We had better learn quickly with the economy tanking.
The supply of newly-minted dollars bills has doubled since George W. Bush took his first oath of office. The world’s known supply of crude oil has decreased by about 13% over the same timeframe. These two data points are part of a new macroeconomic equation that equals soaring oil prices.
Before the human race began sinking oil wells into the ground 150 years ago, the planet’s total geological inheritance of crude oil totaled about 2 trillion barrels. But mankind has already burned up about one trillion of those barrels. So we’ve only got one trillion left. By contrast, during those same 150 years, America’s total government liabilities exploded from $75 million to $54.6 trillion.
As the planet’s supply of oil slips below one trillion barrels, and America’s pile of liabilities soars above 54 trillion dollars, crazy things might start to happen – crazy things like $200 per barrel oil.
Net of all accounting gimmicks, the actual federal budget deficit is running at an unsustainable, system-dooming pace.
The consolidated statements show that the actual annual federal deficit for the fiscal year ended September 30, 2006 was $4.6 trillion, up from $3.5 trillion in 2005. Total federal obligations at year-end were $54.6 trillion, up from $50.0 trillion in 2005.
By the time poor Obama takes office I am sure we will be looking at a number I used as a child KAZILLION!