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Re: The definitive U.S. Dollar Rally Thread

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  • Thu, May 13, 2010 - 09:44pm

    #62
    Peak Prosperity Admin

    Peak Prosperity Admin

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    Re: The definitive U.S. Dollar Rally Thread

Hello Rickets:

Not to beat this thing to death but I don’t agree with the 55 trillion. Back of the envelope here:

  • 55 tn in household assets
  • Less 14 tn mortgage debt
  • Less 2.5 tn in consumer debt
  • Almost 1 tn in credit card debt

Someone has to pay this:

  • 13 tn national debt
  • 18 tn if you (and I sure do) count the Fed’s GSE debt (Fannie & Freddie)
  • 24 tn in money tossed at or promised to the financial institutions
  • State and local budget and pension shortfalls 3.5 tn
  • 3 tn in underfunded private pensions

Also, CRE and RE are going to lose 5 tn and 1.5 tn this year.

So, even if you wiped away Social Security, Medicare & Medicaid  you’d have 37.5  against 61.5 worth of debt.