Tag Archives: us national debt to gdp

long term charts of US NAtional Debt to GDP Image

Long Term Charts of US National Debt to GDP

The Long Term Charts of US National Debt to GDP provide eye-opening perspective on our fiscal trajectory. And with so much talk or record debt in the media, it makes sense to try and put some of this in perspective.

Keep in mind all the charts below are hosted on other websites. You can click on the charts to click through to the other sites and see the original images of long term charts of US National Debt to GDP.

You should know these aren’t my charts, I’ve just compiled them here for your convenience, so you’ll want to do your due diligence (although I’ve tried to find reputable data sources). Now without further ado…

Here’s a list of long term charts of US National Debt to GDP.

Long Term Charts of US National Debt to GDP:

The following graphs and images show US National debt overtime. In most cases they are sources of total public debt to GDP. Not all of the long term charts below have 2014 data. But even without the most recent numbers you can clearly see a trend that is at least a little worrisome.

But don’t take my word for it. See for yourself…

US National Debt to GDP – 1800-2011:

US National Debt to GDP Long Term Chart

Long term view of US Debt to GDP.

 US National Debt to GDP – Actual and Projected:

US National Debt to GDP 2014 and Beyond

The possible outcomes for debt to GDP aren’t looking good…

 

And here’s a nice little table of historical US Debt/GDP ratio from Wikipedia.

Finally, you probably know the US stock markets are at all time highs. But at this point, would it surprise you to know that it might just be debt-fueled?

US Margin Debt 1990-2014:

US Stock Market Margin Debt Long Term Chart

Are stock market highs fueled by record margin debt? If so, is that sustainable?

National Debt to GDP is starting to get to scary levels. But what does that really mean? Well, let’s dig a little bit deeper…

Comparing US National Debt to GDP to Other Countries:

While the charts of long term US National Debt to GDP look scary, it makes sense to put these numbers in context. In order to do this, I think it makes sense to look at the relative percentages of US National Debt to GDP ratio relative to some other countries.

Here’s a nice chart of debt to GDP from the Australian government that shows most major global economies. It’s only a snapshot, but the numbers are current.

US and Global Government Debt to GDP 2014:

G20 Countries Debt to GDP

Australia (in orange) stacks up quite well against the other countries in terms of national debt compared to GDP

So things aren’t so bad. But remember the recent trend. Just because America isn’t #1 in Debt to GDP ratio, doesn’t mean things aren’t getting worse. So let me share something else with you.

The whole reason I started looking for long term charts of US National Debt to GDP is because one of my favorite market prognosticators, Scott Bleier, tweeted the following…

So if Japan is the country to look at, what do we need to know?

Well, good question. Come take a look.

Japan Long Term Charts of National Debt to GDP:

The Long Term Chart of Japanese National Debt to GDP is rather revealing. So if Japan is where we’re going, let’s get some context on what that looks like. Before showing you the long term charts of national GDP to debt, take a look this chart of the Japanese Stock Market Index:

Nikkei Stock Average, Nikkei 225 Long Term Chart:

Long Term Chart of Nikkei Index Japan

This long term chart of the Nikkei shows that despite over 20 years of correction, the market has not recovered the prior highs.

Pretty scary right? If we’re Japan, will our stock market look like that at some point? And if so, what point?

Well, the following long term chart of Japanese National Debt to GDP is pretty revealing. Take a gander.

Japanese vs US Debt to GDP:

Japanese Debt to GDP vs. the USA

Japanese Debt to GDP vs. the USA. Note how quickly Japanese debt grew once things started to get worse. And if you extended this chart, you would see that things are starting to get worse.

So if the US is Japan (just 15-20 years down the road), does that mean we’re in trouble too? Well…

Obviously I can’t say one way or another. But I think this is the money shot of long term charts for US National Debt/GDP

US National Debt to GDP 2014:

Long Term Chart of US National Debt to GDP 2000-2014

US National Debt to GDP 2000-2014. What happens next?

It’s the most recent and accurate chart I could find. And it’s also quite telling. It looks like US National Debt to GDP is at a key turning point. If it can continue to roll-over, maybe the stimulus and much-debated recovery will have worked. But if this is a temporary pause before an even steeper ascent higher, I think it’s safe to say the Japan thesis is real.

So thanks for reading and I hope you enjoyed these long term charts. But now I want to ask you, what do you think will happen with the US National Debt to GDP?

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