Could the debt to GDP top 100% soon?

Discussion in 'Economics' started by The Kin, Oct 11, 2008.

  1. On one hand we have the national debt, increasing increasing anywhere from 10 to 100 billion dollars a day as the PPT raises financing. The other hand, our GDP is gonna get its ass kicked so hard that government alchemists will no longer be able
    To manipulate the numbers into a positive spin!!

    Therefore, I think debt to GDP will top 100% by 2010.
  2. don't forget us having to bailout the auto industry and possibly the airliners too.
  3. Many third world countries have debts several times their GDP, and they keep going, as long as they may keep printing and getting foreign credit.

    In some years, maybe a decade, when the mortgage backed debt -acquired by the Fed- comes into equilibrium with home market prices, debt will be drastically reduced.
  4. Japan's debt to gdp is around 150% i believe
  5. oriol88


    you don't need to increase the debt, the fall of the gdp will be strong enough to end in this ratio.
  6. heypa


    Not to worry until the interest on the national debt is larger than the GDP. What ever that is.