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US Debt/GDP Hits Post WW2 High 99.5% Following $55 Billion Overnight Debt Increase: Total Debt Now Over $15.1 Trillion

Posted By admin On December 2, 2011 @ 4:55 am In Money Watch | Comments Disabled

Zero Hedge [1]
December 2, 2011

It seems like it was only yesterday [2]that we celebrated 15,OOO,OOO,OOO,OOOBAMA day. Two weeks later, we are now well over 100 billion in debt over this historic landmark, or $15.11 trillion to be precise [3], following the predicted $55 billion increase in debt with the settlement of all auctions from last week. And aside from the mind-staggering rate of new debt increase why else is this number notable? Because as we learned 10 days ago [2], total Q3 GDP in current dollars is $15.18 trillion. In other words, US debt/GDP is now 99.5%, the highest it has been in the post WW2 period, and rapidly rising. What is worse is that the delta to 100% debt/GDP is only $70 billion: this is about half of the next two weekly gross issuances of 3,10,30s and 2,5,7s of about $160 billion over the nexttwo weeks. [4]In other words by the end of 2011, debt/GDP will finally be a triple digit number percentage. And the other notable thing is that the debt limit still is $15.194 trillion. It is ironic that the economic growth ceiling and the debt issuance ceiling are now one and the same: if the the debt target number does not rise neither will the US economy. Q.E.D.

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URLs in this post:

[1] Zero Hedge: http://www.zerohedge.com/news/us-debtgdp-hits-post-ww2-high-995-following-55-billion-overnight-debt-increase-total-debt-now-o

[2] only yesterday : http://www.zerohedge.com/news/its-official-total-us-debt-passes-15-trillion

[3] 15.11 trillion to be precise: https://www.fms.treas.gov/fmsweb/viewDTSFiles?dir=w&fname=11113000.pdf

[4] two weeks. : http://www.treasury.gov/resource-center/data-chart-center/quarterly-refunding/Documents/auctions.pdf

[5] Image: http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2011/10/Total%20Debt.jpg

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