Friday, August 23, 2013

Not Good

If this doesn't worry you, well, you're a mushroom.


We previously warned of what can transpire when desperate governments are no longer able to shoulder unbearable debts. As one can see in the chart above, total public debt in the United States recently crossed the proverbial Rubicon and now equals 104.95% of GDP. Though some would argue that a healthy dose of debt is necessary to foster economic growth, the US’s unsustainable public debt exceeds the same debt measures of crisis-stricken Cyprus and fragile Spain, where public debt as a percentage of GDP have been most recently estimated at 85.8% and 84.2%, respectively.

 H/T, ETF Daily News

Stephen

12 comments:

  1. They also say a little wine with dinner is good for digestion. Some of the pro debt folks must think gallons and gallons of it a day is just the ticket for a healthy happy life.

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  2. Exactly...egg sucking morons. Thanks, my friend.

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  3. Total Public Debt is the stupidity rating of the American People. Why?? Because we keep reelecting the same Idiots to run our country.

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  4. Yep and the interest on the 10 year bonds were rising as well which means regular interest rates will follow. It's gonna hurt bad then.

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  5. There's no question whether the American economy will collapse, but only that of "when". We'll be fortunate indeed if we get through another year.

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  6. Economic growth, inflation, I don't see the difference. What we need is stability. If people earn more, prices just go up, then people don't have enough and want more. A vicious circle that will end in collapse.

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  7. After taking a severe drubbing in 2008, most of my assets are tangible and physical these days. When the stock market goes down the drain, I'm not going to weep for the people that lose their proverbial rear ends. They should have learned.

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    1. I agree, Harry. I too went tangible back in ought seven.

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