It is normal for countries to owe debt, but there is major reason for concern when looking at today’s debt situation. The numbers are outrageous. It’s hard to believe that the US debt is currently at trillion levels ($19.5)? This is just like the popular quote that even the rich also cry if US is to be compared to other countries of the world. And, for the debt to escalate when politicians are working towards its reduction, calls for attention.
This infographic by Visual Capitalist helps to break the calculation down to everyone’s level of understanding. So, in achieving this aim, the content used visual representations of plotted data from managed assets to annual production of gold among other yardsticks. The following gives these yardsticks used in measuring the level of the national debt of the US.
- The debt is larger than the 500 biggest companies (public) in the US
Some of these numbered companies used in measuring the height of the present US debt are Microsoft, Apple, Alphabet, Johnson & Johnson, Exxon Mobil, Facebook among others. The values of each of these companies were tracked using market capitalization. Put together, in the summer of 2016, their value added up to $19.1 (trillion) and this is still lower than the calculated debt.
- It is more than all managed assets by the top 7 money managers of the world
Some of these money managers include companies like Vanguard, J.P Morgan, UBS, Allianz, State Street Global Advisors, Blackrock and Fidelity that manage assets worth $3.37T, $1.68T, $2.71T, $1.98T, $2.30T, $4.74F and $2.11T respectively. In all, these companies have the sum of $18.9 (trillion) for the assets being managed by them; a sum far lower than the calculated debt.
- It is 25 times larger than globally exported oil in 2015
Countries like Russia, Kuwait and Saudi Arabia among others are globally known for exporting oil. And, for all their exports in 2015, the said US debt is far larger than the total sum generated. Saudi Arabia will continuously export oil for 145 years before attaining the level of the current US debt.
- It is 155 times larger than all globally and annually mined gold
The rough estimate of annual gold production worldwide is about 96 million oz. To cover the current sum of money being owed by the US, countries of the world will have to produce same quantity of gold for 155 years continuously.
- It is more than the combination of all global and physical gold, currency, bitcoins and silver
All currencies of the world (different countries put together), gold, bitcoins and silver are 5 trillion dollars, 7.7 trillion dollars, 11 billion dollars and 20 billion dollars respectively. These give a sum of 12.73 trillion dollars. This is just about 65 percent of the current national debt of the US.
The question now is what is the way forward; knowing its effect on our economy?
All details in this infographic