Quoting the Crisis22/09/2009
![nonolet:
As [the following] chart shows, the US debt-to-GDP ratio recently soared to an all time high of 370%, meaning that for every $1 of output we produce, we have borrowed $3.70. This compares to a long-term debt-to-GDP average of about 150% ¶ Last time we went on a massive debt binge, in the 1920s, our debt-to-GDP ratio hit a relatively mild 250%, and we spent the better part of two decades (and the Great Depression) working it off. Many economists think the same thing will happen this time around. (via Mish’s Global Economic Trend Analysis: Henry Blodget vs. Ken Fisher “We Need More Debt”)](http://1.media.tumblr.com/tumblr_kqcxsveMXs1qzbrvro1_500.png)
As [the following] chart shows, the US debt-to-GDP ratio recently soared to an all time high of 370%, meaning that for every $1 of output we produce, we have borrowed $3.70. This compares to a long-term debt-to-GDP average of about 150% ¶ Last time we went on a massive debt binge, in the 1920s, our debt-to-GDP ratio hit a relatively mild 250%, and we spent the better part of two decades (and the Great Depression) working it off. Many economists think the same thing will happen this time around. (via Mish’s Global Economic Trend Analysis: Henry Blodget vs. Ken Fisher “We Need More Debt”)
Photo posted at 15:04
