Just to follow up on that last post...

The crisis explained in one chart

This chart compares total debt (or “credit”) in the U.S. to GDP (or Gross Domestic Product) on a percentage basis. Current total credit-market debt stands at more than 340 percent of total GDP.


So that big spike in the 1930's was during the Great Depression. But it wasn't a run-up in debt that caused that spike. It was the GDP contracting out from under the debt value. (Remember this graph is debt/GDP ratio, so if you shrink the bottom half of the fraction, the line goes up.)

In the current crisis, up until now at least, GDP has not been shrinking. At least not much. The spike is because our debt is increasing. The remedy, supposedly, is even more debt. The line goes up. And what if our economy shrinks and our GDP declines? (What if!) Yes, the line goes up. Put them together, and.... well, hang on, we're already off the freakin' charts here. We're gonna take that line in the red oval, and cause it to spike?

Crap.

Our government is insolvent.

And I was really hoping for some nice tax rebates for solar panels and hybrid cars. And a functional health care system. And money for retirement. Oh well, maybe next time.

So start picking out names for the new country you and your neighbors will be forming.

A few thoughts when you're drafting up new laws: Don't give corporations the same legal status as individuals. Don't let bankers be in charge of banking regulations. Don't let chemical companies be in charge of agricultural policy. And don't have an electoral college.

Feel free to add your own suggestions.

--