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Chart Of The Day: Change In Q1 American Debt And GDP

Tyler Durden's picture





 

Presented without much commentary, because little is necessary: the only ratio that matters for the US economy, the change in US public debt ($359.1 billion) and US GDP ($142.4) in the first quarter, hit 2.52x and rising.

It takes $2.52 in new debt to "buy" $1 of economic "growth"

Source: Debt to the Penny, Commerce Dept

 


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Fri, 04/27/2012 - 09:17 | Link to Comment FOC 1183
FOC 1183's picture

this is posted as Cramer is praising Krugman on CNBC.  Beauty

Fri, 04/27/2012 - 09:21 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

That guy should get a Nobel Prize.

 

Fri, 04/27/2012 - 09:38 | Link to Comment Oh regional Indian
Oh regional Indian's picture

Negative Velocity of Money Champs. Such is how it ends, not with a bang but with a whimper.

The wheels of a bloated civilization grind to a halt. 

Debt bubbles exploding makes me see very ugly pictures...

ori

re-membering-deepwater-horizon

Edit: I just realized KRUGman is GOLDman......Kruger, Krugerrand....see? ;-)

Fri, 04/27/2012 - 09:47 | Link to Comment Hard1
Hard1's picture

Just increase debt faster and GDP can grow at 4%.

Fri, 04/27/2012 - 09:52 | Link to Comment DeadFred
DeadFred's picture

A current rates we double the debt in ~7 years. That means I can have 40% more iPhones, cool!

Fri, 04/27/2012 - 10:10 | Link to Comment Hugh_Jorgan
Hugh_Jorgan's picture

We'll grow our way out... really!

Fri, 04/27/2012 - 10:16 | Link to Comment Cdad
Cdad's picture

Hello fiscal cliff...

Fri, 04/27/2012 - 10:29 | Link to Comment DaveyJones
DaveyJones's picture

fuck, these numbers are pretty nasty

Why do i hear Reinhart and Rogoff in my head.

Fri, 04/27/2012 - 10:43 | Link to Comment Rubbish
Rubbish's picture

I want a refund, I didn't get any of that Big Red on the left.

Fri, 04/27/2012 - 11:01 | Link to Comment Vampyroteuthis ...
Vampyroteuthis infernalis's picture

I love the smell of deflation in the morning..... it smell like...... poverty. Give me my Nobel dammit!!

Fri, 04/27/2012 - 11:37 | Link to Comment Agent P
Agent P's picture

You get the little blue on the right.  The Big Red on the left goes to your children.

Fri, 04/27/2012 - 12:16 | Link to Comment Thomas
Thomas's picture

And the GDP has all those dubious inflation adjustments embedded. What a fucking mess.

Fri, 04/27/2012 - 12:12 | Link to Comment tabasco71
tabasco71's picture

Fred

At the rate at which iphones obsolesce, in 7 years you can probably have all the iphones made 

Fri, 05/11/2012 - 23:35 | Link to Comment matrix2012
matrix2012's picture

Yes, many more iPhones, iPad atau the latest Galaxy things; 52-inch 3-D LED TV or Internet-able LED TV; new 3.0 4WD SUV... feel free to add the long list that builds the strongly pushed forward GLOBALIZATION DREAM...

 

 

"Hello?

Is there anybody in there?

Just nod if you can hear me.

Is there anyone at home?

Come on, now,

I hear you’re feeling down.

Well I can ease your pain

And get you on your feet again.

Relax.

I need some information first.

Just the basic facts

Can you show me where it hurts?

Pink Floyd – Comfortably Numb

 

 

Our civilization has adopted the worst aspects of the two most famous dystopian novels in history – Orwell’s 1984 and Huxley’s Brave New World. The question is whether the population of this country is too far gone to recover. The answer to that question will determine whether the country chooses authoritarian dictatorship or a renewal of our founding principles. Aldous Huxley understood the three pillars of Western civilization fifty years ago and that their destruction would result in a collapse of our economic system:

“Armaments, universal debt, and planned obsolescence – those are the three pillars of Western prosperity. If war, waste, and moneylenders were abolished, you’d collapse. And while you people are over-consuming the rest of the world sinks more and more deeply into chronic disaster.” [Aldous Huxley]

The three pillars sustaining the American empire edifice of never ending war, ever accumulating debt and excessive consumerism are crumbling. The growing corruption and weight of un-payable debt have weakened the very foundation of our grand experiment. The existing structure will surely collapse. My entire adult life has tracked the decline of the American empire. I had become comfortably numb. I came to my senses and began to question all the Federal government/Wall Street/Corporate Media sponsored truths about eight years ago. Many others have also awoken and begun to challenge the false storylines dictated by those in power."

quoted from the awesomely, beautifully written, Jim Quinn of The Burning Platform in Comfortably Numb 

http://www.zerohedge.com/news/guest-post-comfortably-numb

 

A bit more about Aldous Huxley:

Foreword from

Amusing Ourselves to Death

by Neil Postman

We were keeping our eye on 1984. When the year came and the prophecy didn't, thoughtful Americans sang softly in praise of themselves. The roots of liberal democracy had held. Wherever else the terror had happened, we, at least, had not been visited by Orwellian nightmares.

But we had forgotten that alongside Orwell's dark vision, there was another - slightly older, slightly less well known, equally chilling: Aldous Huxley's Brave New World. Contrary to common belief even among the educated, Huxley and Orwell did not prophesy the same thing. Orwell warns that we will be overcome by an externally imposed oppression. But in Huxley's vision, no Big Brother is required to deprive people of their autonomy, maturity and history. As he saw it, people will come to love their oppression, to adore the technologies that undo their capacities to think.

