The UK and its interest only mortgage.
If you want to borrow to buy a house you get the options of just paying interest on the principal debt OR a repayment where you pay interest and the debt.
Interest only is great if you believe in rampant inflation and flog the house CGT free for a packet. Repayment is great if you want to own an asset after a number of years outright and don't believe asset taxes and squatters will take your home away.
It is a tough choice.
The UK government, like most governments, are short termist like interest only house owners. They want it now and they want it cheap. So they issue lots of debt and service interest. And they do it again. And again. And again until the interest payments start dwarfing the revenue used to pay it off (that revenue being mostly tax or the profits on the sale of government assets like gold; remember him, that flog it all now, spend like mad chancellor Gordon Brown?)
The UK's interest only mortgage has a staggering GB62Bn interest payment schedule in 2015. (spectator). Now this is more than the education budget so I have a plan. Why not abolish state education (it is pretty crap anyway) and just have a private system? Or forget being masters of the world and close down the MoD and join the likes of Germany and Switzerland who seem to do pretty well without owning tanks and missiles and fighting-fodder? Or if this last one is a bit extreme, create a mercenary MoD and sell its services?
Borrowing is so easy when you are a AAA and don't care about the next generation. Solving this problem is not easy but the worst solution is borrowing even more because one day even Japan will not be able to service its debt without serious implications on its currency and way of life.
So here is my plug for the March Against Debt on May 14th.
Brits bet on property and inflation (cityam)
Banks start losing money: lower dividends, higher bonuses then (bloomberg)
Houses of Parliament to be turned into a hotel.