Skip to comments.As US Debt To GDP Passes 101%, The Global Debt Ponzi Enters Its Final Stages
Posted on 02/21/2012 5:00:58 PM PST by Kartographer
Today, without much fanfare, US debt to GDP hit 101% with the latest issuance of $32 billion in 2 Year Bonds. If the moment when this ratio went from double to triple digits is still fresh in readers minds, is because it is: total debt hit and surpassed the most recently revised Q4 GDP on January 30, or just three weeks ago. Said otherwise, it has taken the US 21 days to add a full percentage point to this most critical of debt sustainability ratios: but fear not, with just under $1 trillion in new debt issuance on deck in the next 9 months, we will be at 110% in no time. Still, this trend made us curious to see who has been buying (and selling) US debt over the past year. The results are somewhat surprising. As the chart below, which highlights some of the biggest and most notable holders of US paper, shows, in the period December 31, 2010 to December 31, 2011, there have been two very distinct shifts: those who are going all in on the ponzi, and those who are gradually shifting away from the greenback, and just as quietly, and without much fanfare of their own, reinvesting their trade surplus in something distinctly other than US paper. The latter two: China and Russia, as we have noted in the past. Yet these are more than offset by... well, we'll let the readers look at the chart below based on TIC data and figure out it.
(Excerpt) Read more at zerohedge.com ...
We are, in a word, bankrupt.
At this moment, I look forward to the currently rich Washington DC suburbs achieving the same level of prosperity as Detroit.
If we did that ... then we'd be OK, right?
Don’t worry, we’ll have a good auction for the March 14th 30 year bonds due to a flight to quality. Nothing to see here, folks, move along.
“In the long run, we are all dead.” ~~J.M. Keynes
He died long ago, and we are left holding his empty bag, which is about to explode in our faces, to mix a few metaphors.
You forgot the sarcasm tag, right?
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