The burn rate is a eight percent of GDP. Total debt is one hundred percent of GDP.
Federal government accounting is a riddle wrapped in a mystery inside an Enigma, which has lead some people attempting to make sense of its books to become somewhat paranoid, myself amongst them. If you have ever run a small business, you will know how hard it is to figure out how the business is really doing, even if you are a smart guy who knows a bit of accounting and understands the business. If it is a large business, and those doing the accounts do not really want to know how the business is actually doing …
The recent debt limit shenanigans, however, revealed the burn rate, the rate at which the federal government has to borrow money or print money. Between April sixteenth and August the first, the national debt increased by 238.357 billion in 77 days, which is about 1.13 trillion dollars a year, surprisingly close to the reported deficit. The actual burn rate is likely a fair bit higher than that, because July is a good month for tax payments.
That is unsustainable, but it is not hyperinflation in 2012. More like hyperinflation in 2026
[…] 2: In one day alone the debt went up by $239 billion, the biggest one day jump in history.Update 3: Jim’s Blog linked – thank you! google_ad_client = "pub-1395656889568144"; /* 300×250, created 8/11/08 */ […]
Taking the proper start of the American empire as 1945, and then adjusting for the much faster pace of modern life, that seems about the same amount of time the Roman empire lasted. Unless I’m missing something.