8 Charts You Must see To Discuss The Debt Ceiling

Ed note: August 2nd is nearly here and Congress remains locked in a stalemate over increasing the debt limit and avoiding a potentially crushing default.

Links and pictures presented with minimal commentary.

From the FRED paper entitled “The Federal Debt: What’s the Source of the Increase in Spending?”:

This post originally appeared at Macrofugue.



defence & other expenditures vs Social Security/Medicaid/Other personal payments:

Further broken down:

Federal outlays for August - pick your payment priorities:

Federal interest payment & as a fraction of GDP is $200B per year, or 1.3% of GDP:

Federal net government saving & as as a fraction of GDP is $1.2T per year, or 9% of GDP:

Federal government expenditures are $3.761T per year, or 25% of GDP:

Intrade prices are implying a 70% chance of a deal being done by August 31st, and only a 21% chance by July 31st:

Here's what to do in case Congress misses the deadline:

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