Obama Wins Bronze Medal in Government Debt Growth (IMF)

Confounded Interest ^ | 07/16/2012 | Anthony B. Sanders

[whitedog57]

The International Monetary Fund (IMF) has released a report 100206742-IMF2 showing that Spain and Japan are officially Zombielands. That is, their debt ratio will not stabilize over the forecast period.

Unfortunately, the U.S. is in third place in the Zombieland derby and is showing signs of rigor mortis with escalating debt and government spending and flat-lined GDP growth (just above 1%). So, President Obama receives a bronze medal in the race for debt issuance.

The IMF has two interesting charts dividing the world into fast growth and slow growth economies. The U.S. is in the slow growth group.

Look at Argentina, the fastest growing economy according to the IMF. And look at their growth in government spending (also the highest). Watch GDP growth stall in Argentina but government spending continue to grow.

It should be “Cry for Argentina.” This seems to be a global problem that also helped kill off American cities like Stockton, California.

[whitedog57]

Obama wins a Nobel Prize, now wins the US a bronze medal for insane government spending and debt. Way to go Obama!!

[KarlInOhio]

Well, it's not third place in government debt growth. The chart is sorted on the year the debt as a percentage of GDP will peak. I guess they assume that Obama won't be elected if they thing the GDP growth will exceed government growth by 2015.

Look at Argentina, the fastest growing economy according to the IMF.

The chart is labelled "Potential GDP and Expenditure Growth". What the (@#$(*@( is potential GDP growth? I guess if you nearly kill an economy that leaves plenty of room to potentially grow, but it doesn't necessarily correlate with actual growth.