Debt to GDP

Hat tip: Global Finance Magazine

The graph above illustrates the total U. S. debt to GDP ratio over the period of the last 82 years.

More information:

Year Real GDP YOY % Change Real Personal Income YOY % Change Total debt YOY % Change
2011 13227.9 2.24 11370.7 3.99 52603.8 1.53
2010 12937.7 2.17 10934.7 -2.19 51808.8 -0.87
2009 12663.2 -4.55 11179.8 -2.60 52265.5 -0.32
2008 13266.8 1.61 11477.8 2.43 52433.4 4.78
2007 13056.1 1.24 11205.8 3.98 50043.2 10.34
2006 12896.4 3.05 10776.7 3.95 45353.9 9.87
2005 12515.0 3.28 10367.0 3.07 41279.4 9.15
2004 12117.9 4.12 10057.8 3.09 37819.1  
2003 11638.9 1.50 9756.6 -0.20  
2002 11467.1 1.59 9776.4 0.91    
2001 11287.8 2.30 9688.7 3.51    
2000 11033.6 4.17 9360.5 5.09    
1999 10592.1 4.93 8906.9 4.85    

Source: St. Louis Federal Reserve (FRED), Federal Reserve

I think that this largely speaks for itself. Some brief observations:

  1. The present trend is unsustainable.
  2. A lot of the growth of the last couple of decades was illusory. Increasing debt of itself makes growth look larger.
  3. There is no reasonably foreseeable level of economic growth that will bail us out of this problem.
  4. Deleveraging has barely begun.
  5. Deleveraging has stopped.
3 comments… add one
  • steve Link

    Exactly. What brilliant economic strategy will overcome this level of debt?

    Steve

  • Icepick Link

    What brilliant economic strategy will overcome this level of debt?

    Social fracturing, social unrest, hyperinflation, depression (economic, not emotional – although that probably wouldn’t hurt), revolution, war, famine & pestilence – roughly in that order but it’s always fun to spice things up a bit and mix up the order. And after all that? Happy days are here again!

  • Icepick Link

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