Even though growth turned out to be a tad less than the government's prior two estimates for the quarter, the new reading still marked the strongest showing in six years.
I've shown this chart before, but it is very important in understanding the "cost" of our growth.
After the depths of the second great depression, it took $1 of annual debt creation to produce 0.30 cents of annual income. As of the fourth quarter of 2009, that number has dropped to 0.27 cents. If we continue to pursue "save me" policies, this number is certain to drop even lower.
Those with a critical eye might be asking how low can it go before it jeopardizes the recovery. In other words, can the debt pile get so big that no amount of debt issuance can foster economic growth? Watch the bond market for an answer.
Annual Gross Domestic Product (GDP) per Annual Total Credit Market Debt (TCMD):
Annual Income Growth per Debt Creation:
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