Friday, December 24, 2010

It's from The Hunt for Red October

...checking my numbers... re-creating the Debt-per-Dollar graph... preparing for another post...

oh... Google has added more chart features... playtime... okay...

So, using the same three-source numbers for Total Debt that I've been using for a while now, and a good set of numbers for M1 money, I re-created my DPD graph:

Ah yes... it hits $10 in 1978... $20 in 1998... $30 in 2006... and peaks in 2007 at $35 of debt for every dollar of money in circulation.

...and they couldn't predict the financial crisis. Amazing.

As before, the blue, red, and gold trend-lines indicate the three different data sources, and the mis-match from 1956 to 1970 is still present, and again, the mismatch doesn't bother me, because it's the best data I could find.

I haven't yet figured out how to increase the size of the chart title. Obviously, sticking HTML code in there didn't help at all.

So then I took and edited the graph. All I did, actually, was click the Log Scale checkbox. All the same numbers, just a different view of them. This is the result.

Now we have three really very straight trend-lines: up until about 1932, then down until about 1948, and then a really long, straight-line uptrend for 60 years, to the Paulson Crisis of 2008, the crisis nobody saw coming.

When I first saw the log scale graph, my reaction was immediate:

"Now, that's gotta be man-made."

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