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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Dr. Engali's picture

That was sarcasm otto....I really didn't think I need to add the tag after this long.

Nobody For President's picture

Though I do believe it was grouse, dear Doctor, but no mind. It was really 'hunting partner'...

TotalCarp's picture

I cannot wait for Krugfuck to start making rounds on tv saying "see we should print more!"

The insanity shall not stop. Minds are made up. Battle lines are drawn. The end is indeed approaching. (mind you i am the one who usualy argues here that it will take waaay longer then most here think)

Dr. Engali's picture

Admittedly I have been surprised how long they have been able to hold it together. Now I'm to the point were it wouldn't surprise me if we are taliking about the same things 10 years from now.

TotalCarp's picture

Yes doc. All bets are off really. Moral of the story is obvious.. You cant "buy" even nominal growth anymore. But.. It appears you can buy a few more months of systemic stability. Then a few more.. Then a few more.

Very curious to see what bernank mumbles today. Gold clearly made up its mind for this afternoon.

Dr. Richard Head's picture

10 moar years?  Fuck me, I sure hope not.

centerline's picture

Well, they are pulling out all the stops to convince everyone that everything is okay right now.  Since that isn't working so well, I suppose plan B is to make people think that they can keep the ship from sinking for a very, very long time - providing plenty of room for repairs to be made.

Seems to me that all indicators point towards the lower decks being hopelessly flooded.

Afrispaans's picture

It happens faster than you'd think. One moment your wife is chartering private planes for a weekend's shopping in Paris, and the next your country has a total of $217 with which to start the year.

trav777's picture

every jurisdiction run by this demographic is merely ONE election away from a Mugabe.  Detroit already had a few of them.  It's always the same.

I pitched in $30 to get into Zimbabwe back at the end of 2012; they're lucky all those japanese tourists were buying double entry.

I smashed on some ho from harare; thought she was british.  Apparently, people still work there and there are actually some operating businesses for the time being.

Ham-bone's picture

Growth is

youngman's picture

I wonder if this will affect Moochelle´s travel plans???

trav777's picture

long as they keep runways paved, she's good to take AF1

Headbanger's picture

I don't know if I should laugh, cry or throw up from seeing how dumbed down

this country has become with all this BS

StychoKiller's picture

Yer avatar knows what to do... :>D

Sudden Debt's picture




machineh's picture

Don't worry, he's still available on a consulting basis!

Of course, it's gonna cost us ....

Inthemix96's picture

Dont worry folks follow the lead of the "Co-alition" over here.

Just do like we have with our in-bred child molesting parasites and introduce the "BedRoom Tax" and as you will so shortly see, these "Difficult Decisions" will pay off and return us all to sanity, sorry prosperity.

StychoKiller's picture

This "bedroom tax," is it per inch?  Yeesh, talk about deflatin'! :>D

Sudden Debt's picture






ejmoosa's picture

We nees the debt to profit ratio.  Because that's how many years we will have to work to pay back this debt.

I calculated it and the ration is 835%.

It would take 8.35 years to pay back the Debt IF you took all profits from small mom and pop businesses to major corporations.  

Think about that for a moment.

IridiumRebel's picture

Motherfucking sustainable!

secret_sam's picture

Reagan proved deficits don't matter, anyway.

toady's picture

Whenever I hear that one I wonder, who did he prove it to? The American public? An esteemed group of economists? The UN?

Is there a written document, like the constitution or emancipation proclamation, that states in clear language why or how deficits don't matter.

If so, can my lawyers use said document(s) to prove my deficits don't matter?

secret_sam's picture

He proved it to "history."

BinAround's picture

Does anyone know if student loans are included in the Federal spending data that creates the deficit?  It looks to be about $100bln of lending in 2012.

luckylongshot's picture

Does anyone still believe official debt figures?...and this one in particular as it was calculated without including unfunded liabilities. The range of debt estimates goes from the official (partial) $16 Trillion to over $200 Trillion (impartial)...Am I the only one with doubts about official partial figures that overlook unfunded liabilities?

climber's picture

It is hard to believe that a man is telling the truth when you know that you would lie if you were in his place. - H. L. Mencken

alfbell's picture

Oh, we'll make it all the way up to a 350% debt/GDP ratio, or higher. I ain't worried. The status quo will continue for a long long long time. Smooth sailing for years to come.

azzhatter's picture

No worries mates, Barry Obuttfuck has it all under control. He's working that gay marriage thing right now

azzhatter's picture

The problem with Santelli is he doesn't realize how devious these pricks are. They care nothing about the future of the country, just keep it sustained until they check out. These fuckers are not looking for a solution to problems, they are looking for ways to run from a problem. 90% of americans have no idea and couldn't care less how devious these fuckers are, just don't cancel dancing with stars or Idol. We are in a fucked up place and I look at my grand children with pity for what they will reap.

StychoKiller's picture

Buy the li'l nippers some Kruggerands...

alfbell's picture



The problem is not economics or economists... not politics or politicians... or education or teachers... or capitalism or socialism or cronyism or fascism or totalitarianism or egalitarianism... or sociology and sociologists... or science or scientists... or mathematics or mathematicians... or immorality and crime or criminals... or evil or monsters...

The problem is man's total lack of understanding of the human mind and himself.

THIS is what man has been missing, avoiding, not confronting and failing to place the proper importance on since he's been here.


Curt W's picture

Wait the debt has been stuck at $16.432 Trillion for over a month.

They are spending pension money now.

The day they raise the ceiling, that number is going to jump up by several hundred billion.

natronic's picture

So this story says Debt is 72% of GDP

But really we know it's 103%.  Basically right now you can't even trust trusted news sources because they are getting bad info to write stories.  All the "smart" people can't get a grip on what is going on.  While us stupid uninformed people know exactly what is going on and are buying gold/silver like crazy.  The world will not survive the crash of the dollar.  The US is 5% of world population but 30% of the wealth. 

FSM_47's picture

Obama is a giant hemorroid  on the body-politic

Me_Myself_and_I's picture

Hey why don't we just pay off the debt with 16 different trillion dollar coins commissioned from the National Mint (marianas).. using actual platinum recovered from the world trade center site?

That would be super patriotic, and clear up this little mess of the debt, stat.

DowTheorist's picture

Excessive debt may be finally awakening the bond vigilantes. The BLV (Long-term bond term bond ETF) /GLD ratio is turning bearish, which denotes relatively stronger gold. Here is the vital chart to look at: