Thursday, January 12, 2017


This graph shows the Gross Federal debt, nominal and real:

Adjusting the Federal Debt for Inflation
Graph #1: Federal Debt (blue) and Its Inflation Adjustments, Right (red) and Wrong (green)
Nominal (blue) is useful for figuring the payback of debt. Real (red) is useful for figuring the boost that credit use gives the economy. The third calculation (green) is wrong and should not be used. These rules apply not only to government debt, but to all debt.

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