Saturday, September 11, 2010

US Debt is More Than All The Money in The World

Depending on where you put the number on our total obligations, the United States would need the entire economic output of the entire plant for a more then a year (or two) to pay back out debt. Debt/deficit problem; what debt problem...

http://www.nationalreview.com/exchequer/246159/our-debt-more-all-money-world

"I have argued that the real national debt is about $130 trillion. Let’s say I’m being pessimistic. Forbes, in a 2008 article, came up with a lower number: $70 trillion. Let’s say the sunny optimists at Forbes got it right and I got it wrong.

For perspective: At the time that 2008 article was written, the entire supply of money in the world (“broad money,” i.e., global M3, meaning cash, consumer-account deposits, checkable accounts, CDs, long-term deposits, travelers’ checks, money-market funds, the whole enchilada) was estimated to be just under $60 trillion. Which is to say: The optimistic view is that our outstanding obligations amount to more than all of the money in the world.
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