June 4 (Bloomberg) -- President Barack Obama is poised to increase the U.S. debt to a level that exceeds the value of the nation’s annual economic output,
Sit down before clicking.
The debt numbers are staggering enough but not the whole story. Suppose Bill Gates (net worth $53 billion) buys a Lamborghini. Now suppose I (net worth way way less) buy the same car. Is it the same? Can it be said we both have shown the same fiscal resposibility? The percentage of debt to income tells a completely different story than the debt alone.
Here is a chart showing the debt to GDP ratio going back 218 years, scroll down for individual years. We have never seen anything approaching this kind of debt.
Just for fun, I looked a little deeper into the numbers. The average debt to GDP ratio from 1993-2000 (Clinton) was 63.93%. From 2001-2008 (Bush) the average was 62.18%. Despite fighting 2 wars and weathering 9/11 Bush was more fiscally responsible than Clinton and the numbers prove it. It's still far too high but that's not my point. My point is Clinton did not do as well with the economy as he is given credit for. Obama is off the charts and it may already be too late to save us.
20 comments:
Third World status here we come, Hope & Change yall!
Can't wait for LPOV to paste some more Marxist tripe about how wonderful it is.
Well, it's gonna get worse.
http://www.foxnews.com/politics/2010/05/26/despite-soaring-national-debt-congress-goes-spending-spree/?test=latestnews
Congress, read the dems since they control it, are spending beyond belief. By the end of this fiscal year we'll be at a 1.56 TRILLION dollar deficit just for 2010.
This is beyond inexcusable, this is criminal.
Wolf and Blogger
Look at the chart and notice when Republicans leave office the deficit is rising and continues to rise for at least 2 years of the Democrats presidents term. The deficit makes a turn around and begins to fall and continues to fall for at least two years into the next Republicans term then with voodoo economics and corporate socialism the deficit starts back up.
If you want sound proven economics then elect Democratic political leaders.
Wolf:
"By the end of this fiscal year we'll be at a 1.56 TRILLION dollar deficit just for 2010."
You son and son-law going to risk their lives for free?
You want to cut your mom and dad's social security and medicare?
What would be the misery level be in America if we did as you say and slashed the budget to only what revenue was coming in?
The only answer is to invest in restarting the economy.
We are at one of those points in history between economic engines. The industrial revolution is over, the computer age has peeked, the space age is over. Our next economic engine has to be a green revolution with mass transit trains, street cars, bike trails, fewer highways and parking lots rebuild the old cities. We will have more walking neighborhoods, farmers markets, local groceries, sidewalks, parks and townhouses.
We will go back to the future.
I just heard today in Japan the young don't want to learn to drive an automobile.
This could take thirty to fifty years to complete.
What is the plan of the dark age seekers?
Liberalproverbs18:2, as the Wolf has always said, you restart the economy by only giving entitlements to those that need them and most of those entitlements are done on a local level. You do away with the new slavery entitlement programs that have been designed by the liberals to insure their re-election by encouraging people to vote fore them for more bread and circuses.
Once we cut out the waste, there is not problem paying for items covered by the constitution such as national defense. At least ther would have been no problem except we have to pay for the money borrowed to pay for big government spending.
It is no wonder you want to go back to the misery index caused by Carter. For once you have made a good point. Obama has re-invented it.
Guy and Wolf
"Liberalproverbs18:2, as the Wolf has always said, you restart the economy by only giving entitlements to those that need them and most of those entitlements are done on a local level."
Many areas of the country have far greater needs, ( the Gulf coast, Appalachia, Detroit, Small Midwest towns) who do you have in mind?
How will the know nothing deal with America's misery or the world's misery level for that matter as we find our new economy?
You know the textile and furniture jobs will never return. The auto cannot be sustained as we have know it.
Does the tea party mob have the leadership and knowledge to deal with massive challenges?
I'm not sure the Obama admin has those skills but I'm sure the republicans don't.
May 28 (Bloomberg) -- U.S. stocks slid, capping the worst May for the Dow Jones Industrial Average since 1940, while the euro slumped and Treasuries rose as a downgrade of Spain’s debt rating and escalating tensions on the Korean peninsula triggered a flight from riskier assets.///
YES HE CAN
The federal government is now $13 trillion in the red, the Treasury Department reported Wednesday, marking the first time the government has sunk that far into debt and putting a sharp point on the spending debate on Capitol Hill.
