Per person: <$75 trillion of debt outstanding, > With 300 million Americans, that's $75 million for 300 which is 750,000 for 3 which is $250,000 per person. At 0% interest, which is what they are paying me at present, that's a manageable debt. They don't even pay me a Happy Meal per million dollars per year.
At 2% $250,000 is only $5,000 per year. With a GDP per person of about $40,000, that leaves enough for enough groceries to maintain obesity levels.
At 3%, which is traditional interest rate level due to life expectancy of humans [which has increased dramatically over the decades and centuries], it's still doable.
$75 trillion is not a big deal.
But more important is competition from other currencies which are more efficient and reliable and which will render those US$ debts extinguished by devaluation of the US$ relative to other currencies, irrespective of pixilated pixelation production of more US$. Even if quantitative easing is stopped permanently and no more dilution is done, the value of the US$ will go down the gurgler because there is no reason that the rest of the humanity should transfer funds with USA people clipping the ticket.
Mqurice |
