U.S. Total Financial Liabilities July 2014
Jul 17, 2014

One measure of the financial leverage of the United States of America is the ratio of total financial liabilities to GDP.  In this commentary I will compare this ratio today with the ratio in 1929 just prior to "The Great Depression".  In 1929, the U.S. Government did not have social benefits liabilities as we do today so I will look at U.S. Total Debt then and now and social benefit Unfunded Liabilities as they are today.  

Year                                1929      1930      1931     1932     1933
U. S. GDP                     $104.6B  $92.2B  $77.5B  $59.5B  $57.2B  USEconomy.about.com
U.S. Total Debt%GDP    183%                                             300%    Early Warning

Note: U.S. Total Debt in this table is federal, state, local, consumer, corporate, and financial debt.

Table 1:  U.S. GDP and U.S. Total Debt%GDP during The Great Depression

Year                                                       2014
U.S. GDP                                             $16.8T    www.usdebtclock.org
U.S. Total Debt                                    $61.5T    www.usdebtclock.org
U.S. Total Debt%GDP                           366%
Unfunded Liabilities                             $79.0T   USAPonzi Fiscal Model              
Unfunded Liabilities%GDP                    470%
U.S. Total Financial Liabilities           $140.5T   U.S. Total Debt + Unfunded Liabilities
U.S. Total Financial Liabilities%GDP     836%    

Note: U.S. Total Debt in this table is federal, state, local, consumer, corporate, and financial debt.

Table 2:  U.S. GDP, U.S. Total Debt, and Unfunded Liabilities     July 17,2014

As of July 17, 2014
Our U.S. Total Debt%GDP is 2X what it was in 1929 (366%/183% = 2.0)
Our U.S.Total Financial Liabilities%GDP are 4.6X what they were in 1929 (836%/183% = 4.6) 

Our total financial leverage in 2014 is 4.6 times what it was at the start of "The Great Depression".

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