[quote=Eugene][quote]
The graph is an eye-opener, in that it shows how our recent additions to spending under Obama dwarf the deficit spending under Bush.[/quote]
In case you didn’t notice, the graph ends in 2007-08 and the takeoff began circa 1985.
Also, Arraya failed to mention what debt it shows. It is not federal or public debt (which is still something like 80% of GDP). It’s all debt outstanding in the system. Most of it is mortgage debt. Obama’s February stimulus bill was 5% of GDP. It would have been an almost invisible uptick on that graph.[/quote]
That is true. That is not the standard GDP to national debt chart. This one includes nation, state, corporate and personal. Still more accurate in doing comparisons to other eras and getting an overall approximation of ability to pay back because all other debt ratios besides national was miniscule compared to today.
IMO, the huge debt burden we have is more a function of how modern money mechanics work rather than policy. Put another way: For money supply to grow, debt has to grow. It’s built into the system.
