Our Perpetual Debt Machine

As noted in a previous posting on this blog, China appears to be losing its appetite for our debt. It is reducing its holdings of U.S. IOUs that if repaid at all will be repaid with greatly depreciated dollars. 


It is questionable whether and to what extent the U.S. will be able to sell new debt securities to the Chinese . . . but worry not, there is a ready, willing, and able buyer for them: the Federal Reserve.


And in fact, as is reported here, the money printing (and destroying) Fed already has replaced China as the largest single holder of U.S. indebtedness.


What were that old song's lyrics? Oh yes: 

I OWE MY SOUL TO THE COMPANY STORE

A very astute professional investor who has experienced notable success over many years has responded to the linked article with the following comment:

Disgraceful monetary and fiscal policy.

 

If I understand correctly our debt and unfunded liabilities exceed $60 Trillion.

There are about 300 Million people in the US.

60 T divided by 300M = $200,000 per individual.

There are about 100M households in the US which is about $600,000 per family.

I read somewhere recently that the average family savings are about $7,000.

 

I have a little trouble imagining what  60 trillion of anything looks like, especially dollars.