Country | Debt to GDP ratio =========================== US | 45% UK | 50% Japan | 171% Germany | 39% Canada | 42% China | 20% Brazil | 36% * Q4 2008
The big picture blog quotes Bill Gross of PIMCO's "Staying Rich in the New Normal". The US deficit of nearly $1.5 trillion is 10% of GDP. In 5 years, that get's us to a debt to GDP ratio of 100%. Add funding the baby-boomer's healthcare and retirement and your in the banana republic territory of 300%.
I dunno where they got the above numbers. Google says the national debt is 11 trillion while GDP is 14 trillion, which gives 78%. Looks like we're right about at the point of no return. Doh!
The federal debt was equivalent to 41 per cent of GDP at the end of 2008; the Congressional Budget Office projects it will increase to 82 per cent of GDP in 10 years. With no change in policy, it could hit 100 per cent of GDP in just another five years.
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