inflation, debt, and general madness
the journal of Michael Werneburg
twenty-seven years and one million words
This morning during a conversation with my mother I explained my upcoming quest for investors in our business. It led to some surprises.
I happened to mention our projected "average purchase" for our first year: some ¥170,000. That comes out to about $CA2,000. She remarked that the wedding rings she bought in 1970 cost $15 each.
$30 for two solid gold wedding bands. Knowing what a gold band costs today, I can assure you that gold has appreciated in a value. Just a bit, mind. To the tune of about 60x. Which means that compared to gold, today's money is worth about 1/60th of what it was forty years ago.
Which is damn depressing. But for kicks I started looking into the health of the global economy and since of course all roads lead to Rome that meant the US economy. I eventually learned that the clear facts are all to be had at US Debt Clock. The figures are staggering. Here are some samples:
Personal debt per citizen: $53,326
Average savings per citizen: $1,104
I can't think of any commentary that wouldn't leap to mind of anyone who can read. But here are two more fascinating numbers.
Total US assets per citizen: $236,200
Total US debt per citizen: $353,000
It would seem that there's $1.50 in debt for every $1 of assets in the US. Rather breathtaking. Paralyzing, also.
The site rounds out its US-centric figures with some wonderful news from the rest of the world. The UK's external debt is well above 400% of GDP, for instance. And Japan's public debt has climbed above 200% of GDP.
Is it time to move to the developing world?