US National Debt now literally more than all the money in the world

[Life]

Source!

Just a reminder: We are in trouble.

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.

So, John Boehner wants to roll spending back to where it was in the last year of the Bush administration. Okay, great. Nice start.

Now, what else have you got?

0__________________________o

Okay, so now what?

(Mods please move if this could go in a better section)

 

[Luigitoilet]

The solution to this is easy. Print more money! Bam!

 

[Glöwworm]

print more money

obv

edit: ninja'd by luigitoilet

 

[Tomo Takino]

Its not that important really.

And moving spending back to Bush is not the way to go about things, he's the reason we are in debt. Well not him, but the policies he had wracked up a lot of debt.

 

[Namaste]

Please, Boehner and other republicans want to "limit government spending" by just cutting off social programs, while spending more then what they "cut" on wars in Iraq.

Fun Fact! If McCain had won the Election, and followed what he said he would do, then he would of wound up costing America more then $500 billion more then Obama has. Wars cost money, who would of guessed it

 

[GreenKirby]

Extra fun fact: The GDP for the post WW era as far as who's currently running the White House is always higher under a Democrat president.

 

[Crimson King]

Lol at the printing more money suggestions.

Yeah, we are screwed. We'd have to cut spending to the bone and majorly raise taxes.

 

[cutter]

Yes, print more money, because I want to plaster my room with money wallpaper and burn it instead of wood!

 

[GreenKirby]

Yeah, we are screwed. We'd have to cut spending to the bone and majorly raise taxes.

Sheesh why don't you just ask Americans to diet and exercise while you're at it.

 

[Budget Player Cadet_]

What we need is a reform to the system.

The fact is, there is more money than can be produced because the banks that create money loan it to the government at interest, and it only becomes valid once the government gets it. In short: you have to pay interest with money that cannot exist. Correct me if I'm wrong here... But the system is bound to spiral us all deeper and deeper into debt, with higher and higher inflation. Regardless of how much we produce, it is not only impossible to get out of debt, it's impossible to stop gaining debt at an alarming rate. It doesn't matter how much we slash spending and raise taxes.

Although I suppose the better question is, "Does it matter?". Yes, the USA has a debt of so much. But what's going to happen? Is the Federal Reserve going to repossess the country?

 

[Dragoon Fighter]

What we need is a reform to the system.

Agreed.

The fact is, there is more money than can be produced because the banks that create money loan it to the government at interest, and it only becomes valid once the government gets it. In short: you have to pay interest with money that cannot exist. Correct me if I'm wrong here... But the system is bound to spiral us all deeper and deeper into debt, with higher and higher inflation. Regardless of how much we produce, it is not only impossible to get out of debt, it's impossible to stop gaining debt at an alarming rate. It doesn't matter how much we slash spending and raise taxes.

No, you are completely correct. No argument here.

Although I suppose the better question is, "Does it matter?". Yes, the USA has a debt of so much. But what's going to happen? Is the Federal Reserve going to repossess the country?

No, but china will reposes the U.S.A. . Wait... **** that might actually happen .

 

[pickle962]

I got a solution. It starts by getting rid of all those corrupt ***holes in our government who only care about themselves and vote in people who not only ACTUALLY represent we the people, but also have deep knowledge about money and economics...

 

[StinkomanFan]

That won't work. The moment governmental power touches a person their mind goes down to a firey hell.

 

[Luigitoilet]

I got a solution. It starts by getting rid of all those corrupt ***holes in our government who only care about themselves and vote in people who not only ACTUALLY represent we the people, but also have deep knowledge about money and economics...

Good luck. Anyone you will be able to realistically vote into power is corrupt.

 

[Namaste]

And anyone who isn't corrupt soon will be.

 

[Budget Player Cadet_]

Pretty much. You know what will happen when we find a president willing to stand up to big banking? They will be offered a choice where it's first their well-being, then their lives, then the economy of the country which is on the line. Think of what we did in Ecuador, Venezuela, Iraq (twice, because it didn't work the first time!)...

As said, the system is broken! We are so far in debt, they own us. We can't do **** about it. We work our tedious little jobs for tedious little salaries that become worth less and less. And the saddest part? They made the system this way, so that you can't win or even break even.

 

[Mota]

Dam that is a lot of money. Slaves to the system

 

[Aesir]

I got a solution. It starts by getting rid of all those corrupt ***holes in our government who only care about themselves and vote in people who not only ACTUALLY represent we the people, but also have deep knowledge about money and economics...

And who might that be?

Problem is Obama didn't go far enough, sure he spent a lot but that money didn't focus on things we really needed. It was only long term investments which really will only be helpful years down the line. Another problem arises with the fact that we were harsher with GM than we were with the banks. We basically took over GM, but with the banks we just gave them money. (Which saved them from collapsing and causing a depression.) Had we just taken them over, it probably would have been more beneficial toward us. Plus less distracting issues like AIG bonuses which clogged media up for many news cycles.

