Chuck Madere: America’s Total Debt Report cont.

Chuck Madere Here with a continued report by  Michael Hodges.

The left chart shows the trend of federal government debt per man, woman and child - $29,926 per person in of FY2007 - a new record.

NOTE: For full details of federal government debt, with graphics, including interest and debt owed foreigners -

see the Grandfather Federal Government Debt Report.

FINANCIAL SECTOR DEBT - new records each year - exponential

The charts revealed the exponential growth of domestic Financial Sector debt. Let’s look closer at that component.

This chart is a blow-up of the trends of the domestic Financial Sector’s $15.6 trillion of debt shown as a ratio to national income ratio - which, as can be seen by the red-dash line, are growing exponentially upward.

From 1957 to today, the financial sector debt ratios have increased 25 times faster than the economy has grown, including inflation. From 5.6% of the economy’s national income in 1957, to a 140% debt ratio today.

It could be said from this chart that the economy is 25 times more sensitive to Financial sector debt than ever before - - indicating a growing danger of total economic instability.

Much of this explosion is due to exploding government supported enterprises, such as Fannie Mae, Freddie Mac, etc. (see below).

The upward zoom is unbelievable - and worse > it is exponentially upward.

It would appear there is no way this trend is sustainable - - suggesting a major upheaval of some type in the near future. This is said with ‘tongue in cheek.’

Thanks for reading,

Chuck Madere

by Michael Hodges - email
updated June 2008
- a chapter of the Grandfather Economic Reports -