Efficiency Expert in Charge?

By
Services for Real Estate Pros

As we all (OK all of us who must earn money in order to live) continue to watch what goes on in our country economically, there are a whole bunch of numbers that mean something. Most of them are called indicators of some good or bad that is about to happen. Others merely show us if we are making any headway, monetarily as a country.

I myself try to keep on eye on the day to day stuff that directly effects me and my small businesses or two. You know, the DJI, Nasdaq, mortgage rates, shadow inventory, DOM, Denver Broncos record, Hooters business hours, etc.

My degree is in Math and not Econ. so in that vein, can one of you who is better schooled in economics or finance please explain if this is a good or bad number:

The US ended 2012 with a 103.8% debt to GDP.

It looks pretty bad to me. I am just not sure how bad.

Here is the complete article:

 

http://www.zerohedge.com/news/2013-01-30/us-ends-2012-1038-debt-gdp

Comments (9)

David Brandschain
Long & Foster - Blue Bell, PA

Kevin I am not an economist but there are probably some other ratios that would be more relevant in making your point.  Just like in evaluating credit debt to assets might be relevant.  Or maybe debt service (on national debt) to tax revenue may be illuminating.  Obviously less debt would certainly be a good thing and help our national credit rating.  Thanks for the blog.

Jan 31, 2013 05:17 AM
Fred Griffin Tallahassee Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

America is burying itself in debt.  When the Chinese decide to accelerate the principal amount due, they will take our coal and oil (from the fields that Americans are not presently allowed to mine or drill).

     In a little while, one of the Soros Trolls will be along to comment that you are paranoid and watching too much Fox News.

Jan 31, 2013 10:12 AM
Rob Arnold
Sand Dollar Realty Group, Inc. - Altamonte Springs, FL
Metro Orlando Full Service - Investor Friendly & F

There is a giant storm coming at the USA.  Nobody is sure when it will hit, but when it does it will be bad.  Between the debt, the social secuirty and medicare shortfalls, and all the lazy good-for-nothing people that would rather collect welfare than work, it is just a matter of time. 

Jan 31, 2013 09:57 PM
Than Maynard
Coldwell Banker Heart of Oklahoma - Purcell, OK
Broker - Licensed to List & Sell - 405-990-8862

Don't worry about it. Joe Biden said "We have to spend our way out of debt!" I am sure when debt hits 150-200% of GDP we will magically start to prosper and pay off all our bills!

Idiots in charge (from both parties)!

Feb 01, 2013 04:05 AM
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

We are being told this is good, but I snese a bit of lip service in the air.

Feb 01, 2013 05:54 AM
Steven Cook
No Longer Processing Mortgages. - Tacoma, WA

Kevin -- let's check this out against a family situation:  If the family debt is 103% (and growing) of the income brought in -- it might be OK, if part of that debt is mortgage payment, for which there is an offsetting value.  Howsoever, I am not aware of any of the debt of the Federal Government being a mortgage type situation -- it seems to be more like credit card debt - where have used what was bought, and still need to maintain it, but don't have any intrinsic value to show for it.

Feb 01, 2013 07:54 AM
Jay Markanich
Jay Markanich Real Estate Inspections, LLC - Bristow, VA
Home Inspector - servicing all Northern Virginia

Iiiiiiitttt iiiiiiisssss fiiiiiiinnnnneeeee Keeeviiiiin... Aaaaaallllll iiiiiiiissss wwwwwweeeeellllllllllllll...  The Little Imam says so.

Pay no attention to the man behind the curtain.

Feb 01, 2013 07:31 PM
Jon Budish
Resident Realty - Fort Collins, CO

No matter how much our Govt. spends, this administration wants to tax "the rich" more. Until we get adults in Wash. that understand it's not a revenue problem, but rather a spending problem, we're headed for a serious reality check. It won't be pretty!

Feb 04, 2013 10:40 PM
Dinah Lee Griffey
Windermere Peninsula Properties - Allyn, WA
Managing Broker Windermere Peninsula Properties

I don't think things are as good as we are hearing. I wish they were. I think we are just buying time. Kind of like in the movies when the Government knows about the asteroid or what ever and the people just go on with their lives oblivious. The only problem is a lot of us are looking up and seeing it hurdling towards us but no one is really talking about it,because it is just too big. 

Apr 15, 2013 04:09 AM

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