A few quick facts about US gross federal debt:Whatever you might think about the merits of government borrowing, the US federal debt stock is extraordinary achievement. How did the Feds convince people to lend them so much money?
Monday, March 16, 2009
US government debt soars to the heavens.
A few quick facts about US gross federal debt:Whatever you might think about the merits of government borrowing, the US federal debt stock is extraordinary achievement. How did the Feds convince people to lend them so much money?
Subscribe to:
Post Comments (Atom)
exponential growth - no more.
ReplyDeleteI have two words: Reserve Currency.
ReplyDeleteadjusted for inflation?
ReplyDeletePeople are gullible and think that US treasuries are secure and will be repaid.
ReplyDeleteBUT, if there's no US treasury in 30 years from now, something I don't estimate to be unlikely?
I don't believe the reserve currency thing will still be the case in 30 years from now, with Arab states producing less and less petroleum, and buying fewer and fewer dollars. The Chinese? They export their stuff to Europe, and get Euros (and some UKP and CHF) for it. The Japanese? They have their pensions to pay, so they'll more likely sell US treasuries.
Who remains?
Alas, it's only a matter of a few more years before the grandest Ponzi scheme of all begins to unravel. It will make Madoff look like a schoolboy.
ReplyDelete