Yesterday, without much fanfare, US debt to GDP ratio hit 101% with the latest issuance of $32 billion in 2 Year Bonds. If the moment when this ratio went from double to triple digits is still fresh in readers minds, is because it is: total debt hit and surpassed the most recently revised Q4 GDP on January 30, or just three weeks ago.
Said otherwise, it has taken the US 21 days to add a full percentage point to this most critical of debt sustainability ratios: but fear not, with just under $1 trillion in new debt issuance on deck in the next 9 months, we will be at 110% in no time.
This short piece was posted over at zerohedge.com yesterday...and I thank Australian reader Wesley Legrand for bringing it to my attention. It's worth the read...and the graphs are great. The link is here.