What Orwell feared were those who would ban books. What Huxley feared was that there would be no reason to ban a book, for there would be no one who wanted to read one. Orwell feared those who would deprive us of information. Huxley feared those who would give us so much that we would be reduced to passivity and egoism. Orwell feared that the truth would be concealed from us. Huxley feared the truth would be drowned in a sea of irrelevance. Orwell feared we would become a captive culture. Huxley feared we would become a trivial culture, preoccupied with some equivalent of the feelies, the orgy porgy, and the centrifugal bumblepuppy. As Huxley remarked in Brave New World Revisited, the civil libertarians and rationalists who are ever on the alert to oppose tyranny "failed to take into account man's almost infinite appetite for distractions". In 1984, Huxley added, people are controlled by inflicting pain. In Brave New World, they are controlled by inflicting pleasure. In short, Orwell feared that what we hate will ruin us. Huxley feared that what we love will ruin us.

This book is about the possibility that Huxley, not Orwell, was right.

 

 

_______________

“Consumerism is able to captivate the individual soul in a way that fascism was never able to do.” — Pier Paolo Pasolini

 

Fri, 04/27/2012 - 10:21 | Link to Comment Hohum
Hohum's picture

Yes, more debt so more growth.  I think it's been that way most of my life (born 1965).

Fri, 04/27/2012 - 12:59 | Link to Comment Mentaliusanything
Mentaliusanything's picture

my how young you are. 

It's not getting any better sweet pea. Nixon.... I understand why he did it but sweet mother he never got the hidden story. 

Any way, I do respect Ben B .. the only tool he has left is himself .. and thats one BIG TOOL.

Pity he painted himself into that corner.

The best revenge is to understand that inflation will save us all. until you understand Ying and Yang... the balance.

Ben does not, and its coming, snowflake by snowflake until it take us all out in an avalanche of debt destruction 

Hey Ben don't forget Inflation ... you made a fart in a tornado.

Thank goodness I left

Fri, 04/27/2012 - 10:29 | Link to Comment Hansel
Hansel's picture

Quick, buy some 10 yr treasuries yielding 1.94%.  The taxpayers are good for it!  /not

Fri, 04/27/2012 - 11:59 | Link to Comment eatthebanksters
eatthebanksters's picture

The model of success...shrinking revenues and increasing costs!  Only in Amerika!

Fri, 04/27/2012 - 12:13 | Link to Comment tabasco71
tabasco71's picture

Re "Just increase debt faster and GDP can grow at 4%"

Like China does?

just wondering...

Fri, 04/27/2012 - 09:57 | Link to Comment a growing concern
a growing concern's picture

Of topic- I just went through airport security, and for the first time in my life I long to leave this godforsaken shithole and go somewhere free. Never felt this so strongly before I had my entire body irradiated, had to remove my shoes and belt, and watched some 3 year old have to go through the scanner. A fucking 3 year old. Unbelievable.

Fri, 04/27/2012 - 09:59 | Link to Comment krispkritter
krispkritter's picture

You don't even have to go to an airport to be violated...just sit home and relax;

http://www.guardian.co.uk/commentisfree/cifamerica/2012/apr/26/how-national-security-agency-gone-rogue

Fri, 04/27/2012 - 10:35 | Link to Comment Fish Gone Bad
Fish Gone Bad's picture

Thought crime is the new blasphemy.

Fri, 04/27/2012 - 13:39 | Link to Comment lemonobrien
lemonobrien's picture

USA! USA! USA!

Fri, 04/27/2012 - 10:37 | Link to Comment DaveyJones
DaveyJones's picture

that's exactly what TSA said: "fucking three year old"

Fri, 04/27/2012 - 11:31 | Link to Comment SheepDog-One
SheepDog-One's picture

'Ya mind if I touch ya BALLS sir? I just needs ta check ya ASSHOLE...''  I 'jus needs ta check ya asshole - YouTube

Thats 'america for ya.

Fri, 04/27/2012 - 11:53 | Link to Comment earleflorida
earleflorida's picture

just sitting back and waiting for a ZH [your a big boy, yeah i'm a big boy] plug on SouthPark - 10.... 9... 8..7. 6 

c'mon randy - spanky, and the gang have had it with ya spending their inheritance, and I, the 'authoritum cartman', ain't gonna take it - so, suck my balls!

Fri, 04/27/2012 - 11:38 | Link to Comment NOTfromSanFrancisco
NOTfromSanFrancisco's picture

 

to g c...

That is why some of us have changed our travelling habits drastically. If I can't drive where I want to go, there will have to be a very, very important reason before I will stand in one of those government inspired lines to get my public physical exam again...

Fri, 04/27/2012 - 12:36 | Link to Comment NotApplicable
NotApplicable's picture

I haven't flowm since '99.

Fri, 04/27/2012 - 12:44 | Link to Comment pods
pods's picture

You got me, I think my last time was when you could still bring lube in your carryon, circa 2006.

Fri, 05/11/2012 - 23:50 | Link to Comment matrix2012
matrix2012's picture

No wonder the airlines industry are crumbling!

TSA has been doing the terrific jobs in SECURING the airlines future.

 

Make me wondering how's the tourism business there after the presence of the monster TSA?

Fri, 04/27/2012 - 12:29 | Link to Comment rosiescenario
rosiescenario's picture

Terrorists.......10

 

Fed Bureakrats.......15

 

U.S. citizens..........-20

Fri, 04/27/2012 - 13:25 | Link to Comment Mentaliusanything
Mentaliusanything's picture

Three year olds ..... my God check them all .. remember after the terrible two's they graduate at Three to Hell on Earth. But when they become adults and remember that blue gloved demi God who touched and gave a little squeeze, they become Graduates of ....... Well let us say Home of the Brave but not really pediphile that it matter a shit.

