes between debt and deficit. Deficit is the difference annually between what the government takes in and what it spends. The debt is the accumulation of annual deficits.
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