This chart below comes from the weekly slide deck (December 1, 2010) of Bianco Research (which is “must reading” around here).

I cannot recall ever seeing a chart that put the deficit into such crisp context. (The one variable I’d like to control for is Federal govt as a percentage of GDP).

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Surplus/Deficit As A Percentage Of GNP/GDP

click for ginormous chart



Chart courtesy of Jim Bianco