This isn’t an addiction. This is what formation by debt looks like.
To get this somewhat dystopian measure, Bloomberg took each economy’s 2020 GDP as projected by the International Monetary Fund as a starting point. We then adjusted the number by removing the ability to borrow, while adding reserves to create an alternative wealth measure.
U.S. per capita income of $66,900 would be slashed to a negative $4,857 using this measure. That’s a total loss of almost $72,000 for every man, woman and child.
But, don’t worry!
Luckily for Americans, a debt-free economy is unlikely to happen anytime soon. Even with growing trade wars against China and others, and the Trump administration’s projected $1 trillion budget deficit in fiscal 2020, the U.S. debt market allows for ample liquidity and the U.S. dollar is considered the world’s reserve currency.
Well, thank God for that!
Happy September. I’m looking forward to Fall. Not the economic collapse. Just Autumn.