Friday, September 10, 2010

Going Broke. We Have More Debt Than The Entire World Combined

This is pretty scary, but if you paid attention to everything and notice the debt counter at the top of my blog, you'd see that the REAL national debt estimate is now at $74 trillion. You know our debt and the world's debt will NEVER be paid off. Ever? One main reason why we are so far in debt? Bailing out the rest of the world while our society crumbles. I have argued that we can be anywhere in the world at the drop of a dime but can't help our own at the time of disaster. But on the flip side, without us, the world would be much worse off and everyone knows this.

National Review Online: 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.

Global GDP in 2008? Also about $60 trillion. Meaning that the optimistic view is that our federal obligations outpace the entire annual economic output of human civilization.

Full post here NRO

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