Sunday, September 28, 2008

Seven Hundred Billion Dollars

As our government signs a $700 billion bailout of our central banking system, I think it's time to understand exactly how much $700,000,000,000 actually is.

$700 billion is:

$2,325 for every single man, woman and child in the USA
$2,790 for every car registered in the USA
$13,335 for every second since September 29, 1908
$21,540 for every second that a 62 year old has lived
$167,704,839 for every family of a US confirmed death in Iraq (as of 9-28-08)

The NY Times has a nice image to help put this into perspective this too. The below video is called Money as Debt and is totally worth watching. This is what our banking system is, explained in lay persons terms. It's long, but totally worth watching so you understand why the government is doing this. We simply need debt to make our economy work.

It's a vicious cycle, we need debt so we have money and we need money to pay debt, the real question is: How long is this sustainable?