6 votes

Denninger uses arithmetic to destroy Marco Rubio's lies

Rubio 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.

http://market-ticker.org/akcs-www?post=214722

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Cyril's picture

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.

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius

Cyril's picture

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 ?

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius

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.

Support Rand, Amash & other liberty candidates? Check out: http://www.LibertyConservatives.com/

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.

Support Rand, Amash & other liberty candidates? Check out: http://www.LibertyConservatives.com/

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!!!

Jackson 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.