Tuesday, December 6, 2011

The debt threshold is 84%

"In the case of government debt, when the debt exceeds the 84 percent threshold, an additional 10 percentage point increase in debt-to-GDP will actually drive growth downward by 10 to 15 basis points (0.1 to 0.15 percent). This additional debt has the exact opposite impact on the economy that governments want."

http://viableopposition.blogspot.com/2011/12/debt-break-over-point-when-is-too-much.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+blogspot%2FtTbKB+%28Viable+Opposition%29

The US may hit this level by 2016.

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