The chart behind the curtain will probably accomplish that. I snagged it from some econ blog I happened across. It’s kinda big and might mess up the formatting here for those of you with smaller screens, but I dare not shrink it further, as it’s barely legible as is.
This graph presents quarterly calculations for total credit market debt as a percentage of gross domestic product (GDP).
The last datum included is for 3/31/08. I’m not sure which is more disturbing—the fact that the last calculation showed credit at 350% of GDP, or the fact that over the entire history of this graph, the figure has never been below 100%.
If You Really Want to Worry About the USSA ...
"I'm not sure which is more disturbing"
I vote for the part where the only time it spiked this high before was in the 1930s, when the "solution" was to switch to a more socialist form of government. Are these the death throes of socialism or are the conditions now ripe for people to seek even more nanny government help?
You have an excellent point.
That spike is impossible to miss, isn’t it?
With respect to your question, given all the bailout chatter, it seems that things are leaning toward the latter ... but that can’t continue in perpetuity. Someday either someone wises up and the accounts start getting paid, or this country defaults. Wouldn’t a lot of “banana republic” leaders like to see that happen?
Scary, but not surprising
I find it a little disturbing that you can almost track the graph in terms of politics and who was in charge of what when; the skyrocket to space with "Star Wars" and Reagan and Bush I, then the "slowdown" with Clinton being the small saddle in the current spike.
Just a thought...
Yes, it is indeed disturbing in many ways, but I'm not sure what it means for individuals. The GDP of the whole country really has very little to do with my personal productivity or consumption, and I have no debt at all...
Even in the worst wars, floods, epidemics, earthquakes, famines, etc... the majority of the people survive and go on to rebuild their lives, usually in spite of the government and all their folly.
I don't discount the problems. I also don't dwell on them. I'm spending time, effort and resources preparing the best I can to survive whatever of those things happen, if they happen, and live to the best of my ability with peace and joy in the meantime.
Maybe we worry about it too much sometimes? :)
Sometimes.
I think I understand your points, and largely concur. My primary point in posting the graphic is to emphasize the aggregate over-reliance on credit, by the federal government, state and local governments in many places, and by individuals as well. Government credit is backed mostly by faith in the various entities, as they create nothing of value and rely on theft to fund themselves. Even the most responsible, self-reliant, productive individuals are or will soon be feeling the repercussions of this love affair with credit, as it impacts everything that has to do with the USSA FRN, for starters.
Just one word...
Mallcity