Friday, August 3, 2012

This Kinda Blows My Mind

I saw an interesting headline on Zerohedge, that in the second quarter of this year, for every $1.00 increase of GDP, our debt went up $2.33. Sounds pretty bad, doesn't it?  But Tyler posted an interesting graphic that shows this isn't all that unusual:
The chart says that only once in the last 9 quarters have we not more than doubled the amount of GDP growth in debt growth, and two times, the debt growth was 3 or more times the GDP growth.  The odd quarter out was a year ago, June of '11, and debt growth exceeded GDP growth, but only by a little.  Which is why the Debt Clock shows our debt is 104% of our GDP and growing. 

1 comment:

  1. If this was a person's financials they'd be bankrupt. Guess we're all bankrupt then cause Uncle Sam stole our credit card.