The next time you turn on your television and hear democrats, republicans, liberal democrats, tories, whigs et all discuss any form of National Debt spare a thought for the American middle classes who are staring at bankruptcy. Many people have stated publicly that future generations will pay for this debt. In simple terms they cannot. The maths are unworkable. There is no solution. How exactly does one pay off a meaningful amount of this debt? Let’s now look at the back of the fag packet and scratch a pencil mark here;-
$16,000,000, 000,000 (16 Trillion or sixteen thousand thousand million) divided by the working population of USA of circa 154,400,000 = $103,626.94 per each working person in USA.
According to Wikipedia the Per Capita wealth of each US citizen presumably working is US$48,450 each.
There are 30 million smaller businesses with around 91% working in the Private Sector. This contrasts dramatically with that of Europe and UK where the Public Sector is becoming the ever more dominant employer.
If hypothetically each working citizen could put their hands on say $50,000 of hard cash (debt) and gave it to the Federal Reserve then presumably 50% of the debt could be cancelled, but it begs the question, what does the citizen get in return?
That still leaves around $8 trillion which is still unworkable. No fag packet calculation is even being considered for interest and inflation and no social assumption is being made for government total ownership of property which is plainly preposterous.
So what is the solution? Well, it’s clear that the US cannot grow its way out of this hole. It cannot sell anything as there would be no buyers. It cannot tax its way out of this hole as there would be virtual 100% unemployment (versus 10-20% today depending on who one believes). Somebody or some corporation has to pay and this is the dilemma.
There are $100’s of billions of $’s held on deposit at US businesses in an already arguably bust banking system. In fact the banking system arguably is a slave to the ‘new corporatocracy’ that has been created (Apple is just the tip of the cash rich iceberg).
Assuming that there’s no great technological evolution or invention around the corner then it’s fair to assume that the TMT sector could be nationalised Soviet style (that would cancel somewhere under $3 trillion of debt). In fact the corporatocracy is effectively the state anyway so let’s throw BP (now mostly owned by US institutions), Chevron and the entire oil and gas industry into the mix.
Hell, let’s all work for the government. Free enterprise has pretty well been extinguished already. I see that the Fleet Street Letter is now predicting total financial collapse with UK leading the charge.
Anarchy in UK then.