I left before Nixon and I found a place.. a wide open land, brown and flat, wealthy and free, well free enough that you can go five days and not see a Human in a blue glove. In fact I have never seen gloves only friendly smiles

Question .. Why is it Blue or White (the gloves) Conditioning runs so deep it frightens me and allows me to understand that in the camps, why they did not overpower the few. perhaps it was the weakness of hunger. You shall know that answer. 

It has become the same,,, little by little they herd you until your trapped

Fri, 04/27/2012 - 11:32 | Link to Comment Stoploss
Stoploss's picture

BINGO...

It's all about the velocity. Very well done.

The Chairman of the Facist NeoKeynesian Libertarian Party, some how to my surprise, is not pushing the banks to loan quite as strongly as in the previous 2 years. Why??

Velocity... ANY velocity of money at this point in time would be catastrophic instantaneously on a global scale. resulting in immediate, and ultra massive global hyper inflation almost overnight. This is the specific reason the FED cannot move the inflation needle past 1.5%. there is no velocity to allow this to occur, therefore monetary velocity  cannot be allowed to occur, since a tiny amount would result in an immediate inflation spike to 10%, marking the day you stopped commuting and eating. The FED has done an excellent job of destroying itself, much to my pleasure, but now it seems they themselves know the end is near, (you saw that in their faces yesterday).

Additional monetization will be useless, and serve no purpose but to further drive PM's and energy prices into the stratosphere. I think they know that as well, but the politicians don't. They still believe debt is wealth, as long as that is accepted, monetization will continue until the system self consumes.

Good news:

We are there..

Fri, 04/27/2012 - 18:59 | Link to Comment John Wilmot
John Wilmot's picture

Facist NeoKeynesian Libertarian Party

Uh Oh, he went full retard....

Wed, 05/16/2012 - 05:50 | Link to Comment matrix2012
matrix2012's picture

"Additional monetization will be useless, and serve no purpose but to further drive PM's and energy prices into the stratosphere. I think they know that as well, but the politicians don't. They still believe debt is wealth, as long as that is accepted, monetization will continue until the system self consumes."

 

Any slightest thought that the politicians are quite aware of the debt problems, but perhaps they think of REPUDIATING the debt claims one day??? A kind of reset. Zero debt, problems solved!

Fri, 04/27/2012 - 12:26 | Link to Comment Gully Foyle
Gully Foyle's picture

Oh regional Indian

dude you should play with language more, go Joyceian.

"Negative Velocity of Money Chimps"

"Such is how it ends, not with bling but with a wimple"

 

Fri, 04/27/2012 - 12:40 | Link to Comment Stoploss
Stoploss's picture

dude, don't bash me yet. I aint run cross nobody yet that has a clue to what the hell is going on.

DEFINITELY NOT YOU.

Fri, 04/27/2012 - 09:35 | Link to Comment Shocker
Shocker's picture

That chart, so simple but says so much. Great chart!

Our economy still in rough shape, with or without GDP growing. There is really no way around it

.

http://www.dailyjobcuts.com

 

 

Fri, 04/27/2012 - 09:55 | Link to Comment Dr. Richard Head
Dr. Richard Head's picture

$1 DOHllar in new shared debt for us all now brings 39 cents in GDP growth for the well-connected.  Nice!!!!!  Talk about a great ROI.  USA!!! USA!!! USA!!!

Fri, 04/27/2012 - 10:16 | Link to Comment tocointhephrase
tocointhephrase's picture

For the first time in my life, USA!!! USA!!! USA!!!

Fri, 04/27/2012 - 11:44 | Link to Comment NOTfromSanFrancisco
NOTfromSanFrancisco's picture

 

...actually toco...

For the first time in our lives, just like Michelle, we can be proud that Michelle's husband is doing his job so well as a hand puppet here in the good ol' USA...Good ol' USA is the nonsarcastic part... I still do love this country... That's why this all saddens me so much...

Fri, 04/27/2012 - 10:29 | Link to Comment JustObserving
JustObserving's picture

$1 in real debt brings 39 cents in fake GDP growth (since inflation is adjusted down).

Fri, 04/27/2012 - 13:04 | Link to Comment centerline
centerline's picture

In real terms, we crossed over some time ago in the realm that new debt subtracts from GDP.  You are correct that any positive growth is ponzi-based at this point.

 

http://seekingalpha.com/article/195012-debt-the-chart-of-the-century

 

 

Fri, 04/27/2012 - 09:37 | Link to Comment Lost My Shorts
Lost My Shorts's picture

Don't be so harsh.  All they need to do is a 1 for 10 reverse split of the dollar, and the ratio looks pretty good !!  Assterity my aus.  The wizards of econ will make it all OK.

Fri, 04/27/2012 - 09:39 | Link to Comment LedMizer
LedMizer's picture

Cramer should get the Oscar

Fri, 04/27/2012 - 09:41 | Link to Comment toady
toady's picture

Creamer or Krugdude?

Fri, 04/27/2012 - 10:02 | Link to Comment Akrunner907
Akrunner907's picture

Tyler,

 

Do you have the YOY chart for debt and GDP?  It would be interesting to see a moving chart on the X multiplier cost of debt to GDP growth.

 

Thanks.

Fri, 04/27/2012 - 10:13 | Link to Comment Paul67
Paul67's picture

Maybe Tyler has a better source or can confirm but the link below shows the raw data needed to come up with that number.

http://market-ticker.org/akcs-www?post=204980

The movie quote from the Matrix "your living in a dream world Neo" comes to mind.

