President Barack Obama is poised to increase the U.S. debt to a level that exceeds the value of the nation’s annual economic output, a step toward what Bill Gross called a “debt super cycle.”
The CHART OF THE DAY tracks U.S. gross domestic product and the government’s total debt, which rose past $13 trillion for the first time this month. The amount owed will surpass GDP in 2012, based on forecasts by the International Monetary Fund. The lower panel shows U.S. annual GDP growth as tracked by the IMF, which projects the world’s largest economy to expand at a slower pace than the 3.2 percent average during the past five decades.
Basically, not only are we spending more than we make as a country, we will be borrowing more than we make in a few years. We are on pace to spend twice as much as we make in a year. That is just will have a disastrous effect on the entire country and cripple the economy for many years to come. We must stop this spending orgy before it's too late.