Punchinello’s Chronicles

November 24, 2008

Bailout Money as of November 2008

Filed under: Butterfly Wings — Punchinello @ 5:05 pm
Tags: , ,

Anybody keeping tabs on how much money “we’re” spending, as a nation? That means you and me, people who pay taxes and those who pay only sales tax. We keep hearing numbers every few days, $20-billion here, $25-billion there, and as J.P. Moran once said, “A billion here, a billion there…pretty soon you’re talkin’ about some real money!”

It turns out that CNBC has been actually tracking all the money going out the door. It’s at $4.28-trillion dollars, so far.

Before we get into that, though, we need to know how much money is in the national budget. What’s the total money we have, that might possibly be spent? Granted “have” is a flim-flam word, since the US Treasury is free to print whatever amount of paper money they feel like printing. But let’s say the government were like you and me, where we only could spend what we earn.

All told, the Federal government brought in $2.57-trillion for 2007. That’s an awful lot of money, and includes all tax revenues. $2,568,000,000,000. That’s two million, million dollars, which means you could instantly make 2-million people into millionaires. There are about 305-million living human beings in the country, thereabouts, but that includes children.

Let’s suppose there are 200-million adults. Not all of them are working, but in 2005, the government numbers showed 155-million people were earning wages. Take everything we sell, make, produce, and so forth, and our annual “revenues” claim to be $14.3-trillion dollars as a total “gross domestic product” (GDP). That’s BEFORE labor costs, making things, expenses, and so forth.

That’s what we “claim” to be worth. That’s our total worth as a country. That includes projected profits on real estate we have and might sell. It includes numbers we “believe” things may be worth, according to the past. It’s like saying that we have X number of houses in the country, and based on 2007 prices, they’re “worth” Y number of dollars.

If you take a trillion $1 bills, laying them end to end, they would go from the Earth to the Moon and back again, 200 times. The Sun is 93-million miles away, so a trillion dollars would be almost a million dollars per mile. A trillion pennies (about $10-billion), stacked on top of each other would be 986,426 miles high. If you total up 1-trillion seconds, you end up with 31,688 years! That was the time of the Neanderthals and the Ice Age!

We could spend $1 per SECOND, and it would take us 31.7 THOUSAND YEARS to spend only ONE trillion dollars! Can you imagine?

Back to the CNBC story. Just this year’s “bailout” money, money that the government (you and me) is so cavalierly handing out to anyone who wants some, comes to $4.28-trillion (and counting). That’s two times the TOTAL amount of money brought in by the entire government. ALL of that, not including any salaries, military, infrastructure…nothing!…was only half of what we gave away.

So what? Put it on our tab, we say. We’re spending more than we earn, and as of last April, we would have needed $9.4 trillion just to get caught up. Now, with the new bailout money and plans, that would be closer to $11-trillion un-be-frickin’-lievable DOLLARS! We now could spend $11 per SECOND for 31,700 YEARS!

If the country went to bankruptcy court today, all 300-million of us, you know how much YOU would owe, personally, of that debt? $37,300! That’s what you owe (me too) when you wake up each morning.

Now you tell me: Where the hell is this money coming from?

Mr. Obama and Spanky’s Gang announced today that they damn-for-sure-well want another $700-BILLION for another “stimulus” package to “ensure” the economy gets back on track. That’s like someone coming knocking on your door asking you to make a donation of $100,000 to charity, this Christmas.

Not only is that number ridiculously impossible, based on your salary, investments, and so forth, it’s insanely impossible! Suppose your children were kidnapped and the thugs demanded $100,000 in ransom? Would you even be able to come up with that money? What if your house is in foreclosure, you’ve maxed out all your credit cards, you have no 401K, no investments, no real estate, no assets…nothing!?

And yet people figure this is just a glitch. Nobody’s yet had to pay the piper for half a century of debt financing and deficit economics, so why now? It’ll never happen. Just like the great earthquake of California, predicted for years: It hasn’t happened yet, therefore…it won’t happen ever.

Hm…on the other hand, if the American dollar crashes and goes to almost no value, what next? Would that make it easier to sell to the public a “new idea,” along the lines of the North American Union? Would we see an “Amero,” backed by silver, and held up as The Solution to our problems?

I dunno. I’m not a big conspiracy buff, so I’m not all that into one-world-government plots and things. But given the numbers, I see no possible way for the US to continue as it has. And since the rest of the world has tied their economic well-being to ours, what happens next? Nobody knows. It’s a mystery!

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2 Comments »

  1. I seem to be spamming your posts with a lot of comments, but once again – many thanks for the mystery ;). My humble guess as to what will happen? Inflation. That is probably the only way that this debt can ever be payed. I found some statistics from the Fed – posted it just now. Apparently, the “monetary base” has as of november been increased a whopping 35% compared to november last year. I am hoping someone who knows economics can tell me how this money will NOT end up creating inflation. Back here in europe we are a few steps behind, but the money tap will start pouring pretty soon here as well I guess.

    One has to wonder – what is seriously wrong with these people? Are they blind? Or is there some mysterical way that this will all turn out alright (like the US GDP mysteriously going up 35% or so to pay off this debt)? Yet there are strange mysteries out there – in Japan the federal interest rate is 0.3% – and they are still expecting deflation. Basically they cannot make people spend the money they need to keep this kind of fake economy going.

    I guess its going to be an interesting 10-20 years ahead.

    Thanks for providing healthy information, there seems to be a weird lack of sane thought these days …

    // hpx

    Comment by hpx83 — November 30, 2008 @ 11:41 am | Reply

  2. Legitimate comments aren’t “spam.” Comments are moderated, and spam is deleted. Seems to me a blog is somewhat like a forum, excepting the entries are longer and the topical discussion doesn’t go on for as long. I guess it depends on the blog owner. THIS blog has and allows comments that further the discussion. 🙂

    As for how this will all continue, it won’t. Any economist who actually understands reality also has already come out and stated that increasing the money supply without a basis will simply lead to runaway inflation. But that isn’t stopping Congress from printing valueless money at all.

    One possible explanation for this is the conspiracy theory describing a bid for a one-world government. It’s been a bit far-fetched previously, but with the seemingly insane actions being taken now by the US federal government, it’s getting harder to completely debunk these conspiracy scenarios. In this instance, we probably will have to “wait and see.” Sad as that is.

    Comment by Punchinello — November 30, 2008 @ 1:42 pm | Reply


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