A system with fatigue…?
Having looked at some of the OECD-statistics, trying to understand a little more about current economic development within the OECD-countries – I don’t get it…
When I combine data from Governmental debt, Debt held by citizens and non-citizens, Population and GDP – up until 2007/2008 changes in debt-levels where rather closely related to changes in GDP, but from 2008 the GDP has shown no or very little change (even a decline) while at the same time debt-levels have continued to increase at a high pace…
The same phenomena came up when looking at figures from “Statistics Sweden” – according to their figures, total liabilities in Sweden increased from 429% of GDP in 2007 to 490% in 2012 – while at the same time GDP per capita showed no increase at all.
What are we borrowing for…?
Under normal circumstances lenders and investors always refer to ROI – isn’t that valid anymore, or is it only me not being an economist, interpreting the data in the wrong way… Continue reading