Sunday, September 27, 2015

Debt Chart

ZH posts an excellent chart that explains the difference between Debt to GDP, Debt to Total Revenue Ratio, and Debt to Central Government Revenue Ratio.  Here is a small part of that chart:

Any comparison that demonstrates our irresponsibility with debt as compared to others is welcome.  This is a useful tool.

Having said that...
1) Anyone who thinks that we will pay off the debt that we take today is a fool.  Obama turned the US into a subprime nation when he tripled our debt to over $18T.  It will take a responsible leader to admit this and negotiate a default with the owners of our debt. 
2) This chart shows that the US is not unique in these three categories, and that we are relatively stable in relation to others.  Of course, as the world's largest and most diverse economy, we should be.
3) The chart does not have Russia listed.  The dirty secret about that mediocre economy is that their debt is radically smaller in comparison to any other nation.  How does that bode for Putin if/when the global economy erupts in a debt-crisis?
I'm no expert.  I'm just making conversation here.

Check out the full chart at ZH.

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