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URL:  https://boards.fool.com/ben-thanks-for-the-correction-i-should-have-29353201.aspx

Subject:  Re: Chart of Federal Debt (1797-2010) Date:  6/10/2011  7:54 PM
Author:  howardgt Number:  32936 of 36670

Ben,

Thanks for the correction... I should have thought before I typed.

It makes sense that a ratio would be “nominal”.

I’m trying to understand why all these ratios are so out of line with historical numbers. Maybe the fact that Real GDP has been overstated for so long, somehow accounts for all these ratios spiking. I need to think about these numbers and try to figure out the consequences.

This sort of reminds me of the late 70s and early 80s when inflation was raging, and I wondered how it will all end? Of course the inflation scare eventually burnt itself out (thanks to Volcker). So maybe the deleveraging process (that is going on now) will eventually bring the debt and equity ratios back in line. That's sort of what I'm hoping and guessing will happen.

Ok, I feel better now... I won’t get my tinfoil hat just yet :)

Howard
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