What is a trillion dollars?

A trillion dollars is what the USA will be in deficit spending for the next several years and maybe a decade.  Can you visualize a trillion dollars?  As an engineer I deal with numbers that are very large and very small.  I really have trouble understanding what a trillion $ really means.  Here are some examples:

A trillion dollars = $1,000,000,000,000.

That’s 12 zeroes to the left of the decimal point. A trillion is a million million dollars.

The U.S. government spends more than the entire Gross Domestic Product (GDP) of Australia, China and Spain combined. If you laid one dollar bills end to end, you could make a chain that stretches from earth to the moon and back again 200 times before you ran out of dollar bills!

One trillion dollars would stretch nearly from the earth to the sun. It would take a military jet flying at the speed of sound, reeling out a roll of dollar bills behind it, 14 years before it reeled out one trillion dollar bills.

American workers now net almost 30 percent less in real wages than they did in 1973. After taxes, two paychecks in a family barely equal the relative purchasing power one had thirty years ago.

How will the government pay for this deficit spending?  They will have to print money.  What happens to money that is printed and not supported by real productivity or physical goods?  It dilutes the existing money that is in circulation.  This means that it will take more money to purchase the substantial items that really do exist at that time:  Another word for this is called Inflation.

Now what happens when an economic situation in which inflation and economic stagnation occur simultaneously and remain unchecked for a period of time?  It is a term called Stagflation.  This type of stagflation presents a policy dilemma because most actions to assist with fighting inflation worsen economic stagnation and vice versa. Second, both stagnation and inflation can result from inappropriate macroeconomic policies.   People, it is a very thin and light weight tight rope we are walking so prepare for the worst and start stocking up food and seed stock for gardening.  You will probably need them to weather this storm that is upon us.

Japan Auto Industry

TOKYO (AP) – Japan’s production of cars, trucks and buses marked its steepest drop in at least four decades in November, an industry group said Thursday, as the fallout from the U.S. slowdown crimped auto demand.

Vehicle production in Japan, home to Toyota Motor Corp. and other major automakers, plunged 20.4 percent in November compared to the same month a year ago to 854,171 vehicles, the Japan Automobile Manufacturers Association said.

The full article here

LA Times article

I am coming to believe that we should ban Chinese products that relate to health, medicine and the environment.  They are trying to slowly kill us and you cannot believe a word they say since the government is not grounded in Biblical principals.  Write to you congressmen today.

China is the world’s largest producer of farm-raised seafood, exporting billions of dollars worth of shrimp, catfish, tilapia, salmon and other fish. The U.S. imported about $2 billion of seafood products from China in 2007, almost double the volume of four years earlier, according to the U.S. Department of Agriculture.
But industry experts and businesspeople in China say that melamine has been routinely added to fish and animal feed to artificially boost protein readings. Melamine, commonly used in plastics and dishware, can lead to urinary problems such as kidney stones and even renal failure.

http://www.change.gov/page/s/economy

My thoughts. 

 Jobs:  If GM is allowed to go under , pulling Ford and of course Chrysler, the Indiana, Michigan and Ohio should be declared disaster areas.  The President-elect’s 2.5 million jobs will all come from this one arena.  Think deflation as the loss of this many jobs will devastate the whole USA with the Great Lake area as the spear point.  Please legislate a bridge loan to protect these icons of the United States of America.

National Health Plan:  Everyone talks about the bad aspects but I think a NHP can succeed and be viable.  Move the autoworkers from GM to the NHP to make the automotive industry more competitive.  Move Medicare and Medicade in also.  Sure it will mean higher taxes in the long run but it will be worth the peace of mind knowing that a run of bad luck will not wipe a person out of a life savings.  I would rather pay a little at a time over a lifetime than have it all go at once:  Think of it as a Saving Plan.

Saving:  Reward people saving money for old age via a 401K or 401K like saving plan that is tax free.  I was in the start of the 401K era.  I saved every year since then and have a reasonable nest egg.  Terminate the 70.5 years age forced drawout.  Why force it since people are living longer and may need the money when they are real old.

Israel:  Support

NAFTA:  Support, with some changes, Mexico and Latin America.  They are our best trading partners.  We will need them to help stoke the fire and bring the USA back to burning.  Canada.  same.

May God bless your Presidency!

httpv://www.youtube.com/watch?v=m17pz0R_qZo