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Us £13T National Debt To Go Over 100% Of Gdp In 2012

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http://www.bloomberg.com/apps/news?pid=20601010&sid=aa0cI64Gx.4E

U.S.’s $13 Trillion Debt Poised to Overtake GDP: Chart of Day

By Garfield Reynolds and Wes Goodman

June 4 (Bloomberg) -- President Barack Obama is poised to increase the U.S. debt to a level that exceeds the value of the nation’s annual economic output, a step toward what Bill Gross called a “debt super cycle.”

The CHART OF THE DAY tracks U.S. gross domestic product and the government’s total debt, which rose past $13 trillion for the first time this month. The amount owed will surpass GDP in 2012, based on forecasts by the International Monetary Fund. The lower panel shows U.S. annual GDP growth as tracked by the IMF, which projects the world’s largest economy to expand at a slower pace than the 3.2 percent average during the past five decades.

“Over the long term, interest rates on government debt will likely have to rise to attract investors,” said Hiroki Shimazu, a market economist in Tokyo at Nikko Cordial Securities Inc., a unit of Japan’s third-largest publicly traded bank. “That will be a big burden on the government and the people.”

Gross, who runs the world’s largest mutual fund at Pacific Investment Management Co. in Newport Beach, California, said in his June outlook report that “the debt super cycle trend” suggests U.S. economic growth won’t be enough to support the borrowings “if real interest rates were ever to go up instead of down.”

Dan Fuss, who manages the Loomis Sayles Bond Fund, which beat 94 percent of competitors the past year, said last week that he sold all of his Treasury bonds because of prospects interest rates will rise as the U.S. borrows unprecedented amounts. Obama is borrowing record amounts to fund spending programs to help the economy recover from its longest recession since the 1930s.

“The incremental borrower of funds in the U.S. capital markets is rapidly becoming the U.S. Treasury,” Boston-based Fuss said. “Do you really want to buy the debt of the biggest issuer?”

Follow the link and click on the "GRAPHIC" tab next to "STORY" just above the title.

Realistbear, where art thou?

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Nearly posted this last night but when I checked the date I thought no someone will have posted this on the 4th. The numbers are just boggling I can't see how the US is going to survive with all this debt especially as so many states are close to financial collapse.

No wonder they are wanting everyone to focus on Europe.

Still it's all contained and the recovery is locked in.

Leverage is cool.

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default.

Or printius printius

Doesn't matter now anyway, The eventual outcome will be a currency reset either way

What's in your wallet?

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Time for the Amero? :ph34r::lol:

a new currency will make not one jot of difference.

only repayment or default can reduce the deficit.

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a new currency will make not one jot of difference.

only repayment or default can reduce the deficit.

watch mexico over the next few years, hello silver peso anyone, if it gets enough support from the people it can happen, and if it does happen it will be a game changer for other currencies

google hugo salinas price - moves towards a free-floating silver peso have been years in the making

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  • 259 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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