Tuesday, October 5, 2010

Debt and and GDP

As a percentage of GDP, debt by sector:
Non-financial business = 50 percent
Financial sector = 180 percent
Households and non-profit org = 100 percent
Public debt(state, local and federal) = 88 percent
The USA total debt is 3.5 times GDP


The data do not support the conservative focus on the federal annual debt and cumulative deficit. Cash flow is where the problem gets critical.  The USA is spending about 50% more than annual revenues and the costs are only going to increase.  Revenues need to go up and future expenses need to be limited for Social Security and Medicare, Military spending and other programs.

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