The federal debt as a percentage of GDP, after falling post WWII, has soared to reach all-time highs.
Note: This includes debt owned by the Federal Reserve
Source: Wikipedia
Loading Chart
Year | Debt % of GDP |
---|---|
1910 | 2.65 |
1920 | 29.2 |
1927 | 19.2 |
1930 | 16.6 |
1940 | 47.7 |
1950 | 92 |
1960 | 53.9 |
1970 | 35.9 |
1980 | 32.5 |
1990 | 54.4 |
2000 | 55.8 |
2001 | 54.8 |
2002 | 57.1 |
2003 | 59.9 |
2004 | 61 |
2005 | 61.4 |
2006 | 62.1 |
2007 | 62.8 |
2008 | 67.9 |
2009 | 82.5 |
2010 | 91.6 |
2011 | 96.1 |
2012 | 100.2 |
2013 | 100.8 |
2014 | 102.7 |
2015 | 100.2 |
2016 | 105.3 |
2017 | 104.7 |
2018 | 105.6 |
2019 | 107 |
2020 | 128.3 |
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It means that the Federal Reserve prints money and uses it to buy debt. Technically, they are supposed to sell back the debt at some point but it's clear they never will. In a way, it's a tax on everyone who owns U.S. dollars.
Right now, almost all the new debt is purchased by the Federal Reserve using newly-printed dollars.