In for a penny…

Nothing new to the three people that read these pages but, since I seem to have been shaken out of my torpor, here are two pictures for anyone that has a hand in peddling the new, new, new EFSF…

Below is the graphic representation of the progression of GDP in the USA since 1971
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Below is the graphic representation of the progression of Public Debt in the USA since 1971
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And now for the million Dollar question.

How can more of the second graph help the first graph improve?

Answer: it cannot.

Since 1971, Public debt went from about $0.5Trillion Dollars to today’s $15Trillion.

Notice however that in the same span of time, GDP went from a healthy $4.5Trillion to today merely plodding pari passu with public debt.

Hello?

Diminishing marginal utility of debt anyone?

ADDENDUM

I forgot Swarm USA’s graphic depiction of the combination of the above two dynamics to given an unforgettable picture that should enlighten even the most willfully somnolent politician.

http://www.swarmusa.com/vb4/content.php/282-THE-Most-Important-Chart-of-the-CENTURY

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3 Responses to “In for a penny…”

  1. Pat Donnelly Says:

    It really is a slow mo train wreck, so there is little to add.

    All that is new is the timing for each domino….

    I suspect that America is now aware that Germany has figured out that their interests diverge …. !

  2. guidoamm Says:

    Thank you Roger I am humbled and grateful… :)…

  3. Roger Glyndwr Lewis Says:

    As one of the 3 Guido, Its nice to see you take up your virtual pen again!

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