Our GDP and Barry Bonds
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I want to talk a little bit about our GDP gross domestic product numbers came out yesterday. 3.3% pace, well above expectations. And the infamous, but he was great baseball player. No doubt about it. Barry Bonds. And what does our GDP and Barry Bonds have in common? Well, again, Barry Bonds, we know he’s not in.
the Hall of Fame record holder from the beginning of his career. He was a phenomenal baseball player all the way through to the very end, obviously caught up in steroids. You could see it physically in that, you know, you take a look at him in the earlier parts of career and then later on. And we all know that he was taking steroids or whatever.
human growth hormone, a myriad of different things. I can’t even remember what was going on, but I do remember Congress getting their underwear in a bunch over the entire thing. Neither here nor there. Would Barry Bonds have been a great baseball player if he had not taken steroids? Yeah, yeah, he was a great baseball player before he was taking steroids. Would he have hit the amount of home runs? Probably not, probably not. He went through a stretch period of time where you could
You know, you didn’t even pitch to him. He would have had probably closer to 850, 900 home runs in his career. They were walking him 200 times plus a year. Think about that for a second. One year as on base percentage was over 600 for crying out loud. Anyway, what does this have to do with GDP? The GDP numbers that we’re seeing are, they’re great.
but they’re due to, well, you want to call it performance enhancing drugs, I guess you can. Government spending, debt, same thing. GDP wouldn’t be close to this if it wasn’t for all the deficit spending and adding money to our debt at this point, I wouldn’t even be close. So we got, we’ll take it in nominal terms, trying to make sense out of this to you.
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Fourth quarter GDP rose by $329 billion. $329 billion, that’s 27.939 trillion. Okay, so it’s a number, fine. Over the same period of time, the U.S. budget deficit rose by more than 50%.
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billion dollars. Our budget deficit rose by 510 billion dollars. Our GDP grew by 329 billion dollars. The increase in the public U.S. debt, 834 billion, 154 percent more than the increase in GDP. So it takes one dollar and 55 cents in budget
deficits to generate $1 of growth. And it takes $2.50 in new debt to generate $1 of GDP growth. Now, let’s put this in words so people can understand. If you ran a business and it was operating like this, how long do you think you could stay afloat? You could if you had constant access to capital.
and you could keep borrowing money. We see this happen during hype cycles when money is cheap like we’ve seen during the pandemic and prior to that ultra low interest rates and we see all these companies that eventually go kaput. But this is our government right now. So our debt grew by 2.581 trillion last year. Every dollar in GDP growth cost us
$1.69 in new debt. Do you think that’s sustainable? Again, these are numbers, these are facts that you could present to your friends on the left and their heads are going to spin, or the butt monkeys are going to come out. But this is the reality. This is the reality. Would Barry Bonds have hit as many home runs if he wasn’t on Royds?
Come on, man. Would our GDP have grown if it wasn’t for all of this ridiculous government spending? Come on, man. Watchdog on wallstreet.com.
