Thursday, October 22, 2009
Check out this link, and you can see how much the US owes and has in assets, both in the government and held privately. There's a lot more I'd like to see this page become, as it doesn't tell the whole story yet. I'm going to also put a link to this on the column at the left.
There's a lot of interpretation that can be done just from this data, but I'm not going to do that right now. There are a few important numbers to look at however.
1. Note the Gross Domestic Product (upper right), and compare to the US Budget Deficit (YTD, upper-left) and the interest on Debt (upper left, a little lower). When the interest on debt grows too large, it is a drain on the economy, in that it cuts into the government's ability to pay for other programs. Who do we owe all that principal and interest to?
2. The largest (by a factor of 30!) number on the page is Currency and Credit Derivates ($589.232284 trillion at 1:30 on Oct 22). This is the fabricated money partially responsible for the big trouble we are in. I am surprised to see that it is going down, and wonder what that actually means. Is somebody actually trying to regulate this, or is this currency being pulled off the market.
3. In many of these numbers, it's not simply the numbers that are important to watch, but the rate of change of the numbers, and the rate of change of that change (the acceleration).
agape to all,