14 Jan

Debt Star: Federal Debt Increased By 113% Since Q2 2008, But Real GDP Increased By Only 2.6%!

Anthony B. Sanders @ Confounded Interest:

How bad is the USA’s debt problem (as we approach the dreaded debt ceiling debate)?

Federal government debt held by the public surged starting in Q2 2008.

govdebtheldbypublic

But since Q2 2008, government debt held by the public surged 113%. But real GDP growth over 4+ years was a measly 2.6%. That’s not annual real GDP growth, but real GDP growth over 4+ years!

debtstarheld

Most people don’t talk about government debt held by the public. Instead, they focus on Total Public Debt, the one that stands at $16,432,692,129,510.84

govtdebt

While not as dramatic as Federal debt held by the public, it is still outrageous. Total Public Debt grew by “only” 69.26% since Q2 2008.

debtstar

An M2 Money Velocity keeps sinking like The Titanic.

m2veloc

And if we look at Total Public Debt as a percentage of real GDP, we get this sickening chart.

debtgdp

And since the Federal government has so little interest (whether the Administration or Congress) in actually stemming the tide of out of control spending, we are looking at a bad ending. Particularly since President Obama told John Boehner that government spending ISN’T a problem.

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About Curt

Curt served in the Marine Corps for four years and has been a law enforcement officer in Los Angeles for the last 20 years.

2 Responses to Debt Star: Federal Debt Increased By 113% Since Q2 2008, But Real GDP Increased By Only 2.6%!

  1. Nan G says: 1

    An M2 Money Velocity keeps sinking like The Titanic.

    People need to understand this part of our economy better.
    Money velocity means how often does the same dollar change hands in our economy in a year.
    If that number is high we have a thriving economy.
    When it is low it means; people get a dollar then save it.
    They only part with it if it is absolutely necessary.
    Businesses are ”sitting” on billions of dollars in Obama’s economy.
    Why?
    Because, without a budget, and with all Obama’s economic grabs outside the normal means, there is so much uncertainty that saving is the most prudent course.
    This explains Obama’s latest attack: on savings.
    Lowering the interest rate to near-zero is part of that.
    Business’ money might as well be in a mattress.

    ReplyReply
  2. Nan G says: 2

    December 12, 2012
    How Much Taxation Would Fund Current Spending?
    By Justin Hohn

    Ended with these facts:
    *100% confiscation of all income of those making more than $10 million would amount to less than 24 days of federal spending.

    *Confiscating 100% of all income from those who made over $1M funds the federal government for 72 days.

    *Confiscate 100% of all the income for people who make more than $200K funds the federal government for only about six months.

    *Confiscate 100% of all the income for people who make more than $200K funds the federal government for almost the 1 year.
    It is $30 billion short.
    And that doesn’t leave a penny for State or County or City governments!

    Maybe the poor can cough up the rest.
    Sure.
    Today Obama came out and demanded another $4 trillion increase in the debt ceiling.
    And if he gets it all the above will not be enough.

    ReplyReply

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