Not adjusted in terms of Percent of GDP, duly noted, but even the KGB and Osama Bin Laden in their wildest dreams couldn't have done this kind of damage.
WOW!!! It would appear you Yanks, are on the way towards bankruptcy. That graph also explains, how every paper currency eventually becomes worthless paper. The return of the gold standard, may be sooner then you think.
"It would appear you Yanks, are on the way towards bankruptcy."
Yeah, it sucks. Although we're not alone; the UK spent close to 60% of a year's worth of GDP on stimulus a year or two ago, then followed it up immediately with monetary easing. Nasty business for everybody.
Those numbers do not include all the massive unfunded liabilities, the federal government keeps off their books. The debt situation is much worse then officially stated. In the mean time, I guess you might as well enjoy the party. Heck, how about another trillion dollar entitlement program? I mean who cares, China and Japan will just keep sending over the money.
So, as long as the democrat party remains in power, those deficits will be good, and produce not recession and depression, but Unicorns and Rainbows and Gumdrop fountains!
Adjusting for inflation doesn't help the 2008 / 2009 optics at all: there's still an increase in the Federal deficit of 308% in year 1 AO (Annum Obamanus).
I Hope that this trend Changes, but it doesn't seem too likely.
You folks should think on the fact that 85% of our trade & Americas are bound up together. If the US goes financially into the toilet, what do you think happens to Canada? The only advantage we have is plenty of raw resources like Australia. We either sink or swim together. With Obama in charge, thats like using a lead vest for a flotation device. JMO
You make an excellent point. We are moored to the American economy. When it goes down, we go down with it.
But what's the best thing Canada can do to mitigate the damage should the American government approach bankruptcy? I say that Canada's finances have to be as solid as a rock. Our fiscal stability must be the inverse of the Americans' to weather the storm.
WOW!!!
ReplyDeleteIt would appear you Yanks, are on the way towards bankruptcy.
That graph also explains, how every paper currency eventually becomes worthless paper. The return of the gold standard, may be sooner then you think.
And watch the economy tank. Damnit.
ReplyDelete"It would appear you Yanks, are on the way towards bankruptcy."
ReplyDeleteYeah, it sucks. Although we're not alone; the UK spent close to 60% of a year's worth of GDP on stimulus a year or two ago, then followed it up immediately with monetary easing. Nasty business for everybody.
It REALLY needs to be adjusted for GDP. It isn't even worth looking at without that adjustment.
ReplyDelete"It REALLY needs to be adjusted for GDP. It isn't even worth looking at without that adjustment."
ReplyDeleteI think what you're looking for is this:
http://upload.wikimedia.org/wikipedia/commons/thumb/3/3b/USDebt.png/514px-USDebt.png
Those numbers do not include all the massive unfunded liabilities, the federal government keeps off their books. The debt situation is much worse then officially stated.
ReplyDeleteIn the mean time, I guess you might as well enjoy the party. Heck, how about another trillion dollar entitlement program? I mean who cares, China and Japan will just keep sending over the money.
Another chart.
ReplyDeletehttp://tinyurl.com/yeexwdy
Hmmmm, we are freakin toast.
Yeah, but you're forgetting one thing:
ReplyDeleterepublican deficits = bad, democrat deficits = good.
So, as long as the democrat party remains in power, those deficits will be good, and produce not recession and depression, but Unicorns and Rainbows and Gumdrop fountains!
Adjusting for inflation doesn't help the 2008 / 2009 optics at all: there's still an increase in the Federal deficit of 308% in year 1 AO (Annum Obamanus).
ReplyDeleteI Hope that this trend Changes, but it doesn't seem too likely.
You ain't seen nothing yet... we're not even a year and a half into Obama's term.
ReplyDeleteHis philosphy is that debt is an asset when it's used to buy votes of those who receive the beneifts of the spending.
You folks should think on the fact that 85% of our trade & Americas are bound up together. If the US goes financially into the toilet, what do you think happens to Canada? The only advantage we have is plenty of raw resources like Australia.
ReplyDeleteWe either sink or swim together.
With Obama in charge, thats like using a lead vest for a flotation device.
JMO
Revnant Dreams:
ReplyDeleteYou make an excellent point. We are moored to the American economy. When it goes down, we go down with it.
But what's the best thing Canada can do to mitigate the damage should the American government approach bankruptcy? I say that Canada's finances have to be as solid as a rock. Our fiscal stability must be the inverse of the Americans' to weather the storm.