With the Obama Administration on a spending spree like no other president before, coming up with a $3.6 trillion budget for 2010, you would think the American public, among all the politicians, would be outraged at the potential effects that will result. But then again, many Americans are only being able to comprehend how much a thousand is, and some may even understand a million or even a billion. How are they supposed to comprehend a trillion?
A recent poll showed that when asked how many millions are in a trillion, only 21% of Americans got the answer correct. That is less than 1 out of every four. In fact, that is almost as bad as 1 out of every 5!!! Is it really any wonder why Americans have no clue where Obama is taken the US financially? Any wonder why inflation, even hyper-inflation, is not on the tips of everyoneâ€™s tongues? Are you one of those people out there that do not know the correct answer to the survey question?
Well, in case you are wondering what the answer is, there are one million millions in a trillion. Getting a better idea of just how much a trillion is?
Here is one analogy that may help you, and may even blow your mind. If we equate a dollar to one second in time, how much time is one trillion dollars? Any guesses? Did you know before you saw my tweet and FB update? Be honest now.
Letâ€™s break it downâ€¦
$1 = 1 second
$1,000 = 16 minutes, 40 seconds
$1,000,000 = 11 days, 13 hours, 46 minutes, 40 seconds
$1,000,000,000 = 31 years, 251 days, 7 hours, 46 minutes, 40 seconds
You now know how much a billion dollars is worth at a dollar per second. Any guess as to a trillion now? Well, here is the answerâ€¦
316 centuries, 88 years, 32 days, 1 hour, 46 minutes, 40 seconds!!!
Think you can live that long? And that is factoring in Leap Years folks. Now, letâ€™s look at Obamaâ€™s wonderful budget, focusing only on the projected deficit. Peter Orszag, the Budget Director, said this yearâ€™s deficit will be $1.841 trillion, or just over 583 centuries. Factor in that the Obama budget is based on the economy growing 3.5% this year, a good number even in good times, and you may as well add a few hundred more centuries to that figure.
Now, I am not even going to calculate the Gross National Debt, which is over $11.3 trillion dollars right now, but you can see that Obama is certainly not going to help things with all of his spending. In fact, the US could easily go bankrupt at the rate we are going. But wait, we have the Federal Reserve and Treasury Department, which are already running the printing presses, so why not just create more money and we can solve our problems that way. Yeah, thatâ€™s the ticket. That is the way the government will likely develop the necessary money, creating it out of thin air, which the end result is none other than inflation. As far behind as we are getting and with the dramatically increased government spending, hyper-inflation is ultimately going to have to occur, that is unless somehow, these trillions can be vacuumed up as easily as they have been created, and I wouldnâ€™t bet on that.
Now, what will mortgage rates do? Well, they hate inflation, so they will climb, most likely into double digits, maybe high teens, maybe even higher, setting new records. What can you do to survive financially? The answers to that vary and your answer may be different than the personâ€™s living next to you, so I am not even going to go down that path, but you had better be prepared, just in case this all really does happen.