Even as policy wonks are calling for the U.S. federal government to
turn away from monetary policy and “austerity”, Treasury debt
outstanding has already seen massive annual increases since 2007, and
not just in the US but around the entire world, Bloomberg market
strategist Chris Maloney writes.
Which brings us to this week’s report on the U.S. federal
government’s monthly budget statement. As Maloney puts it, "for
eight-plus years now the U.S. federal government’s fiscal policy
has been one of unprecedented deficit spending, pushing total debt to
$15.3t from $6.1t (a 153% increase); this excludes ~$5.1t intra-govt
debt holdings."
Yet GDP since the end of Jan. 2008-June 2009 recession has
averaged just 2.1%, below the 2.7% average seen from 2000-2007 while the
last five quarters have seen a steady drop from 3.3% to 1.2% . Now .08%
Meanwhile, debt has continued its relentless rise higher, pushing the
ratio of US government debt/GDP to an all time post World War II high
of 105%.
The rest of the world isn't any better; in fact when adding across all debt categories, a terrifying chart emerges.
http://www.zerohedge.com/news/2016-08-07/about-upcoming-fiscal-stimulus-it-already-running-full-blast