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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Hawkmoon who wrote (85586)	8/27/2007 9:37:42 PM
From: TimbaBear	Read Replies (3) \| Respond to of 110194

Sure, we can afford more debt so let's pump it out! Bush has been doing his part. Now, what happens when you add the Government debt and the personal debt? How's that stack up per capita? How does the US savings per capita (the true measure of debt affordability) stack up compared to others?

To: Hawkmoon who wrote (85586)	8/27/2007 9:50:23 PM
From: Roebear	Read Replies (1) \| Respond to of 110194

Look at China according to same source, external debt is $231.19 a citizen, about 462 hours of labor at a low wage of say 50 cents an hour (average chinese wage varies, officially reported around a dollar/hour, 21000 yuan per year, assume 6 day week?, take the low side to be safe). US per cap external debt at 33339.98 divide by average wage of $18 an hour equals 1852 hours of labor. Then again my mother used to say when I was a young lad, now many years ago, "what has that got to do with the price of ducks in China?", meaning I was comparing apples and oranges or otherwise being obtuse. Perhaps the price of ducks in China is no longer such an outrageous thought?

To: Hawkmoon who wrote (85586)	8/28/2007 12:48:27 AM
From: rich evans	Read Replies (2) \| Respond to of 110194

Actually these statistics include the social security notes held in the social security so called trust fund. This debt is intrinsic in that US owes it to itself. The Feds including Bernanke on his last speech on this subject and others in their speeches about the Fed Debt only include extrinsic debt owed to outside parties or governments. This is about 1/2 of the debt used in these statistics. So instead of owing 86cents per dollar of GDP, the true figure is 43 cents and that puts us like New Zealand about 108 on the list. Rich