$2,693,388,634,974.37

[Cam]

No one in the news is talking about the real cost of the Bail Out. First we know that the government doesn't have the money and will have to borrow it.

$2,693,388,634,974.37 is what $700 Billion compounded annually for 30 years at 4.5% amounts to.

Over $2.5 Trillion Dollars and that is in a perfect world where the original cost of a government program doesn't go up. Which we know never happens.

That is 1/4 of the current advertised National Debt.

 

[torchbearer]

What is the price tag in yuan?

 

[voytechs]

In 30 years it will be 3000 yuan. Dollar will be worthless.

 

[torchbearer]

So we cancel out all our debt by destroying our currency?
Is that how they plan to pay off the debt? drive the dollar to zero?

 

[wizardwatson]

So we cancel out all our debt by destroying our currency?
Is that how they plan to pay off the debt? drive the dollar to zero?

DING!DING!DING!

We have a winner!

 

[Kludge]

So we cancel out all our debt by destroying our currency?
Is that how they plan to pay off the debt? drive the dollar to zero?

That was taught to our class in HS Economics as a valid way to reduce national debt.


We'll PROFIT if we export enough inflation to the point where the US has an overall negative net worth! Woohoo! Bring it on, Benny!

 

[torchbearer]

DING!DING!DING!

We have a winner!

I guess the joke is on the rest of the world for being our slaves for the past few decades, but don't count on us having any friends either.

 

[noxagol]

That seems really low.

 

[Cam]

That seems really low.

I believe treasuries are compounded biannually, but went the conservative route. If someone understands the 30 year treasuries better I would love to see an updated cost.

 

[nate895]

The way they get around saying that is because the Fed buys the treasuries, and the Fed gives all the interest back to the treasury, so it winds up only being 700 billion in the end.

 

[NinjaPirate]

I guess the joke is on the rest of the world for being our slaves for the past few decades, but don't count on us having any friends either.

Or one can look at it as repayment of the billions of dollars we gave to Europe post WWII.

 

[nate895]

Or one can look at it as repayment of the billions of dollars we gave to Europe post WWII.

Plus repayment for saving their asses, not once, but twice.