Wednesday, September 29, 2010

A trillion here, a trillion there, pretty soon etc, etc

Some people still have trouble getting their hands around the meaning of a trillion. That is why I want to share this handy example :
If my friend Ben would distribute all that cash that he is creating amongst all of the 300 million residents of the USA evenly, everyone (men, women, child) would receive about $12,300 Dollars.
This number is arrived at by adding the amount he has made up last year (1.7 trillion) and adding the 2 trillion that he has hinted he wants to create next year. Total : 3.7 trillion Dollars.
Dividing that by 300 million actually yields 12,333 Dollars and 33 Cents. A family of 4 therefore would receive $49,333 Dollars.
May I ask you how much cash you have lying around ? Would you think that such an infusion of cash might change your balance sheet ? (or your investing and spending ?)

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