Tuesday, May 25, 2010

13,000,000,000,000

Congratulations to the USA which passed the $13 trillion mark on the Federal budget deficit this afternoon with their $42 billion auction of treasury bonds.

At the current rate of issuance (assuming the economy does not get worse and tax receipts fall), our USA will pass $14 trillion in 7 months.

$15 trillion will then be breached 8 months later.

Fortunately we already know what happens when a country has runaway deficits financed with a printing press.  The images of people in Germany burning their money to stay warm is but a recent memory:


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