Monday, January 9, 2012

US Debt Exceeds GDP

Another achievement for the Obama administration!

The amount of money the federal government owes to its creditors, combined with IOUs to government retirement and other programs, now tops $15.23 trillion.
That's roughly equal to the value of all goods and services the U.S. economy produces in one year: $15.17 trillion as of September, the latest estimate. Private projections show the economy likely grew to about $15.3 trillion by December — a level the debt is likely to surpass this month.
By comparison, Greece's debt-to-GDP ratio was 120% before their economy collapsed.

Unfortunately, I haven't heard any of the Republican presidential candidates offer a credible plan to avert economic catastrophe.  And we know we can't count on the Democrats to do anything but borrow $Trillions per year.

Anything that can't go on for ever won't.  This insane borrowing and spending will stop.  The only questions are when and how.  Waiting longer will only worsen the inevitable pain.

No comments:

Post a Comment