Calculated down to the exact penny, the debt totaled $13,050,826,460,886.97 as of Tuesday, leaping nearly $60 billion since Friday, the previous day for which figures were released.
At $13 trillion, that figure has risen by $2.4 trillion in about 500 days since President Obama took office, or an average of $4.9 billion a day. That’s almost three times the daily average of $1.7 billion under the previous administration, and led Republicans on Wednesday to place blame squarely at the feet of Mr. Obama and his fellow Democrats.
Just read this: At $13 trillion, the debt figure has risen by $2.4 trillion in about 500 days since President Obama took office, or an average of $4.9 billion a day. http://www.washingtontimes.com/news/2010/jun/2/federal-debt-tops-13-trillion-mark/
Sark, Blogger, Oatz
Obama didn't start those wars you were so gun ho on.
Obama didn't cause the depression were' re in, I believe there was a republican in office.
Obama didn't give a huge tax cut to the richest one percent of Americans causing the deficit to shift to the red.
What do you want cut?
Veterans benefits? Social Security? Ammo for the wars? Close schools? Empty prisons? Border patrols? What? Increase Taxes?
Does the tea party mob have a plan?
Lets start with eliminating the abuse of entitlement programs that the liberals use to keep themselves in power. Lets then go back to only funding those activities in which the federal government is allowed to participate as per the constitution. Lets deport the illegal aliens to save billions of dollars and lower the crime rate. Lets go to the fair tax system. Lets eliminate the over regulation of private businesses. Lets repeal Obamacare as the majority of the citizens of the U.S. want to do. Lets move forward with becoming energy independent by taking away the over regulation that caused the oil disaster in the Gulf.
LPOV, OK, I'll play...
End ALL foreign aid. Only exception is for military aid to allies in time of war.
NO BAILOUTS of any private enterprise. Period!
No "stimulus" slush funds.
No retirement benefits for Congress.
Eliminate the departments of : Education, commerce, energy, health and human services (ANYTHING with a name like that should NEVER have existed), agriculture, homeland security, housing and urban development, labor, transportation.
That's for starters, so whadda think LPOV? What would YOU do?
Remember, even a 100% tax rate on everyone wouldn't fund the country for this year, much less pay off the debt, so no " I'd tax al those evil rich people!"
Guy
" Lets eliminate the over regulation of private businesses."
You want to give BP less regulations?
You want less regulations on banks and insurance?
Wolf
"End ALL foreign aid. Only exception is for military aid to allies in time of war."
This myth will save about 0.0010% of the budget.
Liberalproverbs18:2
The over regulation regulation of which you approved caused the tragedy with BP by requiring them to drill in deep water instead of on land. This is the cause of the problem.
You want to give BP less regulations? Yes, certainly.
You want less regulations on banks and insurance? Again yes, certainly. They should never have been required to give loans to those that could not repay them.
Guy
This BP oil well that's destroying the lives of the entire Gulf of Mexico coast line was not even going to be put into production like thousands of other oil wells in the gulf.
The oil industry has the oil now but choses to limit production to control price.
No I don't want to see oil wells in National Parks or the Carolina Coast.
The earth may run out of air and clean water before we run out of oil.
I don't think even the know nothing tea party will run on your suggestions.
Read the polls, Liberalproverbs18:2. Most people still favor offshore drilling. The vast majority favor energy independence.
Is this another issue in which you lack training and knowledge?
Guy
"Read the polls, Liberalproverbs18:2. Most people still favor offshore drilling. The vast majority favor energy independence."
The vast majority of are often wrong on many subjects.
The Vast majority of southerns opposed integration in the 1960.
The vast majority of men in America smoked in the sixties.
The vast majority supported the invasion of Iraq.
The Vast majority of Americans believe diet sodas will keep you from gaining weight.
The Vast majority at one point believed the earth was flat now only you and two other people believe such nonsense.
The vast majority of Americans still believe Reagan was a good president.
Liberalproverbs18:2, and your point is? As you are a socialist, I did not expect you to believe in democracy. Another weak post that has no point. This is something else you lack the training and education to speak on intelligently, as you admitted on other issues.
What is your reasoning and why are you making it? Where is your proofs of what you contend?
Focus. Try to focus.
June 4 (Bloomberg) -- President Barack Obama is poised to increase the U.S. debt to a level that exceeds the value of the nation’s annual economic output, a step toward what Bill Gross called a “debt super cycle.”
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