National Debt = 28 Eiffel Towers made of Pure Gold

$9 TRILLION
- Is roughly four times Britain’s GDP
- Equates to $1,500 for every man, woman and child in the world
- Would buy all the tea in the world for the next 2,000 years.
- Is enough to solve the Palestinian crisis by rehousing every Israeli and Palestinian family in a £1.5m detached house in Henley-on-Thames
-Would build 28 Eiffel Towers — constructed out of gold.
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IF YOU are worried about how much you owe on your credit cards, this might put things in perspective: America’s national debt limit was increased yesterday to $9 trillion. That’s $9,000,000,000,000 — enough to buy Buckingham Palace 9,000 times.

The increase, passed by Congress, allows the Government to borrow another $781 billion (£447 billion), increasing the national debt limit — the maximum America can borrow — from $8 trillion and $184 billion to $8 trillion and $961 billion.

If the debt ceiling, which is set by Congress, had not been raised by March 24, the Administration would not have been able to borrow more money and the US would have begun to default on its domestic and foreign obligations, an untenable consequence.

The vote to increase the debt limit, requested by the White House, is the fourth since Mr Bush took office. In 2001 the national debt was $5.7 trillion. Today it has ballooned to $8.2 trillion, figures rarely talked about in Washington.

The national debt is the total amount owed by the Government. It is not to be confused with the federal budget deficit, which is the yearly amount by which spending exceeds revenue. When budget deficits are big, the national debt inevitably increases.

When Mr Bush took office he inherited a $236 billion budget surplus. Bill Clinton, his predecessor, had used budget surpluses to pay down some of the national debt in his last two years in office. Mr Bush also inherited some extraordinarily overoptimistic projections. Experts pronounced that budget surpluses would increase to $5.6 trillion over ten years, and there was even heady talk of paying off the entire national debt with the proceeds.

Since then a combination of factors — the September 11, 2001, attacks, unexpectedly low tax revenues, Mr Bush’s tax cuts and runaway government spending — have plunged the yearly budget back into deficit. This year it will reach nearly $400 billion.

What worries many analysts is the amount of US debt financed by foreign governments and banks, particularly in Asia. The national debt is split between publicly held debt — money owed to US and foreign investors — and money owed to branches of the Government. Nearly half the publicly owed debt is held by foreigners. Japan is the biggest creditor, at $668 billion. China, the second-biggest, recently increased its stake by $40 billion to $263 billion.

“We used to have much less held by foreigners,” Alice Rivlin, a former budget director for Mr Clinton, said. “It makes you much more vulnerable to people’s agendas.”

Historically, today’s national debt is the highest in dollar terms, but not as a percentage of GDP. In 1946 it was $270 billion — 122 per cent of GDP.

Today it is 65 per cent of GDP, very close to the postwar high of 67 per cent in 1996.

America has had a national debt since 1791, when it was $75 million. Today it rises by that amount every hour.

http://www.timesonline.co.uk/article/0,,11069-2090441,00.html

 

the us national debt is really sad for the youngest generation of americans. those of us who are my age (20s) will probably experience this debt as a GOOD thing (over the next few years)--a big boost to our economy, but in the long run it will majorly discourage investment and the us bigtime.

 

Generation Y is going to feel the brunt of the upcoming economic downturn. The US is headed toward the greatest economic crash I've ever seen an economic "atomic" bomb. We are saving at a negative rate(not me personally) and the average American owes thousands in credit card debt.

With our manufacturing jobs going to India and China and Illegal immigration at an all time high, the US will go to third world status in 20 years unless something is done to stop it.

 

You over-react

1. Many countries have big debts to USA
2. Inflation eats it
3. USA have nukes, they don't need to pay

 

Inflation eats what?

The government/military industrial complex has control of nukes, not the rest of us. And what does having nuclear weapons have to do with debt and the economy?

The US owes a lot more than any other country. We owe what, 7 trillion dollars? I don' think all the countries combined who owe the US can pay that off, even if they suddenly paid back all the money they owe us.

Also, remember that our debt is going up on a daily basis.

 

Rich Dad Poor Dad fan?

or

a Macro Economics Major?

This is a concept not many understand.

tom

 

You'll probably change your mind if you read a few dozen books about it.

I know that it's coming, and you'll know it too, the difference is I know it now and you'll know it later. I am getting ready, all savings converted into PM's, couldn't care less about inflation/hyperinflation. Nearly not self-reliant yet, but working on it whenever I have a chance. Farmers were the last to feel Great Depression in 1929.
I just wish you could legally own a few guns where I live.
It's going to get so bad I get a stress just thinking about it. Not because of how it will affect me, but because of how it will affect Joe Sixpack. I thank God all the time that I know it's coming

 

The money becomes cheaper and cheaper every year

Well if the one you borrowed from don't have any, then you don't have to repay.

