Feb 20 2013

Crossing the debt Rubicon. Does debt even matter? Over $5 trillion in Federal debt now held by international and foreign investors.

In most economic literature there seems to be a tipping point at which a nation enters a precarious state in which too much debt has been taken on.  A typical point occurs when a country hits a point where annual GDP is surpassed by total outstanding debt.  We recently crossed that threshold.  Another long-term trend […]

Oct 27 2012

A debt inspired milestone – US Public Debt to GDP ratio over 102 percent. In the early 1980s public debt grew at one point by 20 percent. We hit that point in the 2000s yet GDP did not come along.

What is the significance of having too much debt?  Does it even matter?  It seems that politicians understand something must be done but while the bickering occurs, the status quo remains.  We recently surpassed a milestone when it comes to our debt.  Total US Public Debt to GDP now stands at over 100 percent.  That […]

Categories

Archives