During the 30 years, the owner of the home might refinance the house, take out a second mortgage, or home equity loan, thus extending the debt. When analyzed in terms of personal equity, most of these people are technically in debt, as their assets don’t exceed their debt, especially when they first purchase a home. Many people purchase a house on 30-year mortgage. The debt will still have to eventually be paid off, right? Maybe, maybe not. government to borrow money to fight the recession during the current pandemic. Despite the debt, it has been relatively easy for the U.S. Secondly, interest rates are very low, so the federal government can borrow money cheaply. government is still being lent money? First, the dollar is still the preferred currency to store wealth in the world. Private financial institutions, the Federal Reserve, private investors, pension/mutual funds, and state and local governments hold the rest.Īnd with such high debt levels, why is the U.S. Of the publicly-held debt, foreign governments hold only about a third. The government agency which holds the most interagency debt with $2.93 trillion is the Social Security Trust Fund and Federal Disability Insurance Trust Fund. More than three-fourths of the debt is held by the public, the rest is debt that is owed by federal government agencies to each other. debt, thus making our country susceptible to manipulation by foreign powers. It certainly isn’t pretty, but it might not be as bad as it looks at face value.įirst, let’s dispel the notion many people have that countries such as China and Japan hold most of the U.S. GDP in 2019 was $21.4 trillion, which is expected to shrink in 2020. debt is predicted to exceed the nation’s Gross Domestic Product by the end of 2020. Not surprisingly, for the first time in history, U.S. Trillions of dollars already have been allocated as stimulus monies to shepherd the U.S. I am fixated so much on the concept of a trillion dollars because during the current pandemic and economic meltdown, the word “trillion” is bandied about lightly and effortlessly, almost as if in passing.
If you did the same thing with a trillion dollars, it would take you 792.5 years to go broke. Finally, how long would it take to spend each amount? If you spent $40 per second, around the clock, it would take you 289 days to exhaust a billion dollars.
A trillion dollars laid out the same way would cover approximately 3,992 miles, or 1,000 square miles larger than the states of Rhode Island and Delaware combined. If you laid one billion dollars side by side like tile, they would cover about four square miles. A trillion dollars laid in the same manner would stretch for 96,906,656 miles, a distance farther than the sun. If you stacked a trillion dollar bills in the same manner, the column would reach 67,866 miles or comfortably into space.Ī billion dollar bills laid end to end would stretch 96,900 miles, winding around the Earth nearly four times. If you stacked a billion dollar bills on top of each other, the stack would reach 67.9 miles. 0043 inches thick, we can come up with some astonishing statistics. dollar bill is 6.14 inches long, 2.61 inches wide, and. During the pandemic, I have been pondering the concept of a billion and a trillion dollars, which is comprised of a thousand billions. I don’t know when the last time you traveled from the earth to the sun, much less traveled at the speed of sound in a jet, but for me those comparisons are just as mind-boggling as the concept of a trillion of something.Commentary: All my life, I have liked curious facts.
It would take a military jet flying at the speed of sound, reeling out a roll of dollar bills behind it, 14 years before it reeled out one trillion dollar bills. One trillion dollars would stretch nearly from the earth to the sun. OK, so what does a trillion look like? The problem with most answers to questions like this is that they try to it into perspective by relating it to things normal people have no perspective for. Just for a refresher on how you get to a Trillion and beyond, recall from grade school the implications of adding three zeros after a “one”.1 = One We hear these HUGE numbers thrown out in daily conversations (yes, I have daily conversations about the age of the universe and so should you…) but does anyone really have a grip on what a BILLION or a TRILLION of anything really looks like? The United States national debt is currently just over 19 trillion dollars. The age of the universe is estimated to be 13.7 billion years.
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