Debt to gdp ratio do you want the number low or high

Even that assumption is based upon another unacknowledged assumption, that the overall rapid growth of the amount of low quality debt doesnвЂ™t matter. Not when interest rates were in a secular downtrend during that exact same period.ДalioвЂ™s sanguine analysis is based upon the unacknowledged assumption that interest rates will be tightly capped by central banks via massive monetization of long dated debt. I wonвЂ™t grant that these factors alone have allowed a 250% increase in 3 decades. Now I will grant that the stupendous technological advances in information and communications technology has by itself made a higher ratio manageable and really possible. Now a decade later it has fallen by a few percent. So except for the Depression spike in the ratio caused by a shrinking GDP before the debt was eliminated, by default, the ratio averaged in the 150% area until 1980 when it began a doubling, and beyond, in 30 years. A non current one since as you noted Google does not seem to supply a current one. I am puzzled why an article about the debt/gdp ratio does not have a chart of said ratio so letвЂ™s take a look. Furthermore, it tracks the total US debt per dollar of GDP over time and shows how each sector contributed to the change in Debt:GDP. It allows the user to easily track total debt in the US economy broken down by the main categories (Government, Household + Non-Profit, Business). I took matters into my own hands by creating this analysis. Obviously much of AmericaвЂ™s debt is public government debt, but what about the proportion of mortgages, student loans, and corporate debt? Furthermore, I wanted to be able to analyze where the debt was concentrated. The only problem was that I couldnвЂ™t find any free, real-time analysis of such a the Total US Debt to GDP ratio on Google. In 2012, Dalio claimed that the US was executing a beautiful deleveraging and I wanted to confirm the validity of this statement. GDP growth slows down as businesses and households consume less and use savings to pay down debt (thus reducing the debt to GDP ratio).

Beautiful deleveraging occurs when the government balances the deflationary tendencies of a deleveraging by borrowing and spending credit-based stimulus.

Germany experienced this in the 1920s after World War I. Inflationary deleveraging occurs when prices rise rapidly while the countryвЂ™s currency depreciates, eventually wiping away debts through hyperinflation.This is what happened during the Great Depression. Deflationary deleveraging is characterized by tight credit and defaults.To resolve such a situation and purge unsustainable levels of debt, our economy had to (and still does) go through a period of deleveraging. Debt burdens, he reasoned, had grown too high relative to income and were no longer sustainable. a 75-100 year long term debt cycle characterized by large swings in the ratio of total debt to GDP.Дalio believes that the long term cycle peaked in 2009.a 5-8 year short term debt cycle which leads to economic expansions and recessions.In his 30 minute video about вЂњ The Economic Machine,вЂќ he explains that the economy follows recurring cycles: I began researching this ratio after studying Ray DalioвЂ™s theory on how the economy works. In fact, the ratio of total us debt to GDP peaked in 2009/Q1 around the 400% mark and has since steadily decreased. What may not be obvious, however, is that since 2009 the total debt outstanding in the US (including consumer, business, and government debt) has actually dropped when compared to GDP.

Many people may be aware of the ballooning US government debt, which is now approaching $20 trillion in 2017.

Debt to gdp ratio do you want the number low or high