I never said that you owed less than you, I just said that they owed.

 

I agree that we will see a bigger inflation the comming years, US will probably print extra money if they want to repay it. So it's a great idea to buy some gold if you are rich already.

Unless some scientist breaks the code and start to massproduce gold

 

Our government is taking care of their cronies while setting the rest of us up for a fall. When the shit hits the fan, the already dramatic rich/poor divide in this country will be significantly increased.

Anyone have any opinions on how, as individuals, we can insulate ourselves from the upcoming economic crisis?

 

Do you have a crystal ball? What economic crisis, so we narrow down your question.

Example: Everyone becomes healthy. No more disease, that would cause an immediate loss of 6% of our GDP.

thx,

tom

 

Well, Tom, it's the same crisis that everyone is talking about right now. The one related to soaring energy costs, an astronomical national debt (you know, the topic of this very thread), the continued overseas outsourcing of jobs, and the widening trade deficit. The likely outcome will be rising unemployment and a lowered standard of living for most people in this country. If you don't think any of this is a problem, perhaps you could get your crystal ball out and let us know why we shouldn't be worried.

 

Energy is a global issue, no where to run.

National debt, has been around for a long time, so I don't understand how you think it's an immediate issue to prepare for.

Widening trade deficit is a multi-faceted issue, what do you propose to change it, or prepare for its increased widening?

As for a crystal ball race with you since no NEW problem was stated, I think today's problems, will be tomorrow's joke, today's assets will be tomorrow problems. Example:

1. Today's unemployment rates are lower, a decade ago it would have been a point of partying, but today, it's an issue of doom and gloom.

2. If outsourcing is so high, and America's population continues to grow(especially through illegal immigration), how come employment rates are very good? Sure outsourcing is higher, but the balance must be coming from in-sourcing too. So, the news would have been good years ago, low unemployment rats, but today, America is for sale and only non-Americans own it.

Not that I don't seen any problems, I don't see any NEW problems. Unless you are relatively young, and new to the world, these games have bee played out many, many times. Just that now with people proposing to be experts about DOOM, and bad news sells, and reaches a broader market with our information society, only the newbies seem to be panicking, while the rest of us know how to prosper from changing markets.

Story I was told:

Sailing along, the wind changes.

An Optimist spends time thinking the wind will change enough to aid to his speed.
A Pessimist panics thinking a storm is coming.
A Realist, adjusts his sails.

tom

 

It won't, didn't you read my posts?

 

Energy is a much bigger problem in this country than in most places in the World because we have built a vast and inefficient infrastructure that relies on cheap energy to function.

9 trillion dollars is a far bigger debt load than we have had in the past. At what point do we start to worry? Do we ever worry?

Sure unemployment is low. But it's where people are working that is the problem. Good paying middle class jobs are hard to come by these days. But you are correct, anyone who needs a job can surely find one at Wal Mart.

 

Yes I read them. I would hardly call your "evidence" conclusive.

 

How can you not see something wrong with this?

1 World $ 12,700,000,000,000 2004 est.
2 United States $ 8,837,000,000,000 30 June 2005 est.
3 United Kingdom $ 7,107,000,000,000 30 June 2005
4 Germany $ 3,626,000,000,000 30 June 2005
5 France $ 2,826,000,000,000 30 June 2005
6 Italy $ 1,682,000,000,000 30 June 2005 est.
7 Netherlands $ 1,645,000,000,000 30 June 2005
8 Japan $ 1,545,000,000,000 31 December 2004
9 Spain $ 1,249,000,000,000 30 June 2005 est.
10 Ireland $ 1,049,000,000,000 30 June 2005
11 Belgium $ 980,100,000,000 30 June 2005 est.
12 Switzerland $ 856,000,000,000 30 June 2005
13 Canada $ 600,700,000,000 30 June 2005
14 Sweden $ 516,100,000,000 30 June 2005
15 Austria $ 510,600,000,000 30 June 2005 est.
16 Australia $ 509,600,000,000 30 June 2005 est.
17 Hong Kong $ 416,500,000,000 30 June 2005 est.
18 Denmark $ 352,900,000,000 30 June 2005
19 Portugal $ 298,700,000,000 30 June 2005 est.
20 Norway $ 281,000,000,000 30 June 2005
21 China $ 242,000,000,000 2005 est.

 

I might be cazy, but with some easy math, I discovered that that the index for the world is way underestimated. I can get a bigger number by just adding countries 3-10. Also, United States debt should be included in the world debt, as US is also a part of the world.

 

You also have to take into consideration the dates. This information came from http://www.cia.gov/cia/publications/factbook/rankorder/2079rank.html. But even if you put aside the world part and just compare the countries as they are, notice the size of the gap?

 

So what? The GDP of US is still 30%. What can the debt share be? probably 20%-30%.