Monday, May 18, 2009

US Government Spending Consumes World GDP

The final bill for the Global War on Savers will be vastly larger than the final bill for the Global War on Terror.

Peak Nominal GDP
Ballpark figures rounded to nearest Trillion (T) to ease understanding

(updated figures)

World’s 10 Biggest Economies
$17T = EU
$14T = US
$4T = Japan
$3T = China
$1T each(descending) = Canada, Brazil, Russia, India, Mexico, S. Korea

$55T = World
$20T = World except top 3 (EU, US, Japan)
$11T = World except top 10

First, think of all the Chinese things you buy, the jokes that “everything” bought in America is made in China, and think of the total labor of 1.3 BILLION people in China:

US 2009 federal budget ($3T) = GDP of China

The problem with consuming China is that half an hour later Nancy Pelosi is hungry again.

US 2009 federal deficit ($2T) = GDP of India and Mexico combined (or GDP of wealthy Italy, a G7 country)

The $2T deficit is not the US federal government total spending, that $2T is only the EXTRA spending beyond the federal government’s income (overdrawn your account), as in:

“Oops, silly us, we accidentally spent an extra Italy."

That is a deficit nearly equal to every single item produced by Italy, down to the last ravioli.

Remember, an Italy here, an Italy there, and pretty soon you are talking real money.

US 2008 government spending (federal/state/local) ($5T) = GDP of China, India, and half of Russia combined (about 2 ½ billion people) (or GDP of wealthy Japan and S. Korea combined)

US governments spent 5 TRILLION dollars of your money in 1 year alone (more than the total annual output/income of 2 ½ BILLION people) yet moan that they didn’t have enough money to fill potholes or fix leaky school roofs. They accidentally must have misplaced the $5T, or spent the $5T on something else--they can’t quite remember--so this year they helped themselves to another $5T--plus a 6th trillion of your money--just, you know, because.

US 2009 government spending (federal/state/local) ($6T) = GDP of China, India, Russia, and a quarter of Brazil combined (or GDP of wealthy Japan, S. Korea, and half of Canada combined)

US debt today ($11T) = the entire world’s GDP except the top 10 economies (counting the EU as 1 economy), greater than the entire annual production of several continents including all of South America, Africa, and Australia combined.

Obama plans to almost DOUBLE that debt to $20T.

US debt after Obama’s plan ($20T) = the entire world’s GDP except the top 3 economies.

Remember to include US unfunded liabilities that you owe (Social Security, Medicare, etc.):

US Unfunded liabilities ($50T-$70T) = the entire GDP of PLANET EARTH

Obama Fiddles while Rome Burns:

The U.S. Government's unsustainable debt-spending overconsumption and consumer-debt overconsumption policies will cripple not only the US economy but also the world economy.

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