Saturday, July 12, 2014

How Much Is A Trillion Dollars? President Obama will bet you 17 big ones that you have no idea.

How Much is a Trillion Dollars? ($1,000,000,000,000) Lex Loeb Contributor Network . A trillion dollars is just a thousand billion dollars which is also the same thing as one million million dollars. $1,000,000,000,000 is the same thing as 1,000,000 x 1,000,000 just as 10 times 10 = 100 and 100 x 100 = 10,000 by adding the two zeros as they multiply. That still does not make it a lot of money if there are 300 million people in a country and one trillion dollars is to be divided by them that comes to just $3333.33 each. If there are just 80 million tax payers in the country that comes to $12,500 per tax payer if split evenly which is a bit more than $1000 a month if that amount is due in one year. So When government says it is in need of ten trillion dollars to spend in one year that means having $120,500 per tax payer if there are just 80 million of them and that starts to seem like a lot of money and it actually is too much money for just 80 million tax payers to be paying. That is ten trillion dollars and not just a mare single trillion bucks. A million dollars buys just 2 $500,000 upper middle class homes in most US Cities today and a billion dollars then only buys just 2000 such half million dollars homes which does not seem to be quite a lot of money until you realize that few banks in the US have over one trillion dollars in total assets on deposit. A trillion dollars buy 1000 times as many half million dollar homes as a billion dollars does which nets a total of 2 million half million dollar houses. The USA is a country with more than 80 million separate homes. 2,000,000 separate half million dollar homes. If you prefer to buy cars averaging 30,000 for a trillion dollar program that comes to over 33 million of these cars. On the other hand it might buy NASA both a moon base and one or two separate manned one way trips to Mars. What happens when the government is running an 8 , 9 or 10 trillion dollar budget deficit per year is leaving it owing more money than it may ever be able to pay back. Even if the government makes us all into tax slaves paying 75 percent or more of income to cover trillions and trillions of dollars in deficit spending, the government risks cannibalizing the very taxpayers it depends on for future taxation. Make too many taxpayers broke and there is no one left to pay. Foreigners are fools at some point to loan the US government money at any interest rate hoping to be repaid or they might expect the US government to go out and confiscated indexable private property to settle future claims. Government really just intends to print future money that never exists to pay all of its debts to debt holders domestic and foreign. Tax payers have more say in the mater than realized because they can stop reinvesting their money in American production and find better safer places for investment overseas and across national boundaries. This can exacerbate government debt loads causing them to monetize inflation or rather just to totally debase the dollar. The American people will start to notice when they see world gasoline prices go from $12 a gallon to over $20 while they may also notice their wages don't quite keep up at the same rate as the inflation. Workers who ask for inflation based raises risk losing the very jobs they are trying to protect because they don't receive their job pay roll checks in anything but US dollars. A trillion dollars can thus cost a lot more than just $3333.33 for each of 80 million tax payers. The need to sell government bonds to rationalize the debt is pure nonsense but not something that cannot be done on a long term and temporary basis. Reasonable debt can be a cheap way to finance reasonable government spending but too much debt to finance junk government is not going to grow productive forces in the economy to eventually service and pay off the debt. Before Long government can have claims on all the property in the country till there is no incentive in owning it. One has to wonder why it is that people like George Soros seem to want the US to have excessive tax and spend democrats in office while he complains that the dollar is likely to expire as the international currency of choice. It leaves a strange multi trillion dollar taste in one's mouth that the same people can be the ones supporting what seem to be destructive government policies. Is it that people like Soros have some ulterior motive to destroy the personal freedom Americans enjoy because he feels guilty about his own success or because he resents the large American upper middle class and wants to reduce them to the level of serfdom for his own political patronage? If there are 6 billion people on earth a trillion dollars will buy each of them about 67 $2.50 fast food hamburgers. The cows don't want to know how many cows that is but there might be fast food restaurants that might not mind the government subsidy. The funny thing about a trillion dollars is how few American Corporations could spend it wisely. Most corporations in business to make money could not invest that much money and make money over the long run spending it. Some investment firms have that much or more under conservatorship but these firms do not usually make all the decisions to spend it. When companies were valued at as much as half a trillion dollars in market value including , AOL, Microsoft and General Electric , at one point in time those market prices proved to be quite unsustainable. It means that having vast sums of money in the trillions of dollars to spend does not make spending it an exercises in wisdom. Money like that can cause prices to rise almost the way lunar tides work. With Government it seems that for every trillion dollars they don't spend the more sensible their economic policy is. As the multi-trillion dollar deficits of a few years ago become ten , twenty and soon hundreds of trillions of dollars in spending as the years go by and the figures compound, Prices in the tax liable economy will have to rise to counteract productivity losses. None of the congressmen who voted for the inevitable unintended consequences plan to be taking any credit for them, but if there were to give me a trillion dollars today I will be willing to pay them hamburgers tomorrow or lets say anything else they want as John Maynard Keynes , the famous economist originally said, "in the long run we are all dead." .

No comments:

Post a Comment