United States and its creditadiction
- Posted by Marc on January 30th, 2009 filed in economy
U.S. total credit market debt (1922-2008)
The total debt of the United States was $49 trillion (March 2008). This represents almost 350% of U.S. GDP, which is about $14 trillion.
As you can see in the shocking figure, in the 20s, the huge increase in U.S debt probably contributed to the subsequent crash of 1929 and the great economic depression of the 30s. As you can see in chart, virtually all debt began to generate from 1982, coinciding with the beginning of Ronald Reagan U.S. presidency and Paul Volcker FED’s mandate, who was forced to raise interest rates above 15% by the second oil crisis and the consequent rise in prices. Paul Volcker is one of the heads of the economic team of advisers Barack Obama.
U.S government debt was estimated at 72% of GDP, the rest up to 350% must be found in the hands of individuals and companies. China and Japan each has 20% of U.S. debt, so it financed about 40%. England has 11.8% and Hedge Funds about 6.5%.
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October 2nd, 2009 at 7:15 pm
[...] total debt (private and public) is 350% of their Gross Domestic Product (GDP) in 2008. Of course, this ratio will increase in the next 24 [...]