More On US Debt and US GDP Growth

A Floyd Norris piece in the NY Times fits neatly into the recent posts on debt. 

Off the Charts - Ratio of Troubled Loans Means Banks Aren’t Out of the Woods - NYTimes.com: "February 27, 2010
By FLOYD NORRIS

" MORE than $1 in every $10 that American banks have outstanding in loans is lent to a troubled borrower, a ratio far higher than previously seen in the quarter-century that such numbers have been compiled.

More on the EU, Greek Debt and Bail Outs

 See my background piece here for further info on US investment banks, consumption growth, the EU and Greece.  EU growth and return to BAU is an essential element in our USG assumption of a return to BAU for the world, and therefore a return to BAU for America.  I am convinced we Americans will soon be having the same discussions about "bailing out" some of our own states -- Michigan? California? New York?.

Investment Banks, Debt and Consumption Growth -- Greek and EU Example

The past and present practices of the American banking system and the consequent debt picture in the industrial world are among the many impediments to future consumption growth.  

The little introduction below is necessary as a lead in to my first blog (of probably many blogs) on the connection of the US investment banks to the past and future consumption growth of the US and the rest of the world.

Rebalancing World Consumption -- China and the US

Yesterday Professor Simon Johnson made a presentation to the US House of Representatives on US Debt to China.  Johnson is one of the economists I read regularly, and with whom I usually agree.  For those who have the time I recommend you read his blog referenced above.  If not, here is a summary (italicised below) with my own comments.

Growth, Financial Crises and Opportunities

It is clear that every American politician and every American economist agrees that America was recently in a "credit crisis", and that the only solution to the US "credit/debt" problem, exacerbated by US Government (USG) intervention to solve the "credit crisis", is to grow our consumption faster than our government expenditure.

US Government Budget Assumptions and International Consensus re Consumption Growth Rates

This post summarizes, in pictures, the consumption growth forecasts for America and the world, which underlie the US Government (USG) FY 2011 Budget published in January 2010.  The growth assumptions are almost identical with those of the IMF, the World Bank and other international economic agencies.

Obama FY2011 US Government Budget -- First look

President Obama submitted his US FY 2011 Budget last week.  This post is a first quick look at the numbers and their import.  The assumptions and numbers in this annual budget exercise are the most important determinants of world growth and world peace.  Why do I say that?

Actual and Forecast Consumption Growth Rate -- GDP History and Projection

This is the third in a series of three postings -- first an introduction to the blog, second a quick review of historical anthropological consumption growth, and then the current post which connects prehistoric consumption to current consumption and projections of future consumption and consumption growth.