Is US Debt Irrelevant ?
Posted by slowsmile November 1, 2009
Here is a historic chart that shows the US GDP, the deficit and the amount of interest paid back on the US Debt through the years from 1945. Throughout this period it becomes painfully clear that the US Govt has steadily paid back less and less of its horrific debt as a percentage of GDP. This notional annual payback figure has now become quite laughable. I guess the US govt. must really believe that US economy is also too-big-to-fall. Trouble is that the whole world is watching the American economy very closely through a microscope, and all those complaining creditor nations are now very pro-actively defending against rash US economic and monetary policies. If you also consider history and the Fall of Roman Empire then there are just too many dangerous economic parallels here. Funny how history always seems to repeat itself without fail…
November 1st, 2009 at 11:29 am
Slowsmile:
I hardly characterize this as “funny.” Humiliating, dangerous even disasterous — but not funny.