Global Politics, International High Finance, Propaganda

Sunday, 19 October 2008

How Big Is The US debt?

A dollar bill measures 0.01" thick.

Stack one Million of them on top of each other and you end up with a stack 833 feet tall.
Stack one Billion dollars on top of each other and you get a stack 157.8 miles high
(the highest ever recorded flight was an experimental plane called the X-15 and it reached a height of 67 miles, not even halfway up our stack)

Stack one TRILLION dollars on top of each other and the stack now stretches 157,828.3 miles high.
(The circumference of the earth is 24,901 miles so this stack would go round the Earth 6.3 times. That means you could stand at a point on the earth and there would be 6 rows of dollar bills, side by side, that went from horizon to horizon. And remember, this is not laid out end to end but laid flat on top of each other)

How much debt has the US government taken on? How much debt does it currently carry?

On 16 October 2008 the US government's debt ( The "national debt" of the US ) was  $10.2 Trillion!
This is a link to a site giving details of the Federal budget

10.2 trillion dollars of debt. In other words 1,609,849 miles worth of greenbacks.
That is: to the moon and back 3 times.
 
How much money do the US banks claim to have?

"According to the Office of the Comptroller of the Currency’s Quarterly Report on Bank Trading and Derivatives Activities for  the Second Quarter 2010 the notional value of derivatives held by U.S. commercial banks is around $234.7 TRILLION."

Given that one TRILLION dollars stacked on top of each other stretches 157,828.3 miles, then 234.7 trillion will stretch :-

234.7 * 157,828.3 = 37,042,302

That is   37,042,302   miles.

Given that the circumference of the earth is 24,901 miles, this stack would go round the world 1487 times. That means you could stand at a point on the earth and there would be 1487 rows of dollar bills that went from horizon to horizon.

Mind you, this is not laid out end to end but laid flat on top of each other.

So the US banks appear have assets of at least $234.7 TRILLION just in derivatives. (That excludes other loans, mortgages, cash on hand etc)

However "derivatives" are not "things" like houses or wheat - they are BETS on the prices of things (like houses or wheat.)

Derivatives are BETS - they are actually gambles, but the US banks are classifying them as Assetts!  Most of the Assetts in US banks are gamblers bets.

The US banks held $234.7 TRILLION of gamblers bets in 2010.




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