Friday, March 17, 2006
$9 trillion in debt
The USA.gov just voted itself te ability to go to $9 trillion dollars in debt.
The factoid as to how much this debt is per capita is pretty awful, but I have also read that $9 trillion dollars would build 28 Eiffel Towers made of solid gold. That could be cool.
For what it's worth I figured something out that's kind of interesting - how long it will take to pay back the debt, assuming the USA.gov is somehow suddenly able to turn $1 million a day "profit". Now, the simple fact is that the Gov't has RARELY been able to "turn a profit", ever, but I won't go there... So, let's just pretend the USA.gov can actually pull a million dollars a day and use it to pay the debt.
First we take 9 trillion and we divide it by the million dollars.
that gives us 9 million days to pay it.
Then we divide the 9 million days by 365.25 (roughly the number of days in a year) and we get how many years it will take to pay back $9 trillion dollars in debt at the rate of $1 million dollars a day:
24,640.657 years.
Yes, 24,640.657 years.
Bascially, right around the next glaciation.
It ain't gettin paid back. Ever. I think we need to get that point out loud and clear:
Hello! China? Japan? South Korea? Great Britain? Hello? Guess what you guys: we're going to stiff you. You're not going to see a DIME of that money. Not now, not ever.
Sorry.
yours truly,
Stuart Studebaker
The factoid as to how much this debt is per capita is pretty awful, but I have also read that $9 trillion dollars would build 28 Eiffel Towers made of solid gold. That could be cool.
For what it's worth I figured something out that's kind of interesting - how long it will take to pay back the debt, assuming the USA.gov is somehow suddenly able to turn $1 million a day "profit". Now, the simple fact is that the Gov't has RARELY been able to "turn a profit", ever, but I won't go there... So, let's just pretend the USA.gov can actually pull a million dollars a day and use it to pay the debt.
First we take 9 trillion and we divide it by the million dollars.
that gives us 9 million days to pay it.
Then we divide the 9 million days by 365.25 (roughly the number of days in a year) and we get how many years it will take to pay back $9 trillion dollars in debt at the rate of $1 million dollars a day:
24,640.657 years.
Yes, 24,640.657 years.
Bascially, right around the next glaciation.
It ain't gettin paid back. Ever. I think we need to get that point out loud and clear:
Hello! China? Japan? South Korea? Great Britain? Hello? Guess what you guys: we're going to stiff you. You're not going to see a DIME of that money. Not now, not ever.
Sorry.
yours truly,
Stuart Studebaker
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I believe that your calculation of 24K plus years to pay back that $9 trillion debt fails to take into account that the balance would still be accruing interest during that payback period. Assuming an interest rate of 5% per year, the daily interest would start out at about $1.2 billion per day.
So that $1 million paydown per day doesn't even cover the vig.
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So that $1 million paydown per day doesn't even cover the vig.
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