Sunday, August 5, 2012

Debt increases at a lower rate

I'm not saying everything is hunky-dory, but the debt has increased less than $100 billion/month for the 3rd straight month.

On 4/30/12, the debt was 15692
On 7/31/12, it was 15933

The increase during this 3 month period was 241 billion, or an average of about 80 billion per month.  It's a small victory but it's better than a sharp stick in the eye.

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Is it permanently sustainable at this rate?  I define "sustainable" as having a doubling time of more than 10 years (120 months).  The 120th root of 2 is 1.0057929411 or about 0.579%.  15692 x 0.579% = 90.86. 

So yes, the debt, or rather the rate of increase in the debt, is permanently sustainable at this rate.  We can point to May 1, 2012 as being the turning point. Hopefully, it continues.

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