National Debt exceeds GDP

[Lumpy 1]

Sheesh .. this is hardly a good sign to me but alas Obama/Democrats push for even more national debt..

I'm thinking we are screwed...so Democrats/Obamanomics fans, explain how this is a good thing..

-------------------------

Fiscal watchdogs and Republican lawmakers are expressing dismay at new figures showing the U.S. debt has now exceeded the nation's economic output, a threshold used by President Obama's fiscal commission in 2010 to warn that massive federal deficit spending would sink the U.S. economy.

According to the Bureau of Economic Analysis, the U.S. gross domestic product reached $15.17 trillion at the end of the third quarter 2011. That number is higher today, though a formal report on fourth quarter 2011 growth still has yet to be released. But with the national debt currently at $15.23 trillion and set to go up with the president's latest debt ceiling increase, the 100 percent GDP-to-debt threshold has been reached.

Republicans Blast Obama After National Debt Surpasses Economic Output | Fox News

 

[Lumpy 1]

chirp.. chirp..chirp

Seems really really quiet...

 

[Mr. H.]

Let's all do our part to add to the GDP.
If D.C. refuses to reduce the debt, then it's up to us to add some real, hard economic activity to the mix.

 

[Mr. H.]

We can always talk owls.
Took this picture Saturday in West Alton, Mo.

 

[Lumpy 1]

We can always talk owls.
Took this picture Saturday in West Alton, Mo.

Well okay .. There's a small owl that seems to like spending the morning and part of the day in my gazebo. I would mind so much, he's kinda cute, but he poops all over my hot tub cover.
I've named him Harley...

 

[The Infidel]

[ame=http://www.youtube.com/watch?v=K8E_zMLCRNg]Cricket Sound - YouTube[/ame]

 

[Intense]

chirp.. chirp..chirp

Seems really really quiet...

How long has it been since Bush was blamed for Anything?

 

[Mr. H.]

When we lived in the country/boondocks there was a creek that ran across the gravel road, about 1/3 mile from the house.

Late one night I was driving across the partially submerged road when out of nowhere a HUGE all-white owl swooped towards me and hovered for a moment. It was freaky and beautiful at the same time.

Wife said it was some kind of sign. I'll never forget that image.

 

[Intense]

U.S. National Debt Clock : Real Time

http://www.usdebtclock.org/energy.html

 

[Lumpy 1]

chirp.. chirp..chirp

Seems really really quiet...

How long has it been since Bush was blamed for Anything?

...I had considered blaming Bush pre-emptively but figured, what the heck, I wanted some sorta response.

 

[Mr. H.]

If I had a hot tub, and if that hot tub had a cover, and if an owl pooped on that hot tub with a cover...
I too would be unhappy.

 

[Dr.House]

chirp.. chirp..chirp

Seems really really quiet...

You needed to include Tebow in the title...

 

[Lumpy 1]

When we lived in the country/boondocks there was a creek that ran across the gravel road, about 1/3 mile from the house.

Late one night I was driving across the partially submerged road when out of nowhere a HUGE all-white owl swooped towards me and hovered for a moment. It was freaky and beautiful at the same time.

Wife said it was some kind of sign. I'll never forget that image.

Love it... I've never got over a full sized raven sitting on the deck railing outside my kitchen, They are black and shiny but there's an electric blue florescence in the sunlight that kinda takes your breath away....

 

[Lumpy 1]

chirp.. chirp..chirp

Seems really really quiet...

You needed to include Tebow in the title...

... my dumb, sheesh, that would have worked for sure...

... persecutions quite popular these days...

 

[Mr. H.]

That old farm house we first rented 17 years ago must have been vacant for a while.
After we moved in, we'd see deer grazing in the back yard. Racoon would perch themselves on the fence posts, and the buzzards nested in the old barn. Possum foraged outside the back door. Hawk soaring overhead.

But it was also a dumping ground for unwanted pets. Folks would drive down the road and just let 'em out. I can't rremember how many strays we took in. Catzndogz.
And the litters of critters that followed...

I kind of miss those days. We were so broke- but happy. Romace blossomed and new life soon followed.
She's 16 now.

Now it's the city life with all the amenities. Paper on the porch every morning. Garbage pickup, cable TV, a cell phone signal and even high-speed internets. Oh and the water. We can drink it straight out of the faucet.

But I don't fear poverty anymore. As tough as it is, it comes with valued memories.

 

[DSGE]

Japan's debt is over 200% of GDP. It's not important what it is as a percentage of GDP. Debt is a stock, GDP is a flow.

 

[Lumpy 1]

That old farm house we first rented 17 years ago must have been vacant for a while.
After we moved in, we'd see deer grazing in the back yard. Racoon would perch themselves on the fence posts, and the buzzards nested in the old barn. Possum foraged outside the back door. Hawk soaring overhead.

But it was also a dumping ground for unwanted pets. Folks would drive down the road and just let 'em out. I can't rremember how many strays we took in. Catzndogz.
And the litters of critters that followed...

I kind of miss those days. We were so broke- but happy. Romace blossomed and new life soon followed.
She's 16 now.

Now it's the city life with all the amenities. Paper on the porch every morning. Garbage pickup, cable TV, a cell phone signal and even high-speed internets. Oh and the water. We can drink it straight out of the faucet.

But I don't fear poverty anymore. As tough as it is, it comes with valued memories.

It's good to have practical experience in these times, who knows where were headed..

I like your attitude and your post, you're quite a fellow...

 

[Lumpy 1]

Japan's debt is over 200% of GDP. It's not important what it is as a percentage of GDP. Debt is a stock, GDP is a flow.

I admit that economics is hardly my strong suit. I'd appreciate if you explained a little better...It's not really a good sign, I would presume...Japan has been suffering for many years as far as I understand..

 

[DSGE]

Japan's debt is over 200% of GDP. It's not important what it is as a percentage of GDP. Debt is a stock, GDP is a flow.

I admit that economics is hardly my strong suite. I'd appreciate if you explained a little better...It's not really a good sign, I would presume...Japan has been suffering for many years as far as I understand..

Debt is a stock. So I might have a debt of $1000. GDP or income is a flow. So I might get $1000 a week. The fact that my debt is 100% of my weekly income isn't really helpful, since I don't have only a week to pay it off. I might have a year to pay it off, in which case I'd have $52,000 in wealth at my disposal.

Similarly, a nation can have many years to pay off its debt. If you look at the current real rates on US Treasury bonds, they can roll over their debt for a 30 year loan at a real interest rate (ie, an interest rate adjusted for inflation) of 0.72%. So not only can 30 years worth of GDP be used to pay the debt, GDP will actually grow each year by about 3% on average.

The other way to look at it is: if it's a problem (ie, if at some point you won't be able to pay it back), creditors will stop lending to you!

 

[expat_panama]

Japan's debt is over 200% of GDP. It's not important what it is as a percentage of GDP. Debt is a stock, GDP is a flow.

Actually, that's a very good point. Normally in accounting we compare debt to assets and look at our bottom line --the 'net worth'. The US gov't has lots of assets, from buildings to battleships, and land alone is 2.63 million acres.

None of that matters because it's the people that own the gov't and the people have over $71.1T in private assets and after covering $13.8T in private debt there's plenty left over to cover the ten trillion in publicly held debt. America is in good shape. The real issue is the fact that those of us creating all this wealth want to keep it that way and for four years now we've been loosing money with our government and we want to set it right again. Our private debt's been falling for years now and we've decided that we'll have our public debt fall as well.

Expect major changes in public policy soon.