The burden of the US National Debt dipped to 65.1% GDP as of the end of May. That appears to be a seasonal lull, so we can expect it to return to 65.4% or so in the June/July timeframe. That’s okay, because the overall trend is still downward. I’d like to see it drop to 60.0% GDP, then stay there permanently, as I’ve explained before.
I have recalibrated the Debt Clock accordingly (see top right).
The graphic below shows the seasonal peaks and valleys in the debt numbers reported by the US Treasury Dept. (Don’t forget, the GDP, not shown on this chart, is growing, too—and at a faster rate than the debt is growing. That’s why the debt-to-GDP ratio is gradually declining.)
Click to enlarge.
Also, it’s time to update the International Debt Thermometer. Although it doesn’t change frequently, the CIA World Factbook now says Canada’s public debt is 39% GDP, a big drop from the 68% figure it had been reporting until a few weeks ago (as I mentioned in this recent article). Apparently, somebody at the CIA changed the methodology for Canada’s calculation. I’ve asked why, but have received no response. In any case, Canada dropped several places in the rankings shown below.
Lastly, for trivia buffs: Uruguay is suddenly showing the world’s highest debt burden: 793.4% GDP, far higher than Malawi’s 208.6%. I chose not to add it to the graphic; it’s an “outlier” that would compress the scale too much. [If the CIA got this right, I strongly suspect that somebody in Uruguay is unhappy with Uruguay’s accountants.]
