Thursday, July 27, 2017

Total government and consumer debt in the U.S. is nearly 2.25 times the nations annual GDP

In 2016 the Gross Domestic Product (GDP) for the U.S. came in around $18.57 trillion, with over 90% of that being government (34%) and consumer (61.1%) spending.  This means that virtually the entire economy depends on the government and its citizens continuing to spend money.

Yet because of the fact that the real economy has seen rates of inflation since 2008 reside between 6 - 10%, and wages have not increased in relation to this factor since around 1978, consumers as well as politicians have had to borrow money at ever increasing rates just to sustain a less than 2% growth rate.

The accelerated rise in debt for all segments of America truly began around 1980, when total debt between government and citizens was around $3 trillion.  And during that year GDP came in at $2.86 trillion, making the debt to GDP ratio nearly 1:1.

Today however the American economy cannot sustain itself without an ever increasing amount of debt, and in a new report on July 27, the total amount of debt between consumers and government is at a whopping $41 trillion, and this means the debt to GDP ratio is now at 2.25:1.

We are living in the greatest debt bubble in the history of the world.  In 1980, total government and personal debt in the United States was just over the 3 trillion dollar mark, but today it has surpassed 41 trillion dollars.  That means that it has increased by almost 14 times since Ronald Reagan was first elected president.  I am searching for words to describe how completely and utterly insane this is, but I am coming up empty.  We are slowly but surely committing national suicide, and yet most Americans don’t even understand what is happening. 
According to 720 Global, total government debt plus total personal debt in the United States was just over 3 trillion dollars in 1980.  That broke down to $38,552 per household, and that figure represented 79 percent of median household income at the time. 
Today, total government debt plus total personal debt in the United States has blown past the 41 trillion dollar mark.  When you break that down, it comes to $329,961.34 per household, and that figure represents 584 percent of median household income. - The Economic Collapse Blog


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