Capstone investments – July 9 2025

 By Bryce Pease CFP® Accredited Investment Fiduciary® Casey Morris CFP® Capstone Pacific Investment Strategies, Inc. California, Colorado, Nebraska

You think we have high government debt, look at other major countries!  

This chart just looks at the government debt of the major countries around the world which is getting a lot of attention as it has risen faster than ever since COVID began.  We believe governments, and especially the U.S., made a huge error in over-reacting with stimulus to COVID: $11T out of the total $27T since 2008 in the U.S. debt came in just three years between 2020 and 2022. 

Country

Debt/GDP Ratio

Total Debt

Singapore, 419, 1.0T

France, 261, 8.0T

United Kingdom, 250, 10.5T

Switzerland, 250, 2.3T

Belgium, 250, 1.7T

Finland, 233, 0.7T

Germany, 161, 4.5T

Canada, 146, 3.2T

United States, 96, 26.0T

Argentina, 46, 0.7T

10 Richer Countries In The World With High Debt Ratios. hsdent.com

Our total government debt may sound high at $26.0T, but it is second to the lowest as a percentage of GDP at 96%… and that is very high historically.  But it is very low compared to our peers. Only Argentina is lower at 46% of GDP as it is a second world country with less creditworthiness to access debt which is currently only $0.7T.  That’s less than half the ratio of the U.S.

Look at other leading countries. Singapore is a true city-state which alone gives it higher income and debt ratios, but its 6 million citizens have more government debt at $1.0T than the $0.7T of 45.5 million people in Argentina. But as a percent of GDP, Singapore’s debt ratio is the highest at 419%.  France is next at 261%, closely followed by the U.K., Switzerland and Belgium at 250%.  China is on the edge of bankruptcy although you’d never know it by their high level of current spending.

 Who would have thought we would have looked so fiscally responsible at a mere 96%?  Not that our country is in such great shape financially.  In the event of some kind of world economic turmoil, however, the U.S. could end up being the best house in a bad neighborhood!  The truth continues to be the world is in some kind of a debt bubble and for some countries this may not end well.  

Many financial advisors include international or foreign stocks in their client accounts.  This is done to diversify your accounts.  We believe diversifying accounts is important.  Now may be a good time to ask your advisor if you have money in any of these countries.

Casey Morris CFP®                                                                                                                                Bryce Pease CFP®

Any securities mentioned in this article are not a recommendation to buy, sell or hold.