Key take away; Convert your paper assets (and I use the word asset in this context lightly) into hard assets (i.e. things that would hurt if dropped on your head from a given height) while you still can.

 

Fri, 04/27/2012 - 10:40 | Link to Comment Matt
Matt's picture

A really interesting thing to see is if it works both ways; does a $2.5 cut in government spending only reduce GDP by $1? Unfortunately, we will probably not get to find out.

Fri, 04/27/2012 - 13:05 | Link to Comment centerline
centerline's picture

http://seekingalpha.com/article/195012-debt-the-chart-of-the-century

This might help.    I posted it above, but thought it would be best to put it here too.

Fri, 04/27/2012 - 10:14 | Link to Comment SheepDog-One
SheepDog-One's picture

Cramer should get a Nobel prize trophy shoved straight up his ass!

Fri, 04/27/2012 - 10:35 | Link to Comment DaveyJones
DaveyJones's picture

just found this quote: 

"I would say that her [Carmen Reinhart's] book (This time is Different) with Ken Rogoff on debt crises and financial crises is an extraordinary piece of work."--Federal Reserve Chairman Ben Bernanke, speaking before the House Budget Committee (6/9/2010)

what a sick joke

Fri, 04/27/2012 - 12:25 | Link to Comment Captain Kink
Captain Kink's picture

He never read it.

Fri, 04/27/2012 - 10:53 | Link to Comment Kaiser Sousa
Kaiser Sousa's picture

Hey guys...want to see some really cool anti-Real Money propoganda courtesy of Reuters...

http://www.reuters.com/video/2012/04/26/reuters-tv-will-a-gold-bar-buy-a...

enjoy this stupid ass mother fuckin moron....

Fri, 04/27/2012 - 11:38 | Link to Comment Uber Vandal
Uber Vandal's picture

Perhaps he should have used a 1 ounce Gold Eagle, with the nice Fifty Dollar face value on the coin, and a 1/10 ounce gold eagle, marked five dollars, and he could have had that case of Heineken.

Heineken guy at least understood the value of the metal.

 

Fri, 04/27/2012 - 12:02 | Link to Comment donsluck
donsluck's picture

A wholesale delivery guy would certainly get fired for selling retail. He would have to buy a case to replace the case he sold. He also mentioned he couldn't break the $52. I stopped watching, it's like trying to buy something with a share of Apple ($600).

Fri, 04/27/2012 - 12:19 | Link to Comment Conor
Conor's picture

There is no way Cramer deserves a Nobel Prize!

Fri, 04/27/2012 - 09:23 | Link to Comment slaughterer
slaughterer's picture

What is the QE to GDP ratio in Europe?  Even worse, my friend.  

Fri, 04/27/2012 - 09:29 | Link to Comment CClarity
CClarity's picture

So what if Europe is worse?  The point is that the "capitalist" system is broken.  But it isn't really capitalism so much as creditism.  Growth for the past 40+ years has been built on debt.  Not organic growth.  Debt infused growth.  And what happens when debt stops growing (much less starts shrinking)?  Yep. Implosion of economies.  USA, Europe, China.  Do the math.

 

Fri, 04/27/2012 - 09:32 | Link to Comment SheepDog-One
SheepDog-One's picture

Of course if you said that during the last 40 years you were considered a weird fringe loonie.

Fri, 04/27/2012 - 09:35 | Link to Comment kridkrid
kridkrid's picture

Or an austrian - same thing.

Fri, 04/27/2012 - 09:59 | Link to Comment Dr. Richard Head
Dr. Richard Head's picture

Crazy indeed.  Don't you all know that debt is growth in the land of credit?

Fri, 04/27/2012 - 10:59 | Link to Comment pods
pods's picture

The looks I get from Righties when I tell them that if we embraced austerity now we would instantly realize this depression are funny.

Nobody will admit all this talk of balanced budgets et all is nothing more than mental masturbation.

Debt needs to increase.  When private debt creation stops the government has to step in or the cascade starts.

Makes me chuckle when I think of all my fancy eco professors explaining the business cycle to me.

There is no business cycle, it is all just a funcion of credit now.  

Or more aptly described as milking us cows of our lifeblood by the parasitic banksters.

pods 

 

Fri, 04/27/2012 - 11:19 | Link to Comment kridkrid
kridkrid's picture

Preach it.

Fri, 04/27/2012 - 12:20 | Link to Comment prains
prains's picture

dog

 

i usually find fringe loonies under my truck seat, good for drive thru coffees

Fri, 04/27/2012 - 09:33 | Link to Comment EscapeKey
EscapeKey's picture

Capitalism? WTF?

53% of British GDP consists of government spending. This has increased from 35% in 1999, when the UK ran a 3% budget surplus. Brown turned this into a 13% deficit through outrageous propping up of the state, especially in marginal Labour seat areas.

And yet, somehow it's "capitalism's" fault that we've landed in the current situation. I guess state spending just isn't enough for some, until it's reached 100%.

Fri, 04/27/2012 - 09:40 | Link to Comment LawsofPhysics
LawsofPhysics's picture

Capitalism has not existed for over a hundred years.  Facism has only gotten stronger since the world wars.  Wake the fuck up already.

The socialization of PRIVATE losses continues.  Why has government spending gone up, because private companies pass the losses onto the taxpayer via their representation.  My god, wake the fuck up, "the people" do not have any representation.  One party, for the corporation, by the corporation.

