The difference between “deficit” and “debt”

• The CURRENT DEBT

• 12 TRILLION

• INTEREST on the DEBT

• 370 BILLION

Interesting

• In 2009 the DEFICIT is bigger than the NATIONAL DEBT was in 1983

• (I was a junior in high school and The Breakfast Club was in movie theatres)

Some Perspective

• A million seconds is 12 days.

• A billion seconds is 31 years.

• A trillion seconds is 31,688 years.

• A million minutes ago was – 1 year, 329 days, 10 hours and 40 minutes ago.

• A billion minutes ago was just after the time of Christ.

• A million hours ago was in 1885.

• A billion hours ago man had not yet walked on earth.

Wait for it….

• Trillion = 1,000,000,000,000.• The country has not existed for a trillion

seconds.• Western civilization has not been around a

trillion seconds.• One trillion seconds ago – 31,688 years –

Neanderthals stalked the plains of Europe.

Not Done Yet…

• One trillion dollars today would allow you buy Coca Cola, Apple, IBM, Bank of America, Ford, General Motors, Toyota, Motorola, AT&T, as well as Exxon Mobil and STILL have enough left over to live comfortably on just the interest from the billions left over– not to mention the profits these companies generate.

Not quite finished….

• One trillion dollar bills laid end-to-end would stretch from the earth to the sun … and back … with a lot of miles to spare.

• CHECK OUT THE VIDEO

So how about the deficit?

• In November ALONE we added • 120 billion dollars to the deficit.

• The projected deficit for this year is • 1.5 TRILLION dollars• Up from last year’s 1.42 Trillion Dollar Deficit. • (really - you could spend a million dollars a

day since Jesus walked the planet and STILL not reach a trillion?)

WHAT THE…????

• Last year we had a 700 Billion Dollar bailout and a 780 Billion Dollar economic stimulus package.

• It adds up.

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Revenues

• Total Revenue: 2.1 Trillion

• Income Tax 48%

• Payroll Tax 33%

• Corporate 10%

• Excise/Tariffs 9%

• What happens in a recession?

How much is the yearly budget?

• 3.6 Trillion.

• It has DOUBLED in the last 10 years.

Is it all relative?

• 14.9% of GDP: Deficit

• 24% of GDP: Debt

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China: 789 billion

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