LIVE Gold Prices $  | E-Mail Subscriptions | Update GoldSeek | GoldSeek Radio 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page 

 GoldSeek.com >> News >> Story  Disclaimer 
 
Latest Headlines

Fortuna Silver: An Incredible Value Play
By: Dave Kranzler, Mining Stock Journal

COT Gold, Silver and US Dollar Index Report - December 13, 2019
By: GoldSeek.com

Beware Gold-Stock Downside
By: Adam Hamilton, CPA, Zeal Research

Japanification, Deflation and Backwardation in Gold & Silver and Base Metals
By: Darryl Robert Schoon

Precious Metals Update Video: Gold has found a home here
By: Ira Epstein

Asian Metals Market Update: Dec-13-2019
By: Chintan Karnani, Insignia Consultants

As The Financial System Melts Down Gold And Silver Will Soar
By: Dave Kranzler

Blowing Bubbles for Fun and Profit
By: Gary Christenson, The Deviant Investor

A Missing Motive
By: Ted Butler

When Will GDX Break-out?
By: Jordan Roy-Byrne CMT, MFTA

 
Search

GoldSeek Web

 
US Debt: Look At It This Way



By: Adrian Ash, BullionVault


-- Posted Friday, 15 January 2010 | Digg This ArticleDigg It! | | Source: GoldSeek.com

Seven ways to put the United States' national debt into perspective...

 

The SHEER SIZE of the US government's debt hasn't put off new bond buyers so far in 2010.

 

You've got to wonder what kind of news or debt it might take to deter them.

 

In just two days this week, the Treasury issued $61 billion in new debt twice as much money as Japanese households put into their domestic equity funds during all of 2009, itself a 50% jump from 2008.

 

Yet one "big bidder" still opted to lend the federal government one fifth of that sum, according to bond analysts speaking to the Financial Times at least. And overall, the government's creditors offered to lend Washington three times the money it sought.

 

Now, if the Treasury didn't need that $61,000,000,000 to cover 6.3 days of spending, the money raised in new bonds between Tuesday and Wednesday this week could cover 12 days of interest due on the outstanding debt, already running above $12.3 trillion and outweighing the market value of every company listed on the New York Stock Exchange.

 

Put another way, the United States national debt is greater than the GDP forecast this year for Japan, China, Brazil and Canada added together. (That's excluding the $107 trillion of unfunded liabilities yet to come, of course.) If today's lenders ever see their money again, they could just about buy all the gold ever mined in history all 165,500 tonnes of the stuff twice over at today's prices.

 

Or they could simply pay twice today's gold price, of course.

 

Repaying the US national debt looks a struggle, however. Settling $1 per second rather than racking up an extra $37,132 every second, as the federal government's scheduled to do in 2010 would take until the start of February A.D. 392,372. Settled for cash, and piled up in $1 bills, the current US debt would reach to the moon...and back...and back to the moon again...and then round the moon's equator ten or perhaps 20 times, depending on how much you squashed them.

 

Or to put the US national debt into historical perspective a very historical perspective the US government has borrowed the equivalent of $2.46 each and every day since the beginning of time...last computed to have occurred some 12.7 billion years ago, back when $2.46 really meant something.

 

For creationists sticking with Archbishop Ussher, that's $2 billion per year since God said "Let there be light"...back when fiat really meant something, too.

 

And lo! The bond market still kept on buying.

 

Adrian Ash

 

Formerly City correspondent for The Daily Reckoning in London and head of editorial at the UK's leading financial advisory for private investors, Adrian Ash is the editor of Gold News and head of research at BullionVault winner of the Queen's Award for Enterprise Innovation, 2009 where you can buy gold today vaulted in Zurich on $3 spreads and 0.8% dealing fees.

 

(c) BullionVault 2010

 

Please Note: This article is to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events and must be verified elsewhere should you choose to act on it.


-- Posted Friday, 15 January 2010 | Digg This Article | Source: GoldSeek.com





 



Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to GoldSeek.com

 news.goldseek.com >> Story

E-mail Page  | Print  | Disclaimer 


© 1995 - 2019



GoldSeek.com Supports Kiva.org

© GoldSeek.com, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of GoldSeek.com and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on GoldSeek.com. This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer


Map

The views contained here may not represent the views of GoldSeek.com, Gold Seek LLC, its affiliates or advertisers. GoldSeek.com, Gold Seek LLC makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of GoldSeek.com, Gold Seek LLC, is strictly prohibited. In no event shall GoldSeek.com, Gold Seek LLC or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.