Fri, 04/27/2012 - 09:47 | Link to Comment toady
toady's picture

Ah, the ol' 'ism' debate.

Good to start the day with a cup of coffee and an old friend.

Fri, 04/27/2012 - 09:58 | Link to Comment Bay of Pigs
Bay of Pigs's picture

Taxation without representation.

We have come full circle in the USA. 

Fri, 04/27/2012 - 10:42 | Link to Comment DaveyJones
DaveyJones's picture

exactly, it is old fashioned corruption, greed, and destruction of the very systems of checks and balances  - in government, in capitalism, shit - in nature, that is tearing us down...to ground level 

Fri, 04/27/2012 - 09:46 | Link to Comment Beam Me Up Scotty
Beam Me Up Scotty's picture

He said "Capitalist System".........

 

 

 

 

BWWWWWWWWWWAAAAAAAAAAAAAAAAAAAAHHHHHHHHHHHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAH!!!

 

 

 

Fri, 04/27/2012 - 09:58 | Link to Comment Dr. Richard Head
Dr. Richard Head's picture

It very well could be capitalist to the extent of capitalists being defined as those who are well-connected to the government cronies getting to exeprience the expanded money supply before all of the plebes. 

Fri, 04/27/2012 - 11:07 | Link to Comment pods
pods's picture

I would agree as well.  The logical outcome of capitalism (real world outcome) is capital accumulation and regulatory capture.

As capital accumulates, so does power.  People do not like this, so some sort of regulation is put in place to limit the accrual of power.

Then capital buys those in charge of regulating it and use that power to enhance their power.

People inherently react negatively when someone bashes "capitalism," but the proof is in the pudding.

When people are too uncomfortable with accepting this, they will try and bargain it away as being crony capitalism, and not capitalism.

Crony capitalism is merely a more mature capitalism.

Now I would differentiate capitalism from free markets, because free markets are merely descriptive of a behavior and not a system per se.

Of course, when one entity is in charge of the most commonly accepted form of exchange, there are no free markets.

pods

Fri, 04/27/2012 - 11:12 | Link to Comment Dr. Richard Head
Dr. Richard Head's picture

Greasing the skids to get ahead.  It has become an accepted part of life.  Sad.

Fri, 04/27/2012 - 09:57 | Link to Comment Dr. Engali
Dr. Engali's picture

Convincing the American people that the U.S is a capitalist nation is the second largest lie that the TBTB gets away with. The  biggest lie is that we are a free people. 

Fri, 04/27/2012 - 09:34 | Link to Comment Oh regional Indian
Oh regional Indian's picture

But they're all lying NUMBers and statistics anyways, no? Otherwise there is England, Japan, Greece.... many one eyed fish in this tank.

From 2006 to 2011, India's GDP growth fell from 9.6% to 6.9% on constant price terms.

And that is when both were/are highly fudged.

ori

Fri, 04/27/2012 - 09:41 | Link to Comment Winston Churchill
Winston Churchill's picture

It's not even the GDP/Debt ratio anymore.

Negative marginal utility of fiat.

The end cometh soon.

Fri, 04/27/2012 - 10:02 | Link to Comment Dr. Richard Head
Dr. Richard Head's picture

One could only hope soon is sooner than the extend and pretend they have been able to accomplish over four years by papering over this shit hole economy.  I am truly impressed they have been able to keep the facade going as long as they have.  Of course, the interventions are not as effective for each dollar of debt expansion, but damn they keep the music playing beyond mathematical belief.

Fri, 04/27/2012 - 11:36 | Link to Comment rwe2late
rwe2late's picture

Really?

“the only ratio that matters for the US economy” is debt/GDP?

Perhaps it mostly matters to the financial overlords who (in the words of a once popular song) run this “company store” perpetually making the rest of us sell our souls just to be “another day older and deeper in debt”.

To others, maybe other ratios matter as much if not more:

There is the ratio of wealth and power between the top .01% and everyone else.

There is the ratio of US military spending compared to the rest of the world.

There is the ratio of the imprisoned US citizens compared to the rest of the world.

There is the ratio of the financial sector parasitism to GDP.

What is that “debt”? What is that “GDP”?

Maybe the importance of that debt/GDP ratio, like the fiat money by which it is measured, ultimately exists only in our minds, to constrain our actions, and privilege a few.

Get the priorities straight!

It is impossible to know how real the “debt problem" is without FIRST dealing with the annual trillion dollar global Pentagon,the Fed handouts to banksters, and the protections given to continue the "health care" racket.

Get the priorities straight!

BEFORE gunning for the so-called "entitlements" to the aged and infirm, ... go after the arms merchants, financial parasites, and the unholy alliance of the pharmaceutical and insurance industries.

Get the priorities straight!

Don't try "fixing" the jobs situation without dealing with the Depression caused by all the diversions, misuse and waste by out-sourced labor, militarism, 'Homeland' policing, the neo-Prohibition prison industry, and the decades-long lack of human and physical infrastructure investment.

In fact there isn't much chance of fixing anything without first dealing with the outrageous concentration of wealth and power by corrupt elite tycoons and their corporations.

(though of course if one wants to ignore the above, fix nothing and just continue the fleecing ...)

Fri, 04/27/2012 - 09:30 | Link to Comment Everybodys All ...
Everybodys All American's picture

Cramer and Krugman are the same ... both completely lie in the face of reality. The reality is the debt spending will only get worse and the gdp numbers will continue to slide. But hey we got china Cramer yells.

Fri, 04/27/2012 - 10:45 | Link to Comment bobola
bobola's picture

Is Leonard the monkey still beating Cramer's stock picks...?????

