US Ends 2012 With 103.8% Debt To GDP

Tyler Durden's picture

Previously, when calculating debt/GDP metrics for the US, we naturally assumed some GDP growth in Q4. Following today's GDP data we now know what Q4 GDP is. We also know that, at least on a preliminary basis, it posted a decline on an annualized basis. This means that we now have an official print for US Debt/GDP as of December 31, 2012. The numerator, or debt: $16.432 trillion, or the debt ceiling, which as we know was breached on the same day, and which has yet to be formally raised. The denominator, or GDP: $15.829 trillion. This means that the formal debt/GDP is now 103.8% and growing fast.

Indicatively, this has risen from 76.5% on the day of Obama's first inauguaral address.

And for those who, erroneous, allege that Q4 GDP declined due to US government "austerity", here are the facts: in Q4, the US added some $312 billion in debt. And more to the point, the US government spent a grand total of $907.9 billion in the same quarter. This compares to $877.1 billion a quarter earlier: $30 billion less.

Some "Austerity."

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SilverTree's picture

As silver and gold Pop.

trav777's picture

so at this run rate, what's the total debt delta gonna be under Obama...+12T.

They certainly did stack on new taxes and whatnot, but Bama has already added $6T from 1/20/09 to now.  Funny how all this debt was "destroying the economy" when Busch did it, but now it's "saving the economy from the debt that Busch destroyed it with."

economics9698's picture

126% by 2016, but we have a Black Swan event coming soon.

The Juggernaut's picture

...and Krugman wants MORE gov't/Fed (centralized) spending?  What the fuck is wrong with this meglomaniac?

SamAdams's picture

Krugman clearly understands the correlation between the debt chart and the djia chart.  Both charts point to a very good return for Krugman and the people who do G_d's work....

Sudden Debt's picture

Yep, because every ending is actually also some kind of new begining!

Groundhog Day's picture



Freddie's picture

Hope & Change.  Amerika's stock market reacting like Zimbabwe's did. Oba-MAO is our Mugabe II.

aint no fortunate son's picture

aaaaand cue - equities rally, led of course by AMZN

Say What Again's picture

DOW over 14,000 today.

Then talk about DOW going to 15,000

Chupacabra-322's picture

OK, so when exactly does the shit hit the fan?  Or has it hit already?  Perhaps this is just a phase of uncontrollable explosive diarrhea. 

IridiumRebel's picture

It does when war(coming soon) between the US/Israel vs Russia/Syria/Iran/China......hope you gotta plan.,7340,L-4338964,00.html

SamAdams's picture

The impending false flag information was hacked by someone in malaysia? and posted on 4chan, before making its rounds, round the world.  Not sure they will pull such a deal now that the cat is out of the bag.

unrulian's picture

When they've taken the guns of course

Chupacabra-322's picture

They will get the business end with bullets first.  That's my plan. 

And, judging by the amount of gun sales lately, that's a lot of The American People's plan. 

Temporalist's picture

That chart is going up...the sheeple and momos cheer!

Sudden Debt's picture

Oh... I thought the graph show adults with fulltime jobs...


EscapeKey's picture

More likely, it shows morning show Nielsen TV ratings.

CrimsonAvenger's picture

Or GBs of porn downloaded by the SEC.

Sudden Debt's picture

do you really think those guys have a download CEILING?

Dr. Richard Head's picture

They did, but it was temporarily suspended.....until the 1000^8 - Y yottabyte chip is created, so it shouldn't be suspended for too much longer.

trav777's picture

either you're dyslexic or my laptop is upside down

Cognitive Dissonance's picture

If they can do that in 4 years just imagine what they can do in 8.

Cognitive Dissonance's picture

Plenty of room to go higher.

"Engine room. More steam." - Bernanke

Deacon Frost's picture

Unfortunately CD we run into the 'Diminishing Marginal Productivity of Debt'

centerline's picture

No worries, after it passes zero (already did actually) we get to enjoy economic cannabalism in order to derive sythetic yield.  Fun times ahead.

Deacon Frost's picture

Cannibalism is the operative term here for sure.

Dr. Richard Head's picture

Here is to the day The Bearded Bernanke gets that hockey stick right in his poop hole.

Cognitive Dissonance's picture

You said a dirty word. I'm telling. 

<Promise me you'll never say "The Bearded Bernanke" ever again.>  :)

otto skorzeny's picture

brO blames guns for this

Osmium's picture

"Deficits don't matter" - Dick "Ka Boom" Cheney 

toady's picture

"If I don't get what I want, the terrorists win"

firstdivision's picture

This means we're winning, right?


How much of that debt was to prop up this farce dicotomy that we call an economy?

EscapeKey's picture

Sadly, I think Japan are a shoe-in for the award.

nantucket's picture

erradicate the word "trillion", chop off everone's left foot, eat more kale, and force every citizen to take a course on the architecture of machu pichu.


problem solved.

secret_sam's picture

don't be mockin' on kale.  that stuff rocks.

IridiumRebel's picture

IridiumRebel's Baked Kale recipe



One bag kale

olive oil



wash kale and separate stems from leafy greens and tear into small pieces 

drizzle olive oil and salt

mix that shit

bake at 375 for 20-25 minutes

fucking eat

tip e. canoe's picture

tip e.'s raw remix

same ingredients & prep

put that shit in the dehydrator for 8 hours

(to preserve the nutrients)

fucking eat

tip e. canoe's picture

just make sure its sea salt

table salt is nasty

Dr. Engali's picture

A great pheasant hunter once said.."deficits don't matter".....until they do....I added that last part.

otto skorzeny's picture

there is nothing "great" about that evil halliburton asshole.