Tuesday, April 04, 2006

The Effect of Debt

What will be the future effect of the currently amassed debt?

Well, how much debt is there? We know USA Gov Inc will soon own 9 trillion dollars.
But what about the total debt of everyone and everything in the Good old USA?

Closer to 40 trillion..

A more detailed breakdown:

It may or may not be coincidence that the loss of the dollars link to gold occurred not long before the debt starts to explode. I don't know, you can draw your own conclusions. What will be the effect of all this debt on the economy, with rising short and long rates? Again, I don't know, but I read it as a more negative than positive. Surely debt needs to be paid back at some point?

Images from The Money Files


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