American total debt level (government, business, mortgage, consumer) has hit an unprecedented level of 60 Trillion dollars. Well, $59.4 Trillion to be exact. A number so staggering that is truly impossible to comprehend. Yet, let’s give it a try. Here is what you can buy for 60 Trillion….
- 15 Trillion Big Macs at McDonald’s
- 60 Million McMansions at $1 Million each.
- 240,000 Boeing’s 777
- Or you would have to spend about $2 Million per every single minute of your life if you are to live for 70 years.
It would only be appropriate if the stock market celebrates this amazing achievement with another stock market rally. On a more serious note, there is absolutely no way that the US Government or the US Citizens can repay this amount of debt. Given our current economic environment, it would have to be inflated away. That is precisely what my mathematical and timing work shows.
Even though there are signs of inflation, technically we are still in a deflationary environment. With more debt defaults and debt liquidation coming during the bear market of 2014-2017, deflation will continue to rule. Yet, come 2017 we should see ever increasing pressure on the inflationary front. Slow at first and accelerating into double digit inflation towards the 2030’s. That in itself will create a huge mess, but it’s too early to talk about that at this stage.
American Total Debt Level Reaches Unprecedented Benchmark Google