"Recession" means "nobody is Borrowing" ?

Discussion in 'Economy' started by Widdekind, May 1, 2012.

  1. Widdekind
    Offline

    Widdekind Member

    Joined:
    Mar 26, 2012
    Messages:
    813
    Thanks Received:
    35
    Trophy Points:
    16
    Ratings:
    +35
    For decades, a quarter of the US GDP has been "debt financed", by annual "net Borrowing", of hundreds of billions of dollars. This across-the-board "deficit spending" has accumulated nearly $55T in total Debt, whilst the total (world) Money-supply (of USD) is less than $20T:
    [​IMG]
    total Debt
    total Money-supply
    Defining "earned Revenues" (R) as GDP less "net Borrowing" (NB),
    [​IMG]
    we observe, that the current "Recession" is associated with no net Borrowing, i.e. what we call "Recession" is actually the "honestly earned" portion, of US GDP, in the absence of "exuberant" spending-on-credit:
    [​IMG]
     

Share This Page