Chart of the Day

us-debt-graph-2020.jpg
 
Compound interest increases principal exponentially

Could you recast that graph on a logarithmic scale?
 
Now the bad thing is that debt is compounding at 8.6% and GDP is 2%, but interest rates are 1/3 of what they were so it is manageable so while debt will double by 2027 GDP wont double until 2055
 
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Jerome Powell 10/30/2019 : We would have to see a persistent and significant rise in inflation BEFORE we would even consider moving interest rates up again.

So, with that ammunition, one would be wise to assume the way out of the debt conundrum is by inflation
 
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But what was being estimated a year ago? 9% earning Growth on Average:
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The interesting thing of this chart is it is "Operating Earnings" not GAAP earnings. Actual GAAP earnings over the period from 1991 to 2019 grows by 5.5% per year (difference over the time period overstates ending earnings by 52% in 2019. That is the effect of management "adjustments", PE of the S&P500 in 1991 versus GAAP was 11 in 2019 it is 22.80
 
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I don't know how a chart could be made from this, but....

In 1980, the TOTAL National Debt... not month or year... but the total National debt was under one Trillion dollars. It took 234 years to reach that level.

Last month, the national debt increased by 134 Biilion dollars in one month which would work out to about 1.6 Trillion dollars in a single year.

BTW.. we just reached 23 trillion two days ago.

Someone said "numbers is hard" :cool:
 
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I don't know how a chart could be made from this, but....

In 1980, the TOTAL National Debt... not month or year... but the total National debt was under one Trillion dollars. It took 234 years to reach that level.

Last month, the national debt increased by 134 Biilion dollars in one month which would work out to about 1.6 Trillion dollars in a single year.

BTW.. we just reached 23 trillion two days ago.

Someone said "numbers is hard" :cool:
Another way to look at it. In 1980 interest payments on the national debt were 1.84% of GDP. In 2018, they were 1.58% of GDP. In 1991, they were 3.15% of GDP. I think we're fine.
 
Feb 5 2018 was an extremely unusual day in the stock market for what reason?
 
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