How rich is America? Current government figures show that U.S. gross domestic product is around $15 Trillion. National gross domestic product (GDP) is the market value of all officially recognized final goods and services produced within a country over a given period of time, usually tracked on an annualy basis. Economists use it as way to measure economic recession and recovery. When compared with population, it is considered to be an indicator of a country's standard of living.
All things being relative, how do we look in comparison to other countries? The United States leads leads he world in GDP . But before we celebrate, what if we compare the GDP numbers to something else... for instance, the national debt? Right now, the U.S. government is $16.8 Trillion in debt. You can say that we are in uncharted territory since this marks the first time in U.S. history that the national debt is higher than national GDP!
The relationship between government debt and GDP is known as a country's debt-to-GDP ratio, and it's a key indicator of economic health. It's expressed as a percentage, as shown by the chart above. History has shown that when government debt exceeds GDP, economic conditions can deteriorate very rapidly. In fact, there no example of a financial system that has survived after this point has been crossed.
The question now becomes, how broke is America ? The writing is on the wall. Don't be caught unprepared.
Mahan A. Milton
Senior Precious Metals Analyst