Plan Orange & All Private Sector Debt (chart)

PLAN ORANGE

Trillion

A

B

=

5

200% GDP

C

=

Excess private-sector debt in 2009.

Trillion

C

.... .... _ ... .._.

.... ....

._..

30

.... ....

35

0

-

..... ....

40

The United States Economy Private Sector Debt: 2009 v 1980 (as a % of GDP). We are OVERDRAWN: $21 Trillion $39 Trillion Private-sector debt 280% A GDP 2009 C 21 Trillion Debt 150% of GDP 250% GDP

10

25

20

15

15

150% GDP

$18 Trillion 130% of GDP

100% GDP

10

....

5

20

B

1980 Debt C

= Excess private-sector debt

C

= Debt to be dismissed in

bankruptcy, paid down by the borrower, paid off by the government, or cheated away with inflation.

50% GDP By Michael David White Copyright 2009 The New Mortgage Company April, 1, 2009

C

=

A

-

B

This graph compares the debt we had as a country in 1980 versus today. Our ratio of debt-to-income then (130% of GDP) compared to today (280% of GDP) suggests we have $21 trillion of excess debt. If that sounds like a big number, then you heard right. It’s astronomical. Plan Orange hypothesizes that this debt should, whenever possible, be dismissed through bankruptcy. The greater the debt which remains active but cannot be paid back, the more we will retard our ability to recover and grow again.