- Federal US debt stands at just over $15 trillion which carries with it an annual interest rate bill of around $420 billion
- Consumer debt is estimated at just under $12 trillion, of which around $2.5 trillion is unsecured (or nearly $8,000 per person)
- State and municipal debt is really not an issue in overall terms, with the total number standing at less than $0.5 trillion
- Overall assets including stocks, money-market holdings, savings and real estate are valued at $67 trillion, down slightly over the last three years.
Overall US debt stands at something under $30 trillion, with assets at over twice that amount.
I guess what Bernanke is doing, is by continuous QE he will keep the economy ticking over but at the same time devalue the USD and thus reduce the overall debt level in real terms. One would expect assets to maintain their real value during this period and thus over time the debt/assets ratio should markedly improve.
Great in theory, but the only problem is that other major currencies like the EUR and the GBP are also involved in a race to the bottom and the Japanese would love to join in. (If any of my ‘facts’ are questionable, please be so kind and inform me).