Today, mypaper’s front page headlines read “S$18,316,267,123,556”. Curious, I went to read the article. It stated that the US debt is the highest ever in its history and the debt is almost 90% of GDP. And my friend beside me popped this question to me, which was something along the lines of, “Wah, does the government really physically own this amount of money?”. The answer I gave was that it actually does not. Why? Look at the following video to understand:
Also, all the money US government owes cannot and must not be paid back. If it does (if that is ever possible), then money would cease to exist. Why? Take a look at the next video:
A detailed version of the first video and it also explains what inflation is:
Kinda creepy isn’t it?
If you are really interested and can invest more time to really understand the whole money game, I recommend that you go to http://www.chrismartenson.com/crashcourse and take a look at all the videos in that page from chapter 1 to 20. It will be really mind-blowing!