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National Debt to exceed GDP in 2011!


CofCC.org News Team

Treasury Secretary Geithner just informed congress that the US debt limit needs to be raised in anticipation of the US National debt exceeding 12 trillion dollars within the next two months. The debt is currently 11.7 trillion.

The debt, in term of percentage to the GDP, was the highest in 1945 due to World War II. By the time WWII ended, the national debt equaled the GDP. Fortunately this ratio fell like a rock during the 1950’s and continued to fall throughout the 70’s and part of the 80’s. Then the debt ratio started to go back up.

In 2007, the national debt was a staggering 65% of the GDP. Since then it has EXPLODED!

It hit 70% in 2008. Now with all the radical socialist spending by Obama and Pelosi, experts predict that the national debt will be 90% of the GDP by the end of this year!

By the end of 2010 it will be nearly 100%, and will actually exceed the GDP in 2011.

An analysis of the national debt in 2008 showed that half of the debt is owed to the Federal Reserve. This is money that was created out of thin air and then loaned to the US government with interest.

A shocking 28% is debt held by foreign nationals, corporations, and governments.