US Debt

Just watched this movie... I.O.U.S.A

Mind boggling.... US Debt is sky-rocketing...
And the real shortfall in meeting the US government obligations is even worse.....
Watch the movie or read more here to understand what this really means.... And here for the simple good old wiki on the topic...




But just to give you a sense of the problem.... Indian GDP was only about $1.2 trillion in 2008... In other words, US debt of $12 trillion today is 10 times as much as the entire Indian GDP (GDP, in rough terms, is the value of all the goods and services produced in the country) !!

BTW, you think you know trillion?
One million seconds will pass in the next 12 days.
One billion seconds will take 32 years.
One trillion seconds will pass in 31,688 years.
Time is money, right? If you make one dollar every second, you will have a million dollars in twelve days. You will be a billionaire in 32 years, but it will take you more than 31,000 years to make a trillion dollars.

How is it changing the game for the US?

In 2006, Professor Laurence Kotlikoff argued the United States must eventually choose between "bankruptcy", raising taxes, or cutting payouts. Thomas Friedman has argued that increasing dependence on foreign sources of funding will render the U.S. less able to act independently....

Well... you have seen how China is already gaining power in the world arena... need more to say?