Matt Blackman makes an interesting point, but he neglects to mention that MOST of that TCMD is money we owe to ourselves.
So are you saying then that total credit market debt of $53 trillion (Q1-09) which is 375% of GDP and has grown 35% faster than GDP since 2000 is a good thing? And is such a situation sustainable?
Here are some fun numbers. Take TCMD of $53 trillion and add total unfunded liabilities of $59 trillion (usdebtclock.org) = $112 trillion.
Now divide by the current estimated number of US households of around 118 million.
Total = $950,000 per US household (unless I've misplaced a zero somewhere). A sobering number but what is more sobering is the rate at which total debt is growing relative to national economic output.
Chart US Treasury international capital flows (line 30) of the Treasury report and you will see 2 things - 1) A strong negative trend and 2) A rapidly widening gap between US government monthly deficit demand and the supply of Treasury buyers (see 4th chart at tradesystemguru.com/co.../ ).
Given the size of debt (govt and otherwise) and the rate at which its growing, how long before debt demand outstrips the supply of dollars from those buying Tbonds? Or is that a healthy thing as well? Aug 22 03:17 AM