These numbers bother us common people: Fourteen TRILLION, twenty TRILLION.
Those are round numbers centered on the debt ceiling brouhaha; more on that later. This little idea is about the numbers.
For some reason, us teetering on the brink of losing some 20 trillion doesn’t seem to affect the bond markets, or other commodity exchanges for that matter. Not significantly. Maybe if the actual default or downgrade happens it’s a different story, but It’s pretty much business as usual (Thursday, July 28, 2011 1500 PST) today.
This makes me think we common folk who get upset about 20 trillion aren’t really thinking big enough. I’d get upset if I was 20 trillion in the hole. I know my bank would. I was only 100K down and look what happened to me!
Yet here we are and there’s no collapse started, no blinking of financial eyes yet.
Over a 20 year period, let’s say, we find a way to repay our debts. Countries aren’t like people. If we can repay even 10 percent of what we owe we can save ourselves dozens, if not hundreds of billions each year. Plus, countries tend to outlive people, so 300 in country years is what, 25 or so in people years?
I think a longer-term, larger-scale view of the economy is needed, and a different method than we presently use for the country to apply that economy.
And it seems like major powers must share at least a longer-term outlook, too, because they aren’t that all upset with us yet. Since sentiment has nothing to do with it, I can only conclude they think 20 trillion from us is a small blurb.
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