Skip to comments.Bloomberg: US Debt To Overtake GDP In 2012
Posted on 06/06/2010 3:16:24 PM PDT by blam
Bloomberg: US Debt To Overtake GDP In 2012
By Rocky Vega
06/06/10 Stockholm, Sweden US debt continues surging higher and the chart below shows a likely outcome: debt will exceed GDP in as early as 2012. Yep, thats fewer than two years from now.
the governments total debt [...] rose past $13 trillion for the first time this month. The amount owed will surpass GDP in 2012, based on forecasts by the International Monetary Fund. The lower panel shows U.S. annual GDP growth as tracked by the IMF, which projects the worlds largest economy to expand at a slower pace than the 3.2 percent average during the past five decades.
One concern about the rising debt is what PIMCOs Bill Gross refers to as the debt super cycle trend. Its a situation where the US eventually increases interest rates but, without improved economic growth, it gets much harder to pay debt-related bills. The US may have lot more difficulty selling its debt, or servicing it, when the lines below cross.
You can click the chart below or follow this link to see a bigger version and read Bloombergs accompanying article. (Note that there are two tabs, story and graphic.)
Geuss the myans were right after all...
It’s all good now, haven’t you heard?
Obama is President! Unemployment, low growth rates, increase in tax burden......... nothing is news worthy because all is fine and good!
All part of the master plan to destroy this nation and usher in one world government(anti christ).
As a man nearing 60 I don’t care that much for myself. But I weep for my grandkids.
As a Christian I’m praying it happens sooner rather than later then we’ll all be spared the horror that is sure to come.
The states need to get together and stop this madness!
It won't happen until state governments grow a pair and pull away from the Washington D.C. teat willfully.
It became a concern at FR when Obama took office.
Out of control government spending has been going on for a long time. The Republicans and GW Bush nearly doubled our national debt in 8 years with few complaints.
This is more serious that Republican vs Democrat politics. Its time to only spend what we can pay.
What party will take that on as a slogan?
The Secession Party!
I think we can safely say that noone under 60 will ever see a nickel of Social Security or Medicare.
sure they will, it’s just that the nickle they eventually get will only be worth 1/10000’th of what it is today.
Graphs tend to scare me and this one didnt fail to shock me either. Pretty scary situation we have put ourselves in. Now how to get out without making things worse, might not be possible with the constant tug of war that is our governmental system.
It has a ring to it.
It would be outlawed post haste however once it were seen as a predominant political power.
I'm under 60 and I have a decent nest egg for retirement.
By the time this yahoo in the WH is through I, and those like me won't see any retirement!
Obama's favorite song has to be "Bye bye Miss American Pie".
I would just flat out refuse to pay $500.00 for a stick of gum!
My poker playing buddies say there's no (bloodless) way back from here.
The news these days does nothing but raise my ire/anger. This was all avoidable but the desire by these marxist bastards knows no reason or bounds.
I swear the only way to stop this is going to be as it was done in 1776.
They are right. Once the govt. teat runs dry the addicts will go into withdrawal and it will get violent.
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