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.
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!
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
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.
An M2 Money Velocity keeps sinking like The Titanic.
And if we look at Total Public Debt as a percentage of real GDP, we get this sickening chart.
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.