CHART OF THE DAY: Are We About To Go The Way Of The British Empire?

button more charts
button chart prev
button chart next

Sovereign debt and its impact on the ability of a state to maintain government spending levels is a key topic perplexing the world right now.

But what is obvious is that, as debt levels increase, the power of state’s and their empires are endangered.

The British Empire may teach the American an excellent history lesson. From World War I to the end of World War II, the British Empire’s debts increased, much of it to a growing power in the United States that supplied it with arms.

For the U.S. today, China could be that supplier of goods, rather than guns, as the U.S. government racks up debt on the way to its decline.

Of course, this fate is far from certain, and there were many more reasons why the British Empire declined than just debt levels.

chart of the day, britain debt

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at