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Strategies & Market Trends : Mish's Global Economic Trend Analysis
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To: Elroy Jetson who wrote (89399)10/28/2008 3:38:05 PM
From: Haim R. Branisteanu  Read Replies (1) of 116555
 
If the number you posted are correct then the external debt of the US government is relatively small compared to the GDP.

I read somewhere that the TOTAL US debt is in the range of 51 trillion Federal, State,Corporate and consumers.

Based on the FED Z1 report total national debt is 47 trillion - servicing this debt at an average interest rate of 4% results in around $2 trillion a year.

There is no chance in heaven that a GDP of $14 trillion will generate enough money to service interest payments of $2 trillion a year - or I am mistaken?

federalreserve.gov

In any case it seems that already in 2007 the whole US economy run a net deficit

(G-19 shows total consumer debt close to 2.6 trillion at 3.75% to 5.5%)

the question is where all the money for the bailouts are coming from?
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