| Submit your comments on this article |
| Economy |
| U.S. Debt Now Surpasses 2010 GDP |
| 2011-08-06 |
| The U.S. Treasury Department came out today with its Debt Position and Activity Report for July. The news is bleak. With the additional $238 billion the Treasury immediately borrowed when the debt ceiling was raised on August 2, total current debt now exceeds 2010 gross domestic product (GDP) for the entire United States. Debt at these levels is why Moody’s and Standard & Poor’s is concerned enough to be considering a downgrade of their credit ratings on U.S. debt. Debt as of July 31 totaled $14.342 trillion. That was made up of $9.756 trillion held by the public and $4.587 trillion the U.S. government owes itself (intergovernmental borrowing, largely from the Social Security and Medicare trust funds to the general fund). GDP—the value of all of the goods and services produced in the United States—in 2010 was $14.5265 trillion. With the Treasury’s additional borrowings of $238 billion so far in August, the total of all debt outstanding has now increased to $14.5807. That’s $54.2 billion more than average 2010 U.S. GDP, the last year for which we have final estimates on GDP from the U.S. Department of Commerce. This is a noteworthy event. It is going to be a very long time before the politicians in Washington are able to pay this debt back with interest. They should at least not be borrowing more. One wonders how they would like to mark this new milestone on the road to economic ruin. They can’t hide it. Maybe they will want to pass out Dumbo dolls to commemorate the $14.5807 trillion elephant in the room. |
| Posted by:tipper |
| #4 And...taking even the high recent valuation of Gold, the debt is higher than the total value of all Gold mined in history. There is no going back to the Gold Standard. |
| Posted by: Thumper and Tenille2812 2011-08-06 16:05 |
| #3 Not really. |
| Posted by: Steve White 2011-08-06 10:46 |
| #2 Borderline. |
| Posted by: Bobby 2011-08-06 08:56 |
| #1 How many bodyguards does the average Congress-critter have? How do they protect their families and their homes? Its not necessary since they are so beloved by all. Its unthinkable, of course. They do, after all, represent the interests of the People. Ask yourself how much the average one makes in MONEY every year for doing such a good job for you, the average taxpayer. But what would we replace them with, when all is said and done? More suits and the same old silk ties? And some are there for life if they want it. Nancy and Harry are guaranteed a job. John Kerry ( big salute ) is a Leader. And Al Sharpton, or is that Al Frank...well whatever...they all look the same at a distance. How many are YOUR friends? Taking care of business. And you aren't a sucker, are you? But somebody sure is.... |
| Posted by: de Medici 2011-08-06 08:14 |