Furthermore it doesn't help that we have a determined minority that will hold up anything and everything. Keynesian economics works when it's not half *****, unfortunately given the political climate and how dumb the senate functions 2 years wasn't enough time for democrats to fix the economy.

 

[1048576]

The debt is definitely in the 13-14 trillion range, not 70 lol.
http://www.defeatthedebt.com/?e=1&gclid=CLm_9-TEkKQCFZRa2godIkQVHA

It's not as bad as everyone says. After WW2, we had a similar debt/GDP ratio when we were like 2.5 trillion in debt (in 2000s dollars.) http://www.brillig.com/debt_clock/faq.html
We never paid that debt back either. But our GDP grew so it wasn't as daunting. IMO, as long as we keep the debt constant (by not pissing capital away on war,) our GDP will rise again, and the debt will be trivial again.

 

[Jim Morrison]

Print a 70 trillion dollar bill and just hand it to the world.

 

[Jonkku]

Print a 70 trillion dollar bill and just hand it to the world.

But they'd double the amount of money in the world.

That would mean its worth is halved.... And the number in their debt would be doubled.

And then that 70 trillion wouldn't be enough to pay for it anymore.

 

[Jim Morrison]

I mean, just don't tell anyone about it, and suddenly give it like "hey we got the money okay bye we're done!"

 

[Budget Player Cadet_]

ITT: someone has a very, very poor understanding of money economics.

 

[Jim Morrison]

Lol, the only problem I see is YOU.

 

[Dragoon Fighter]

Lol, the only problem I see is YOU.

Actually he is correct on the fact your wrong. Let me explain.
The more money you print the less that money is worth so If you print your seven trillion dollars it will no longer be wroth seven trillion dollars killing the point of printing all that money in the first place. Also not only will it make its self worth less but it will drag all the value of YOUR money with it (as well as mine).

 

[Glöwworm]

economics

 

[¯\_S.(ツ).L.I.D._/¯]

The National debt is not 130 trillion, it's about one tenth of that. That source is bull****.

 

[GoldShadow]

Source is talking about an estimate of real national debt. Estimates for this range anywhere from $50 trillion to, as this guy says, $130 trillion.
http://usbudget.blogspot.com/2008/07/what-is-real-national-debt.html

 

[¯\_S.(ツ).L.I.D._/¯]

I didn't see any figure in there above 53 trillion.

 

[GoldShadow]

That was one source I linked to for some general info. A google search will yield numerous estimates and methods for calculating it.

 

[JOE!]

Actually he is correct on the fact your wrong. Let me explain.
The more money you print the less that money is worth so If you print your seven trillion dollars it will no longer be wroth seven trillion dollars killing the point of printing all that money in the first place. Also not only will it make its self worth less but it will drag all the value of YOUR money with it (as well as mine).

wrong


you just got to believe


money is just fukcing paper, we BELIEVE it's worth what it says on it....

 

[.Marik]

Actually he is correct on the fact your wrong. Let me explain.
The more money you print the less that money is worth so If you print your seven trillion dollars it will no longer be wroth seven trillion dollars killing the point of printing all that money in the first place. Also not only will it make its self worth less but it will drag all the value of YOUR money with it (as well as mine).

You're getting trolled.

 

[Luigitoilet]

wrong


you just got to believe


money is just fukcing paper, we BELIEVE it's worth what it says on it....

whoaaaa man, that is deep! can you pass the bong plz

 

[JOE!]

sure brah

anyways, our money system is seriously all based upon the belief that our notes are worth what we say it is...

a 1 is worth 1 dollar because everyone belives it is, same with the 5, 10, 20, 50, 100, etc, when they are all just pieces of paper.

So this 70 trillions dollar bill theory is bull because you have to get the ENTIRE PLANET to believe that thing is worth 70 trillion (monies) for it to be anything more than a piece of paper.

 

[Jonas]

Ok let's say you have 10k in the bank. Let's say somebody at the bank prints out a note that says how much money you have on your account. Writing a few extra zeroes behind the number won't just make you richer. That's basically how money works (well not really, but you get the idea).
The note itself just indicates how much money you have, it doesn't dictate it. Similarily, all the dollar bills in your pocket are not actual money - they're just tokens that represent how much money you (or rather, the National Bank) has. If the National Bank just decides to print more money, it's kinda lying about its wealth. It would have to compensate by lowering the value of the actual money.

 

[JOE!]

which again, ties into the fact that everyone has to accept that those pieces of paper actually represent something...

 

[Jim Morrison]

ITT people took me seriously :|

My faith in Pool Room...
It is restored.

 

[Jonas]

which again, ties into the fact that everyone has to accept that those pieces of paper actually represent something...

Yeah, just make people believe in things that doesn't have anything to do with reality, and all the troubles in the world will go away.

 

[JOE!]

See: religion

 

[OizenX]

Lets sell california to china.
America's crime rate would drop significantly.
anyone who takes this seriously should reconsider life.