Skip to comments.US Debt v. GDP Hits Post WW2 High 99.5% Following $55 Billion Overnight Debt Increase
Posted on 12/01/2011 2:15:35 PM PST by tcrlaf
Total Debt Now Over $15.1 Trillion
It seems like it was only yesterday that we celebrated 15,OOO,OOO,OOO,OOOBAMA day. Two weeks later, we are now well over 100 billion in debt over this historic landmark, or $15.11 trillion to be precise, following the predicted $55 billion increase in debt with the settlement of all auctions from last week.
And aside from the mind-staggering rate of new debt increase why else is this number notable? Because as we learned 10 days ago, total Q3 GDP in current dollars is $15.18 trillion.
In other words, US debt/GDP is now 99.5%, the highest it has been in the post WW2 period, and rapidly rising.
What is worse is that the delta to 100% debt/GDP is only $70 billion: this is about half of the next two weekly gross issuances of 3,10,30s and 2,5,7s of about $160 billion over the next two weeks.
In other words by the end of 2011, debt/GDP will finally be a triple digit number percentage. And the other notable thing is that the debt limit still is $15.194 trillion.
It is ironic that the economic growth ceiling and the debt issuance ceiling are now one and the same: if the the debt target number does not rise neither will the US economy. Q.E.D.
USdebtclock.org also has US unfunded liabilities to GDP ratio of 775% now.
And projected to be 811% of GDP in 2015 at current rates of growth.
We are almost at the Statutory Debt Limit passed this summer. The Super Congress has failed. We are now bailing out Europe with US taxpayer dollars.
The Federal Reserve is now our Government. Its really up to them what the Gov’t spends, what interest rate it pays, and possibly to a large extent, what they spend money one.
If interest even goes up by two percent, it’s going to get messy.
Mayer Amschel Rothschild quote: Give me control of a nation’s money and I care not who makes the laws.
I give it about two years.
Our debt-to-GDP is higher than that. And Tyler, there’s no safety in the US dollar, and the US default process will be completed.
Stuff like this always overtakes us before we know it. Congress is not expecting to have to really deal with it before 2013.
Sometime, during 2012, we’ll be facing the abyss.
Note: this topic is from 12/01/2011. Thanks tcrlaf.
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