Thursday, 9 August 2012
Debt to GDP is misleading, your personal debt can't be measured against a collective measure such as the GDP so why should a governments debt be matched against it?
The figures shown are reasonable approximates due to conflicting numbers on various reports. And since I do not trust the Democrats accounting methods I'm certainly not relying on their official reports.
Shown on the graph below is the United States yearly GDP, The amount of debt so far and the amount of the governments’ yearly income.
The debt is usually referred to as around 101% of the GDP. It is actually nearly seven years’ worth of government revenue and costing the US $1.2 Billion Daily a day in interest.
Countries like Greece, the UK, Ireland and Italy to name a few also have massively high debts and look at where they are now. The UK and the US are teetering on economic disaster and the others have had to be bailed out and are slashing services and pushing the cost of these disastrous debts onto their citizens, many of whom are in the process of losing everything. everything.