One of the graphs I look at all the time is "Debt per Dollar": Total debt, relative to the quantity of circulating money. Total (public and private) debt, because debt has to be serviced. Circulating money, because that's the money used to service debt.
Today for some reason I inverted the ratio. Here is the graph:
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| Graph #1: The Money We Have for Paying Our Debts (and our other expenses) per Dollar of Debt |
We had about 2 cents of money (per dollar of debt) just before the financial crisis, when the economy was not so good.
Internal factors arose that destroyed the economy. It's right there on the graph.
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