Wednesday, June 6, 2018

Debt and GDP on a Log Scale

Graph #1: TCMDO Debt (red) and GDP (blue) on a Log Scale
Accumulated Debt and Nominal GDP appear very much in sync from 1951 to 1981. Then GDP growth slows. Then debt growth slows, but not as much, and the two drift apart until the Great Recession.

Now they appear to be running parallel again. Like in the 1950s, except much farther apart. And at a much higher level.

And not so fast uphill.

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