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Let's give an update on the Zero Hour Debt chart, which basically tells us that the economy will get into stagflation and later on into hyperinflation. The reasoning behind this is that we will need an unlimited amount of debt to have growth in the economy. If we don't print money, we will have negative nominal GDP and this is what the federal reserve is terrified of, because when the economy contracts, the whole system collapses (Chris Martenson's Crash Course). I highly recommend everyone to watch Chris Martenson's Crash Course on his website.

The chart below was produced by another SeekingAlpha contributor August 2011 and goes to 2009. We are now in 2012 and it's time to update the chart.

(Click charts to expand)

Zero Hour Debt

First we take the Total U.S. Public Debt (See Chart 1), which already has overtaken Total U.S. GDP. As Debt-to-GDP is 100%.

Total U.S. Public Debt

Q1 2009: $US 11.55 Trillion (March 2009)

Q2 2009: $US 11.91 Trillion

Q3 2009: $US 12.31 Trillion

Q4 2009: $US 12.77 Trillion

Q1 2010: $US 13.20 Trillion

Q2 2010: $US 13.56 Trillion

Q3 2010: $US 14.03 Trillion

Q4 2010: $US 14.27 Trillion

Q1 2011: $US 14.34 Trillion

Q2 2011: $US 14.79 Trillion (June 2011)

Chart 1: Total US Debt

Secondly let's take a look at U.S. GDP growth (See Chart 2). GDP has been growing steadily in the U.S., although most of U.S. GDP is just consumption. You might think this is a very steady growth, but we will see later on that Total U.S. debt has been growing much faster than GDP.

GDP Growth

Q1 2009: -5.20% (March 2009)

Q2 2009: -1.10%

Q3 2009: 1.90%

Q4 2009: 4.90%

Q1 2010: 5.50%

Q2 2010: 5.40%

Q3 2010: 3.90%

Q4 2010: 4.20%

Q1 2011: 3.10%

Q2 2011: 4%

Q3 2011: 4.40%

Q4 2011: 3.90% (December 2011)

Chart 2: US GDP Growth

For our calculation we need the nominal GDP numbers for the U.S. (See Chart 3).

U.S. Nominal GDP

Q1 2009: $US 13.89 Trillion (March 2009)

Q2 2009: $US 13.85 Trillion

Q3 2009: $US 13.92 Trillion

Q4 2009: $US 14.09 Trillion

Q1 2010: $US 14.28 Trillion

Q2 2010: $US 14.47 Trillion

Q3 2010: $US 14.61 Trillion

Q4 2010: $US 14.76 Trillion

Q1 2011: $US 14.87 Trillion

Q2 2011: $US 15.01 Trillion

Q3 2011: $US 15.18 Trillion

Q4 2011: $US 15.32 Trillion (December 2011)

Chart 3: US Nominal GDP

If we divide nominal GDP growth by Total U.S. debt growth we can calculate how much GDP we will get by adding 1 U.S. dollar of additional national debt (See Chart 4). If we take a look at the trendline, we are around 0.2 on average now. If we extrapolate this chart, we approach absolute zero hour at the end of 2012. Then we will need massive inflation in the U.S. to sustain growth and the federal reserve will have to print money like no tomorrow.

Notable is that we saw a little dip in 2008, where GDP went negative. A system collapse was imminent. Luckily the federal reserve helped the banks getting back on their feet. Nevertheless, the trend is still down. If we keep this pace, we will again see negative GDP in 2013. And there is nothing the federal reserve can do about it. It can print unlimited amounts of money, but it won't help the economy and it won't grow GDP. The only way to protect yourself is buying gold PHYS, GLD and silver SLV, and PSLV.

That's what Zero Hour is all about...

Chart 4: Nominal GDP Growth divided by Total National Debt Growth
Source: Zero Hour Debt In 2013