Fri, 04/27/2012 - 10:06 | Link to Comment mayhem_korner
mayhem_korner's picture

 

 

Leverage, muppetz.

Or is it the heralded "multiplier effect"?

Fri, 04/27/2012 - 10:24 | Link to Comment Shizzmoney
Shizzmoney's picture

Watched "Mad Money" for the first time in 5 years yesterday. 

Afetr praising PayPal for being "the future of payments" via debit cards and mobile payments ("I'm bullish on growing electronic NeoFeudalism!"), Cramer admitted on the show that he bought Brooklyn Nets season tix, and expects the team to do "well" next year.

That's all I needed to know to change channel.

Fri, 04/27/2012 - 12:12 | Link to Comment ebworthen
ebworthen's picture

Krugman = Potato with a beard

Cramer = Black Tulip bulb with a beard

Fri, 04/27/2012 - 12:36 | Link to Comment Honey Badger
Honey Badger's picture

What Nat King Cole might say about U.S. debt:

Unsustainable, that's what you are
Unsustainable, though near or far
Like a song of pain that clings to me
How the thought of you does things to me

Never before has something been more

Unsustainable, in every way
And forevermore, that's how you'll stay

That's why darling it's ascertainable
That something so unsustainable
Will become so confrontational too

Fri, 04/27/2012 - 09:17 | Link to Comment Agent P
Agent P's picture

Looks like we made it...

~ Barry Manilow

Fri, 04/27/2012 - 09:45 | Link to Comment Global Hunter
Global Hunter's picture

Looks like we made it to the end

=blur

Fri, 04/27/2012 - 12:07 | Link to Comment Floordawg
Floordawg's picture

WOO-HOO!

=blur

Fri, 04/27/2012 - 09:17 | Link to Comment SilverTree
SilverTree's picture

Gold go pop.

Fri, 04/27/2012 - 09:27 | Link to Comment Comay Mierda
Comay Mierda's picture

gold is about to break out of a descending resistance line going back to 9/6/11

my austrian philharmonics look extra shiny this morning

Fri, 04/27/2012 - 09:33 | Link to Comment SilverTree
SilverTree's picture

Awesome! I [unfortunately] don't have one ozt of gold, however I do have ~245lb of silver. :-)

Fri, 04/27/2012 - 09:51 | Link to Comment jus_lite_reading
jus_lite_reading's picture

That's why I like gold. One quarter suitcase worth is all one ever needs!

Fri, 04/27/2012 - 09:58 | Link to Comment SilverTree
SilverTree's picture

When the S/G ratio drops to less than 20 I will convert. Until then I have it buried in the back 40 with my dog bones.

Fri, 04/27/2012 - 09:54 | Link to Comment SokPOTUS
SokPOTUS's picture

Enjoy carrying that 245 lbs. of metal in your backpack as you hike the woods, post-armageddon-style.  It will be good for swinging at zombies for zombie beat-downs.

Fri, 04/27/2012 - 10:19 | Link to Comment Theosebes Goodfellow
Theosebes Goodfellow's picture

If hiking through the woods post armageddon-style is your game plan, you screwed up. The advantage, (3:1), has always been to the guy holding his ground, not the guy trying to traipse through it. If holding all your PMs in gold is your game plan, likewise. Junk silver will buy bread, not 1/10 ounces of gold. And for zombie beat-downs, let me recommend any caliber that starts with a .4, (or higher). It is always best to keep zombies at least farther away than arm's length, and remember, double-tap. Have a lovely day. :-)

Fri, 04/27/2012 - 10:30 | Link to Comment SilverTree
SilverTree's picture

Right-on.

 

The one event on my "near-future" radar is Fukushima reactor 4. If it goes I will bug-the-fuck-out and not look back.

Fukushima Is Falling Apart: Are You Ready … For A Mass Extinction Event?

http://www.maxkeiseronfacebook.com/fukushima-is-falling-apart.html

Fri, 04/27/2012 - 12:19 | Link to Comment Paul Atreides
Paul Atreides's picture

The background radiation level around the great lakes has been holding around 0.003mR/h since February. If there are any major changes I'll speak up....

FYI that page isn't run by Max Keiser.

Fri, 04/27/2012 - 10:44 | Link to Comment Matt
Matt's picture

I will gladly sell you a loaf of bread for a 1/10th of gold.

Fri, 04/27/2012 - 10:48 | Link to Comment DaveyJones
DaveyJones's picture

the best thing to invest in is yourself, your health, your skills, and your neighbors.

Fri, 04/27/2012 - 13:50 | Link to Comment Imminent Collapse
Imminent Collapse's picture

I don't know, but I've been told, its hard to run with the weight of gold

On the other hand, I have heard it said, its just as hard with the weight of lead

One way or another, one way or another, one way or another, this darkness has got to end

The Grateful Dead

Fri, 04/27/2012 - 09:57 | Link to Comment Bay of Pigs
Bay of Pigs's picture

GOLD and SILVER.

Still the most underowned and undervaluled assets on the planet.

Fri, 04/27/2012 - 09:59 | Link to Comment LawsofPhysics
LawsofPhysics's picture

Yep, just like OIL.

Fri, 04/27/2012 - 12:14 | Link to Comment ebworthen
ebworthen's picture

Exactly.

Our entire food chain is now leveraged on a non-renewable resource.

If anyone thinks there won't be a world war over it they shouldn't eat for a week and see if they don't feel like fighting.

Fri, 04/27/2012 - 09:17 | Link to Comment Sudden Debt
Sudden Debt's picture

It takes $2.52 in new debt to increase $1 of GDP.

SO QE 2.52 TRILLION BENNY BOY!

