Quick and Dirty in Excel

A response to Greg's comment on yesterday's post.

This one is not "national debt" but "Debt of domestic nonfinancial sectors", conveniently listed alongside M1 and M2 money in the Economic Report of the President. (2010 issue, or maybe 2009.)

I subtracted M1 from M2 to get "savings" ... I indexed "savings" and "Debt" on their average values (like Friedman explained in Money Mischief)... and plotted the index values.

The two lines are substantially similar. Can't say, however, how much of the similarity is due simply to "growth." Probably a lot.

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Without indexing, the debt numbers are far higher than savings. National debt is a small part of total debt... I need another graph.

Thanks, Greg.

Art