US: 100 trillion dollars of debt. Where did it go? By James McShirley.
I have referenced $100 trillion as an ultimate amount that will be needed to keep the economy, and social order from disintegrating into hell. … The Fed has gone all-in, and there’s no turning back. …
This is a back of the envelope estimate of where QE [quantitative easing, the official euphemism for printing since the GFC] paper-the-earth could wind up:
Banking/derivatives/Wall Street: $60T
Airlines, automobile: $1T
Small business: $1T
Other various industries: $2T
Add’l unemployment funding.: $1T
State, municipal bailouts: $2T
Pension fund bailouts: $3T
Tax revenue losses: $2T
Add’l interest on debt: $1T
Add’l medical, Medicaid: $1T
Add’l SNAP, supplemental: $1T
Already spent during crisis: $5T(?)
Current deficit: $18T__
$100T is around $300,000 per person in the U.S. That’s $30,000 per person each and every year to 2030 even if you spread it over 10 years. More accurately it’s closer to double those amounts per taxpayer.
As shown these projections assume the banks and Wall Street will be the recipients of the lion’s share. Wall Street has already soaked up $13.54T since Sep. 17, 2019 (per Pam and Russ Martens) so if anything projecting a $60T allocation to them might be conservative.
The money is created out of thin air and lent out, but has to be paid back. It obviously never will. Still, a debt is always repaid — whether by the borrower or the lender.
We also don’t know whether, like in 2008, there will be surreptitious bailouts to foreign banks/Sovereigns largely concealed from the public records.
For example, it later became official that NAB and Westpac received $1b and $3b from the US Fed in the GFC. Australian Treasurer Wayne Swan never mentioned that when boasting that Australia had the best banking system and we/he had weathered the storm.