A Perspective on Debt

I came across this debt ticker over at Marvelous Medley:

Just look at that number…  $11 Trillion dollars and growing fast! A trillion is a large number, and a bit hard to wrap my head around, so I looked around for some comparisons. I came across this over at tysknews:

Trillion = 1,000,000,000,000. 
The country has not existed for a trillion seconds. 
Western civilization has not been around a trillion seconds. 
One trillion seconds ago – 31,688 years – Neanderthals stalked the plains of Europe.

NPR gave this for comparison:

$1 Trillion would be enough money to buy about a 1,000 boxes of Girl Scout cookies for every person in the United States.

And here is a youtube video to give a bit more explaination:

Debt SurgeIt is hard to wrap one’s head around this number. Take the above, multiply it by 11. Now you have our current debt. Next year, we’ll be adding around $2 Trillion to that number. And we will continue to add Trillions to the debt every year until we get this out of control spending in check.

The United States GDP was just over $14 Trillion in 2008. Yes, our debt is nearly as much as our entire GDP! The interest payments on this debt is the third largest item on our budget at over $412 Billion. Now, throw in that the Federal Government alone is slated to spend over 27% of our GDP this year. Certainly someone other than me has to see the obsurdity in this.

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Posted under Economy

Written by admin on March 24, 2009

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Stimulus Rush and AIG

How did the AIG bonuses get approved? It was approved by the members of Congress that voted to approve the stimulus package. The rush to vote prior to reading and understanding the bill is the reason the AIG mess hit.

Hat tip to Richmond Tea Party.

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Posted under Economy

Written by admin on March 23, 2009

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Followup on Chris Dodd and AIG

A reader yesterday was trying to suggest that Chris Dodd was innocent on the “Chris Dodd Amendment” that allowed the bonuses at AIG to go forward. After his initial denial, Chris Dodd has come out and admitted that he was the one that put the amendment in. Hopefully this video will set the record straight. Hat tip to Vulcan’s Hammer.

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Posted under Economy

Written by admin on March 19, 2009

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Return Political Donations From AIG!

First off, hat tip to BoBo for coming across data on donations from AIG.

A lot has been made of employee bonuses at AIG, and for good reason. The bonuses were part of a legally binding contract prior to money being given to AIG. Chris Dodd added an amendment that provided an “exception for contractually obligated bonuses agreed on before Feb. 11, 2009.” Oddly enough, the very bonuses everyone is up in arms about are part of that exception.

Since we are watchdogging money closely, as we should be, perhaps we should look at having politicians return political donations that were made from AIG to their campaign. AIG was not in a condition to be giving out political donations at that time, and giving those donations surely didn’t help their financial situation.

I do find it interesting who the top person is on their donation list. I will give the benefit of the doubt to Dodd though and put aside any thought of the amendment having anything to do with AIG being a loyal donor. Regardless, it would be a wonderful gesture if Dodd returned the $103,100 that was donated to his campaign. Obama could return his $101,332 and McCain could return the $59,499. Heck, if all the politicians returned last year’s donations, AIG could get nearly $600,000 back!  It isn’t much, but sometimes you have to take some baby steps in order to gain some momentum.

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Posted under Economy

Written by admin on March 18, 2009

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