...isn't the above an argument for massive deflation?

verfasst von CRASH_GURU, 28.04.2004, 07:32

-->Why the above is so can be gleaned by looking at a few figures. Total US debt (private + public) is presently about US$32 trillion, but the total supply of US dollars is only about $9 trillion. This means that if every US dollar in existence was put towards the repayment of debt the average creditor would only receive about 28c on the dollar. Also, if we assume an average interest rate of 6% on the $32T of debt then the annual interest bill is about US$1,900 billion. However, the increase in the total US money supply over the past 12 months was 'only' $420 billion. In a nutshell: there is nowhere near enough money in existence to pay-off the current debt and there is nowhere near enough new money created each year to even pay the interest on the debt.

But isn't the above an argument for massive deflation?

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gesamter Thread:

• ...isn't the above an argument for massive deflation? - CRASH_GURU, 28.04.2004, 07:32
  • Re:...isn't the above an argument for massive deflation? - Popeye, 28.04.2004, 08:25
    • Re:...isn't the above an argument for massive deflation? - CRASH_GURU, 28.04.2004, 09:04
      • Wer ist denn der Autor? (o.Text) - Silberblick, 28.04.2004, 10:27