Widdekind
Member
- Mar 26, 2012
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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:
total Debt
total Money-supplyDefining "earned Revenues" (R) as GDP less "net Borrowing" (NB),
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:
total Debt
total Money-supply
