Everyone is saying how great the United States is growing with a positive purchasing manager index and positive GDP. But the fact is that U.S. public debt is growing much faster as GDP. But this happened only just recently.
Before 2008 (the economical crisis), debt was increasing at a slower pace as GDP. The slope at which debt rose was moderate. Notable is that for each unit increase of debt, we got more than one unit increase in GDP.
After 2008 though, we get a very different picture. Please go here to read my analysis.
|Chart 1: U.S. Total Public Debt VS. U.S. Debt Ceiling|