What is the big matters that attract international attention recently? It’s the debt crisis in Greece which means Greece is paying the price for past fiscal irresponsibility. Anxious investors have driven interest rates on Greek government bonds extremely high as well as risen the country’s borrowing costs. This will push Greece even deeper into debt. As a matter of fact, Greece’s public debt, at 113 percent of G.D.P., is indeed high, but other countries have dealt with similar levels of debt without crisis. American had federal debt which equal to 122%of G.D.P. in 1946 cause the United States was just walk away from World War II. Debt as a percentage of G.D.P. continuously falls in the decades that followed, hitting a low of 33 percent in 1981. The rise in G.D.P. in dollar terms was almost equally the result of economic growth and inflation, with both real G.D.P. and the overall level of prices rising about 40 percent from 1946 to 1956. Unfortunately, Greece can’t expect a similar performance. So the only way Greece could tame its debt problem would be with savage spending cuts and tax increases, measures that would themselves worsen the unemployment rate

Reference linl:http://www.feedcry.com/archive/aid/646236