Tuesday, September 27, 2011

Real German debt may be 7 trillion Euros not 2 trillion

BERLIN (Commodity Online): Contrary to the reported public debt of 2 Trillion Euros, the true German debt may well total 7 Trillion Euros as per calculations by Bernd Raffelhueschen, an economics professor at Freiburg University.


Germany has other liabilities due to shortfalls in the social security and pension funds and this hidden German debt is estimated to be worth 5 trillion Euros, Bernd Raffelhueschen stated in Handelsblatt, a leading German newspaper reported. That puts the total German debt at 7 Trillion Euros against the officially reported 2 Trillion!!

If the figures turn true, then the ongoing European financial crisis may turn into a nightmare given that Germany is the largest economy in the European Union.

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