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Representation of US Debt With $100 Bills
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    Representation of US Debt With $100 Bills

    http://izismile.com/2011/07/27/stagg...ls_9_pics.html

    Damn! No wonder US is called the mega Greece...

  2. #2

    JohnnyChance's Avatar
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    Mega-greece?

    Odd choice to use the World Trade Centers in the graphic...
    "God sends meat and the devil sends cooks." - Thomas Deloney

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    That's a great visual aid to bring the problem home. My only quibble is on that last graph. That's not the US National Debt, or even the Total US Debt (the debt owned by federal, state, and municipal governments, US corporations and private citizens) which stands at just north of $50 Trillion. Instead, that $114.5 trillion is what's called the US's unfunded liabilities. These are not funds that are owed to anyone, they are projected funds that will be expended in the coming decades that don't have a revenue offset. It's like a vendor committing to his suppliers to buy 50% more inventory every month forever, but his sales trends aren't increasing. He may not be currently in debt, but unless he starts selling more or charging more, he will be soon! Except this isn't a vendor, this is the entire nation, government and private sector included (though mostly government as private sector doesn't generally make these types of commitments).

    So the statement "114.5 trillion dollars. This is the US debt now." is a bit misleading, but definitely a figure to pay attention to. It's a great graphic though!

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    For those interested, here's an article that touches on the concept of our (the US govt's, anyway) unfunded obligations. They don't call it that, but that's what they're getting at.

    http://money.cnn.com/2011/07/27/news...=yes&hpt=hp_t1

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    That should be piles of Yen.

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    *edit* that should have been Yuan. Piles and piles of Yuan.

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    The alleles created by mutation may be beneficial

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    Quote Originally Posted by bprescot View Post
    That's a great visual aid to bring the problem home. My only quibble is on that last graph. That's not the US National Debt, or even the Total US Debt (the debt owned by federal, state, and municipal governments, US corporations and private citizens) which stands at just north of $50 Trillion. Instead, that $114.5 trillion is what's called the US's unfunded liabilities. These are not funds that are owed to anyone, they are projected funds that will be expended in the coming decades that don't have a revenue offset. It's like a vendor committing to his suppliers to buy 50% more inventory every month forever, but his sales trends aren't increasing. He may not be currently in debt, but unless he starts selling more or charging more, he will be soon! Except this isn't a vendor, this is the entire nation, government and private sector included (though mostly government as private sector doesn't generally make these types of commitments).

    So the statement "114.5 trillion dollars. This is the US debt now." is a bit misleading, but definitely a figure to pay attention to. It's a great graphic though!
    Very misleading, but a fun graphic nonetheless.

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    Senior Member EdipisReks's Avatar
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    Quote Originally Posted by oivind_dahle View Post
    No wonder US is called the mega Greece...
    only by people ignorant of economic systems. the US is not a household with a credit card, it's a functionally immortal system with 300 million people and a huge GDP (with a massive manufacturing base: iPods aren't made in the US, but if you want boilers, a ship to put those boilers in, or a crane to lift both the boilers and the ship, the US is pretty high on the list) and a high GDP/PPP per capita. Greece meets that first definition, marginally (they didn't have a stable democratic system just a few decades ago), a small population and a middling GDP highly supported by tourism and mediocre GDP/PPP per capita. that last one is a killer at their debt levels. the US doesn't have that problem. the US can only have similar problems when it's taken hostage by extremists who don't actually care about the country. see you Tuesday!

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    Quote Originally Posted by EdipisReks View Post
    only by people ignorant of economic systems. the US is not a household with a credit card, it's a functionally immortal system with 300 million people and a huge GDP (with a massive manufacturing base: iPods aren't made in the US, but if you want boilers, a ship to put those boilers in, or a crane to lift both the boilers and the ship, the US is pretty high on the list) and a high GDP/PPP per capita. Greece meets that first definition, marginally (they didn't have a stable democratic system just a few decades ago), a small population and a middling GDP highly supported by tourism and mediocre GDP/PPP per capita. that last one is a killer at their debt levels. the US doesn't have that problem. the US can only have similar problems when it's taken hostage by extremists who don't actually care about the country. see you Tuesday!
    What?
    Oh the U.S. has a problem ok, it is spending more than it pulls in by 50%. In 2010, the Federal government spent 3.77 trillion dollars, while it took in 2.15 trillion dollars. Even if you have a marginal tax rate of 70% (pre Regan marginal tax rate) of people making over $200,000, it would only be about 800 billion dollars and not enough to cover the current expenditures. We would still need to sell bonds to the Chinese to cover for the shortfall.

    It really is about a spending problem. We cannot sustain a 1 trillion a year deficit for the remaing years. We have to change the federal budgetary process which makes it manditory to add percentage increases over the previous year's base line no matter if the increase is needed or not. This goes for all programs and agencies.

  10. #10
    Senior Member goodchef1's Avatar
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    smart man this Peter Schiff, followed this guy before the recession. Saved and made $ with this guy.


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