The true U.S. national debt as a percentage of GDP is, in fact, nearly 130%. The government adds $4 billion per day to that debt while GDP is stagnating with growth at little better than 2%. Economists Kenneth Rogoff and Carmen Reinhart, after analyzing over 200 years of data from around the world, have concluded that once debt reaches 90% of GDP, a tipping point is reached. Crisis and collapse will ensue.
Take a moment to consider this number: $16,084,425,792,391
At the last count, this is the level of the U.S. national debt. And if that number scares you… it should.
The fiscal and debt situation of the United States today is nothing less than Greece on steroids – with an added dose of political hallucinogens inducing insane denial.
It’s the same insanity that sent international markets up this week on the news that a paltry 30% of Greek voters supported a political party that advocates the country paying its bills and living within its means.
But let’s put this news in its horrific perspective:
In spite of the fact the Greek election results have allayed fears of the country’s imminent exit from the euro zone, swathes of political analysts still believe the move is a mere momentary respite, and that the European Union dream could yet turn to nightmare.
With Spain, Italy and probably France, on the brink of disaster, Greece must now be kept on life support because of the very real threat of economic contagion and perhaps even the demise of the euro and the European Union itself.
Yet, in 2009, Greece’s economy was just 0.40% of world total GDP, and in 2015 the Greek GDP is forecast to be 0.41% of the world total. If that is the potential impact of an economic crash in a country whose economic output is less than 1% of the rest of the world, what do you suppose will follow the economic disintegration of the U.S. government, whose economy dwarfs Greece?
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