Interesting thread on Reddit about US debt

[Kman]

Just reading through the reddit comments responding to this article about US debt..

All of the world's physical currency, gold, silver, and bitcoin is worth $12.7 trillion. The size of the national debt is nearly $20 trillion

https://www.reddit.com/r/dataisbeautiful/comments/538g77/all_of_the_worlds_physical_currency_gold_silver/

The article

http://www.visualcapitalist.com/visualizing-size-u-s-national-debt/

You guys might find it interesting one way or another 

[Scuzzle]

The precious metals market is also tiny in comparison to all the money in stocks, bonds etc and there is still the slim hope that if central banks keep printing money and buying these up eventually they are going to run out of stuff to buy with it and investors are going to have to turn to PM's because everything else has been taken.

[ApisMellifera]

Nice. I really like the all visualisations of http://demonocracy.info

I mean not sure if I 'like' them but a picture says a thousand words... . or trillions...

http://demonocracy.info/infographics/usa/world_debt/world_debt.html

 

...and there is even a video animation

 

[KDave]

Nice thread on that link, some well put together ideas there thanks. I don't agree with the long post at the beginning though.

The argument that the US debt is insignificant because of the massive trillions of dollars of inherent value in the US is not entirely accurate; the post even makes the correct leap to say that in theory California could be sold off to pay off the Chinese debt, but does not ask why or how that might occur, just throws it out there and dismisses it as if it will never happen (we all know THAT will never happen over here...). Sadly this is exactly what is happening in Greece - national assets are being sold off to third parties as part of the renegotiation of the debt.

The size of the debt is important, but more important is the ability to repay. How much inherent value there is in a nation has nothing to do with it. That part only matters later when the interest and repayments of the huge debt you have run up is impossible to meet with the income your nation produces and you default. Then all the intangible value you place upon how nice the roads are in the US, or how many litres of water your reservoirs contain (or whatever else you place a subjective value on) is up for negotiation and suddenly you country is worth whatever a third party will pay for it so you can settle your debt with the debtor. Usually not as much as you thought - ask Greece. 

The analogy of a man with 50k in debt but a million dollar house - how much does the house produce? If your debtor demands 5k a day back until its paid off and you can only make 4k from your house, you default, in comes the IMF and sells your house on the market, which pays $100,000 because that is all the market can or is willing to pay.

But that will never happen in America - keep the debt piling up chaps its meaningless! 

[Kman]

1 hour ago, KDave said:

Nice thread on that link, some well put together ideas there thanks. I don't agree with the long post at the beginning though.

Great post KDave

Exactly as you say, reading the comments was annoying me, a lot were acting like the debt is a great thing and twisting it somehow that the more debt the country has the wealthier they are :s 

[a_a]

' Like others have said this total does not really make sense the S & P 500 by itself carries a valuation of around 18.5 trillion '

I thought this would take some beating, but didn't have to scroll too far to find this:

' Someone needs to link all the "go back to the gold standard!" retards to this thread. We left for a reason. Western society has gotten so damn wealthy there's not nearly enough gold to back the currency, let alone the total asset value. '

LOL

Not enough gold to back the currency. Makes perfect sense!

Then I had to stop reading it and have a lie down.