- Yesterday we learned that in August, American consumers
borrowed their way to 20% of the nation's GDP on an
annualized basis. That tune will surely rise to the top of
the charts... but it may never reach #1. For today comes word
from the Treasury Department that through the second quarter
of 2003, U.S. "gross external debt" topped $6 trillion
dollars. That's sure to be a chart-buster.
- The Treasury report, which, according to Reuters, was
issued in an attempt to comply with new 'transparency' rules
established by the IMF, shows that the U.S. government now
owes nearly 59% of the nation's GDP to foreign governments,
central banks, private banks and other investors. In the
next three months alone, $1.2 trillion in principal, and
another 53 billion in interest, will come due. With tax
receipts of only $2 trillion per annum... argh... why bother?
Don't they distribute calculators among the pocket-protected
policy wonks in Washington?
- Better yet, how do you suppose John Snow gets any sleep at
night? As we have made abundantly clear, most of America is
juggling debt payments: mortgages, car loans, skyrocketing
tuitions, credit card debt etc., etc., etc. But what must it
be like to have to come up with $1.2 trillion in principal
in the next three months? Come to think of it, John Snow
must sleep well at night, after all - it's not his money!
...from the Daily Reckoning. |
