As of today, total US Debt is $14.942 trillion (source), obviously an all time high. Q2 GDP, as was reported by the BEA three weeks ago, was $15.012 trillion in current dollars. In other words, the spread between total GDP and total debt has now collapsed to an all time low $70 billion. Incidentally, this number was $1.8 trillion at the beginning of 2010. Then we decided to take a quick look at the upcoming bond issuance and find that tomorrow the Treasury will announce approximately $99 billion in 2, 5 and 7 Year bonds to be auctioned off October 25 through 27... With a very appropriate settlement date: October 31, elsewhere known as Halloween. Yes, ladies and gentlemen: All Hallows E'en will be doubly scary this year: for the first time since World War II, US debt will officially surpass GDP on Halloween 2011.
It's enough to make you run and hide underneath the bed, isn't it?
As per usual in the political theater, there's a lot of noise going on: Occupy Wall Street protests, GOP candidates' infighting, insane EPA regulations, abysmal unemployment numbers, etcetera. It is of paramount importance, however, to remember the overarching threat to which all of it harkens back: our mushrooming national debt and unacceptably haphazard spending habits. This is the fate of America we're talking about. Focus, guys!