Fri, 04/27/2012 - 09:24 | Link to Comment ihedgemyhedges
ihedgemyhedges's picture

You think that ratio is bad, it takes about $5000 of credit card spending just for me to get one feel of the kitty......

Advice: stay single.........................

Fri, 04/27/2012 - 09:33 | Link to Comment WonderDawg
WonderDawg's picture

I've followed that advice myself. Not by design, necessarily, but that's what 20 years of heavy drinking will do. It paid off, in an unexpected way, because now I still have all my stuff and trim can be had without too much effort. Strange world, eh?

Fri, 04/27/2012 - 09:36 | Link to Comment Axenolith
Axenolith's picture

EJECT EJECT EJECT...

Fri, 04/27/2012 - 09:49 | Link to Comment Beam Me Up Scotty
Beam Me Up Scotty's picture

PULL UP!!  WHOOP WHOOP!!  PULL UP!!  WHOOP WHOOP!!

Fri, 04/27/2012 - 10:05 | Link to Comment Dr. Richard Head
Dr. Richard Head's picture

Secret Service members get that shit for $30 and a loss of their job. 

You know what they say, "You don't pay a hooker for sex, you pay them to leave."

Fri, 04/27/2012 - 10:52 | Link to Comment DaveyJones
DaveyJones's picture

then how come, after all that money, our same politicians are still around 

Fri, 04/27/2012 - 09:56 | Link to Comment Everybodys All ...
Everybodys All American's picture

That should be the headline. Sadly, no one has any idea how screwed up we are with Bernanke in charge.

Fri, 04/27/2012 - 09:18 | Link to Comment achmachat
achmachat's picture

holy unsustainable batman!

Fri, 04/27/2012 - 09:22 | Link to Comment GeneMarchbanks
GeneMarchbanks's picture

All things are sustainable if you turn a blind eye.

Jus' Sayin'

Fri, 04/27/2012 - 09:40 | Link to Comment Oh regional Indian
Oh regional Indian's picture

But for that you need to have a blind eye, no Gene? What if you've got them both wide open?

Waking up is hard to sustain.

ori

Fri, 04/27/2012 - 10:05 | Link to Comment Dr. Richard Head
Dr. Richard Head's picture

Not if you drink enough. 

Fri, 04/27/2012 - 10:22 | Link to Comment SheepDog-One
SheepDog-One's picture

And right on cue Starbucks announces theyre adding liquor...things are about to get real painful so may as well start drinking in the morning. Mochacinno with 3 shots please.

Fri, 04/27/2012 - 10:24 | Link to Comment Dr. Richard Head
Dr. Richard Head's picture

Talk about shotgun shitting. 

Fri, 04/27/2012 - 11:39 | Link to Comment DaveyJones
DaveyJones's picture

a metaphorical blind eye leads to a literal one

Fri, 04/27/2012 - 09:18 | Link to Comment dizzyfingers
dizzyfingers's picture

No surprise. When the shit hits it's going to splatter widely. Let's hope it takes down the cartel banks once and for all.

I'm getting really sick of finding connections like these:

Costco's bank: HSBC Mexican Drug Cartels Stunning Files Link HSBC Money Laundering ...

Not sayin' Costco's "dirty" but if the shoe fits....

 

Fri, 04/27/2012 - 11:47 | Link to Comment pods
pods's picture

I read a story that the only liquidity that was around in 2008 was drug money.

pods

Fri, 04/27/2012 - 09:18 | Link to Comment bingo was his name
bingo was his name's picture

Bullish - I'm long printers and ink

Fri, 04/27/2012 - 09:18 | Link to Comment monopoly
monopoly's picture

And we are just getting started. Looks like the 5th inning in a double header. What a freaking disaster we are. And AMZN is up 34 dollars on lower margins, lower profits and lower guidance. What more can one say.

Fri, 04/27/2012 - 14:35 | Link to Comment Bam_Man
Bam_Man's picture

I noticed that too. Is this a great country, or what?

Fri, 04/27/2012 - 09:19 | Link to Comment Jason T
Jason T's picture

America the beautiful.  

Fri, 04/27/2012 - 10:16 | Link to Comment Dr. Richard Head
Dr. Richard Head's picture

O beautiful when toner dries,
For marginal GDP gain,
For growing debt through money supply

Savers sucked down the drain!
Amerika! Amerika!
Ben prints his currency
And drown thy good with debthood
From plebe to fucking plebe!

Fri, 04/27/2012 - 09:19 | Link to Comment Belarusian Bull
Belarusian Bull's picture

And if you consider that gdp gwows not only from public debt taken, the ratio is much worse.

Fri, 04/27/2012 - 09:19 | Link to Comment Seasmoke
Seasmoke's picture

My not even here yet grandchildren are pissed

Fri, 04/27/2012 - 09:21 | Link to Comment qussl3
qussl3's picture

Well............

If we could just get enough capital to flee from Europe, Benny would only have to print maybe a buck for every buck of GDP.

Need to find a way to screw up the German economy tho.

Maybe.....

Fri, 04/27/2012 - 09:21 | Link to Comment jus_lite_reading
jus_lite_reading's picture

This is clearly a very sustainable and viable system we have going here... needless to say its also very bullish for the stock ponzi.. and that's why certain "people" want to keep the status quo going indefinitely even if it means mass social unrest leading to collapse... 

 

Fri, 04/27/2012 - 10:05 | Link to Comment Uchtdorf
Uchtdorf's picture

I wish there was a way for us to check back in after the "mass social unrest leading to collapse" to see who of us made it through alive. Everyone, please keep prepping.

