The national debt as of Nov. 23 was $9.1 trillion, up from $5.7 trillion in 2001. To put some perspective on one trillion, David Hunnicutt (blog) sheds some light on this.
If you counted to a trillion out loud, one number per second, you'd have to clear your calendar for the next 31,688 years just to complete the task.
Now, let's put a trillion in financial terms.
Let's say it's the year 1, the beginning of the first millennium. You have a trillion dollars to spend-at the rate of one million dollars a day. At just before three years, you've reached a billion dollars. So you keep spending. Now you are in the year 2,000. Would you believe you'd still have 737 years to go before you exhaust your trillion dollar pile.
The moral of the story is a trillion is a gigantic, unfathomable number, and we collectively have over 9 of them staring us in the face. According to a Dallas Morning News article by Jim Landers, this debt has been flamed by both parties over the years as foreign countries have been increasingly willing to lend money. Landers says the biggest lender, China, holds more than $1.2 trillion in U.S. assets as reserves and if they were to move from the dollar to euros the value of the U.S. dollar would be severely weakened and most likely force the Federal Reserve to raise interest rates to continue attracting the $4 billion a day in borrowing we get from abroad. The problem is that foreign investments have now surpassed our gross domestic product, which should be a red flag for Americans.
With national debt being such a seemingly insurmountable number, its easy to look to politicians for mismanagement of funds, but I'd be remiss to not look back to the constituents that these politicians serve. Our nation is operating on another credit bubble that will only grow exponentially this Christmas.
Reuters reported today that U.S. online shoppers set a record on "Cyber Monday".
Online shoppers spent $733 million on Monday which was 21% up from last
year according to comScore. With some reports claiming that the
average American has over $9,000 in credit card debt, it's scary to
think about the number of people that will be paying for this
Christmas' presents for the next year or two.
As you're starting to think about getting gifts this year, review these tips from Salve Duplito to avoid the post-Christmas debt hangover and take another step towards eliminating unnecessary debt.
- Set a budget
- Make a gift list. Create three lists: family, friends and work contacts. See which ones you would like to give a gift to, and which ones can benefit from a simple yet sincere Christmas card.
- Consider giving group gifts
- Go homemade. Give gifts a personal touch by making them yourself.
- Try shopping online.
- Buy supplies in bulk. Gift wrapping paper, tape, ribbons, boxes and gift cards should be bought in bulk to save money.
- Choose affordable party venues
- Look out for sales
- Pay your bills on time.
- Keep it simple. You don't have to overspend to impress.
Overall, remember that most likely whatever you buy this year will be in a trash can in less than 10 years so focus on the reason why you want to give and not how much money you can spend on the gift. - John Herrington
Photo courtesy of k9ine.