We all know that our economy has had its ups and downs, and we are definitely in a down cycle! I was just at an investment conference and there are a few data points that I would like to share with you. A boom is a period of economic growth while a bust is a long term cycle of contraction. From 1854 to 1945 that boom/bust lasted 21 months. Now fast forward to after WW II and the expansions have lasted about 50 months and the contractions have lasted 11 months.
I am always amazed that a large portion of the US debt is held by foreign governments. They hold about 30% or $2.6 trillion dollars. The top 5 include: Japan, China, UK, our oil friends, and Brazil. We would have to pay over ½ million dollars for each household to pay off the national debt.
If you want to help reduce the deficit you can actually send a check to the Bureau of Public Debt, PO Box 2188, Parkersburg, WV 26106!
Sources: The Economist, US Census Bureau, US Department of Commerce