Wednesday, June 29, 2011

350% Debt

The number that's killing the economy -

Total US private and public debt to GDP ... 350%. 3.5x amount of debt as GDP ... the last 3 years, even though the government hasn't helped any, we lowered it from 370% to 350%

Prior to the great depression? 300% ... 3x.

Prior to 1870's depression? 166%

When you as a people, corporation or government take on too much debt, you have to keep working hard to create wealth and use a good deal of it to pay down your debt. There really isn't any other good alternative.

Note to folks that want to keep spending. 1st rule of holes. When you are in a hole, STOP DIGGING!!!

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