Another frightening chart…debt as a percentage of GDP…we are blowing away the 1930’s. …
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Another frightening chart…debt as a percentage of GDP…we are blowing away the 1930’s. …
You must be logged in to post a comment.
as far as I can see, this picture covers time till 2008, so all new “anti-crisis” spendings are not counted, so current picture with all those “stimulus” programs are even more ugly
Yes Alex the graph covers through Jan 2008. The situation is much worse now.
Does this accurately represent our economic tsunami? Where can we find “land” high enough to be safe??
5 aspects of this graph caught my eye:
1. Debt range as a % of GDP (150 < Debt% < 170) appears to be desirable
2. Our “current” financial situation began from about the time of our “S&L crisis” and has been climbing steadily ever since.
3. Our attempts to find alternatives to a “false” expansion have been unsuccessful ever since we departed from the “desirable” range
4. Until we resolve this – assuming it is a problem of the magnitude and severity seemingly indicated by this graph, we need a strong military
5. If 350 is the “top what comes next?
Given all this bad stuff, I continue to see what I believe to be fairly level headed analysts – NOT the CNBS type – calling this a new bull market and we are going to DOW 12000 by the end of the year. They claim there is too much pessimism, the 50 crossed the 200, and the market will continue to rise.
Maybe the graph above doesn’t matter ? We are in a brave new world maybe…
grab your popcorn, this is going to get interesting….
Jason,
How did the outstanding debt reduce so quickly in the 1930s?
Many Thanks, Susan
Susan…I have no idea. I’ll contact the source I got the chart from and ask.
Jason
Hi,
Where is this 49+ trillion coming from? should America need repay them at all or can it be waived !!
The debt reduction in the 1930s was achieved by growth of the economy due to WWII and inflation following the war.
We hope that this number is still fairly representative of the debt level because it is what the Bureau of the Debt says, about 390% of GDP.
If that is correct it is much less than Japan has confronted 9X and the Obama Adm is not concerned. Japan has had disinflation due to failure to grow. Debt shrinks demand and production. Japan been in the ICE AGE – everything is frozen.