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…
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.
Diminishing marginal utility of debt anyone?
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.