Denninger uses arithmetic to destroy Marco Rubio's lies
Submitted by newt on Sun, 12/09/2012 - 13:18Rubio quote "We must get the national debt under control. Tax increases will not solve our $16 trillion debt. Only economic growth and a reform of entitlement programs will help control the debt."
Denninger's response
Economic "growth" has not happened since the 1980s. You are a liar Marco, and since I assume you are intelligent this is not a mistake, it is a lie.
Since all money is debt-backed in our economic system it is trivially easy to determine the expansion of GDP over time removing out the expansion of debt. This one must do in order to obtain an accurate accounting of actual output.
So let's do that.
http://market-ticker.org/akcs-www?get_gallery=3776
This is the graph of all forms of debt in the United States from 1980 to today. It is, of course, denominated in dollars. In 1980 GDP stood at $2.724 trillion. Today, it stands at $15.775 trillion, 579% of its 1980 value.
However, all forms of debt in the Z1 stood at $4.398 trillion in 1980, at the same time GDP stood at $2.724 trillion. That is, monetarily one unit of GDP was represented by 1.61 units of currency and credit.
In currency-invariant terms, therefore, our GDP was 0.619. We'll make this convenient and multiply these invariant terms by 1,000; ergo, our currency-invariant GDP was 619.
So what is it now?
Today, we have a GDP of $15.775 (from the latest preliminary estimate) but debt of $55.358 trillion. That is, monetarily one unit of GDP is now represented by 3.55 units of currency and credit.
In currency-invariant terms, therefore, our GDP is 0.281. For convenience we again multiply by 1,000; ergo, our currency-invariant GDP is at present 281.
619 is about 220% of 281, or, if you prefer, GDP in invariant terms is 45.4% of what it was in 1980!
Growth? Where?
There hasn't been any; what there has been instead is a scam promulgated by both political parties and you, Macro "I am a fraud" Rubio are one of the chief promoters. John Boehner is another, as are Mitch McConnell and Paul Ryan.
You can't evade the arithmetic sonny. It just is.
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BUMP. For good article by Karl Denninger
BUMP. For good article by Karl Denninger.
Had seen some of these charts before.
Spread the ugly truth. Update Mr. Rubio / your local GOP if not done yet.
You'll do them a favor... that I hope, will be much appreciated, eventually(?)
Nothing wrong with being ignorant, sometimes. Everything wrong TO CHOOSE to remain so, IMO.
Peace.
My name's pronounced like "see real". Its root is "Lord".
"The demand of a great people is always at the scale of its most serious misfortunes." --De Gaulle
http://Laissez-Faire.Me/Liberty
Beauty-Full Charts
Anyone care letting Mr. Rubio know about "his" GDP's growth perspectives ? (I would, if I had his email address.)
Fast forward to 13min 55sec for breathtakingly "beauty-full" charts, Mr. Rubio :
http://www.youtube.com/watch?v=GitCvGFXi2M
Oh, and something else which has "beauty-full" growth perspectives, as well :
http://www.youtube.com/watch?v=dv7H7iiyBsw
Beautiful landscapes, ain't it ?
My name's pronounced like "see real". Its root is "Lord".
"The demand of a great people is always at the scale of its most serious misfortunes." --De Gaulle
http://Laissez-Faire.Me/Liberty
I can't stand Rubio. I don't
I can't stand Rubio. I don't know why so many Republicans like him so much.
Rubio's right. Increasing
Rubio's right. Increasing taxes will not solve the debt. Cutting spending will.
You can't be serious. For
You can't be serious. For Rubio to bitch about spending is like Britney Spears bitching about excessive sexual imagery in music videos. The man lives to fund the military industrial complex and to promote "compassionate conservatism."
What he's quoted as saying in
What he's quoted as saying in this case is largely right. I didn't say his votes were.
This is the same guy who
This is the same guy who voted for Barack Obama...jeez, this place is turning into a communist paradise.
An enemy of our enemy =/= our friend.
http://market-ticker.org/akcs-www?singlepost=2137743
JMB
Then leave you wore out neocon.
I'll take Denninger over Obamney anyday.
Of course you actually think there's a diference between obushma and obamney. ahahahahahah!!!
Gwinnett County Georgia
War is an instrument entirely inefficient toward redressing wrong; and multiplies, instead of indemnifying losses.
Thomas Jefferson
That's funny, because I voted
That's funny, because I voted for neither. Yet you have the audacity to tell me that I THINK there is a difference, yet you are the one saying we should vote for Obama:
http://www.dailypaul.com/215771/obama-smart-move
Help Me Understand
Wouldn't decreasing spending and increasing production (broading the tax base) increase cuurency-invariant GDP? So where is Rubiob wrong on this? Is the author one of the "tax the rich wil fix" crowd?
Rubio is wrong cause he
Rubio is wrong cause he hasn't proposed any real decreases in spending. He certainly won't support cuts to the Pentagon or precious Israel.