Fri, 04/27/2012 - 11:53 | Link to Comment BooMushroom
BooMushroom's picture

I have been told its called ham radio, and you can get a whole setup for anywhere between 2 and 10 ounces of gold. Don't forget a generator to power it.

I'm pretty sure after the Internet goes down, any ZHers will know one another through the code phrase "Collapse, bitchez!"

Fri, 04/27/2012 - 09:21 | Link to Comment alexwest
alexwest's picture

its worse..

one should have excluded gov deficit spending from GDP, and then calc the ratio.

alx

Fri, 04/27/2012 - 09:40 | Link to Comment kridkrid
kridkrid's picture

it's even worse than that... one should have excluded ALL deficit spending from GDP.  Which isn't to say that borrowing money is bad... but creating money out of thin air is.  What we should really do is stop measuring GDP.  What we really, really should do... scrap our monetary system and start over... which will happen eventually, anyway.

Fri, 04/27/2012 - 09:22 | Link to Comment Village Smithy
Village Smithy's picture

I'm pretty sure if they just sent checks to us all the ratio would be better. Then the money would get into the economy. With QE the money is just padding corporate wallets waiting to be flush with cash when everything has bottomed.

Fri, 04/27/2012 - 09:22 | Link to Comment SheepDog-One
SheepDog-One's picture

Damn, well obviously the problem is theyre not printing fake money fast enough!

Fri, 04/27/2012 - 09:23 | Link to Comment slaughterer
slaughterer's picture

Let's "slow jam" this ratio to the minions.  

Fri, 04/27/2012 - 10:20 | Link to Comment krispkritter
krispkritter's picture

Ben's already ordered 2.52 more printers...gots to keep that ratio growin'...

Fri, 04/27/2012 - 09:23 | Link to Comment catladdy
catladdy's picture

Central Planning ponzi.

Fri, 04/27/2012 - 09:23 | Link to Comment spastic_colon
spastic_colon's picture

europe green 1+% so the US will also be 1+% green today.........

o/t if you don't think the facebook IPO will be a success...think again

  • House ignores veto threat, passes cybersecurity bill
  • everything is bullish!

    Fri, 04/27/2012 - 09:30 | Link to Comment jus_lite_reading
    jus_lite_reading's picture

    Yeah isn't that some shit!! You can veiw the traitors who voted yes here : http://www.govtrack.us/congress/votes/112-2012/h192

    A bunch promised they wouldn't vote and they did...

    In other news... Romanian gov't collapsed this morning...

    Fri, 04/27/2012 - 09:45 | Link to Comment theTribster
    theTribster's picture

    Fing scumbags, won't be long ZH is perpetually off-line. The entire system is so corrupt absolutely nothing can be believed, especially from gubmint and especially from congress or the president. All we can hope for is that when things finally crash the revolt - 300 million strong heading to the state capitals and dc, with weapons and pitchforks.
    Like an army of red ants destroying everything gubmint and multi-national corporatations have created. Then we take ALL of their assets, everything they have. Politicians, CEOs, wall street dicks, lose everything and then get sentenced for treason of the highest order. Do it like reality tv where American can vote for they get executed - a number one hit worldwide.
    Whatever we can do to destroy everything they have created is what has to be done, we will have to build a new global society....looking forward to it.

    Fri, 04/27/2012 - 10:11 | Link to Comment jus_lite_reading
    jus_lite_reading's picture

    >>"Do it like reality tv where American can vote for they get executed - a number one hit worldwide."<<

     

    Ever see The Running Man?

    You should...

    Fri, 04/27/2012 - 09:24 | Link to Comment LawsofPhysics
    LawsofPhysics's picture

    Expected result from a failure to understand exponential equations.

    So how is that fractional reserve banking working out for ya?

    Fri, 04/27/2012 - 09:28 | Link to Comment SheepDog-One
    SheepDog-One's picture

    They cant find any more suckers to bleed dry. They may be able to ramp vapor stocks, but fractional reserve lending will be getting downsized big time. Killed the Golden Goose.

    Fri, 04/27/2012 - 09:25 | Link to Comment El
    El's picture

    When we begin to rebuild, and TPTB want to institute another fiat currency in the place of the one that just collapsed, we can not let them. Better yet, let's not let them be TPTB anymore, either. Okay?

    Fri, 04/27/2012 - 09:29 | Link to Comment SheepDog-One
    SheepDog-One's picture

    Yep, lets start on that!

    Fri, 04/27/2012 - 09:41 | Link to Comment kridkrid
    kridkrid's picture

    This!  This is all that matters... everything else is deckchairs.

    Fri, 04/27/2012 - 10:32 | Link to Comment Dr. Richard Head
    Dr. Richard Head's picture

    I wish there was a way we could get a protest going in front of one of the central banks where we could get a symphony to play Neare My God to Thee.  This song was one of the final songs played by the band as the Titanic sank.  It would be quite the sight to see that play out as a protest.

     

    http://www.youtube.com/watch?v=r4LyoUGxVd8

    Fri, 04/27/2012 - 09:46 | Link to Comment Dr. Engali
    Dr. Engali's picture

    The only way to prevent that is TPTB must not be allowed to be TPTB...otherwise another fiat is exactly what we will get.

    Fri, 04/27/2012 - 09:26 | Link to Comment SoNH80
    SoNH80's picture

    At least the last time peacetime deficit spending was this out of whack, we got the Western dam system, the Golden Gate Bridge, CCC park and forestry projects that have lasted for 70+ years, WPA road building, schools, hospitals, swimming pools, post offices.  What do we have to show for it now?  Pointless wars and another (substandard) layer of blacktop on the Interstates?

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