How much is 700 billion dollars?

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The number buzz now is seven hundred billion dollars. How much is that exactly?

That is $700,000,000,000.  $7 X 10-to the eleventh power.

If you were to put that in a savings account, assume 1% interest with no componding of the interest, that is $7 billion ($7,000,000,000) a year.

From now on, I’ll only deal with the interest numbers.

That’s $583,333,333 a month (yes, over $580 million) a monthi in interest alone.

It is roughly $19,178,082 a day just in interest.

A little under $800,000 in interest an hour.

$13,318 a minute.

$221 a second.

This $700 billion “buyout” can earn $221 a SECOND in interest.  That’s a var payment to some, a week’s worth of groceries to another.  A credit card payment, a student loan, even some utilities.

In a minute you could buy a lower end car, pay off an entire credit card, or even put a down payment on an inexpensive house.

In an hour you could buy a nice home in most parts of the USA, a modest home in the rest.  You could buy 10 fully loaded luxury cars (or maybe 5 if you go really high end).  You could buy 4 nice boats or one small yacht.  In one hour you could put an entire family though a nice college.  You could start a business and have a good cash reserve on hand.

In a day is more money the average American would see in their entire lifetime.  It would buy a lavish home in some of the nicest areas in the US.  One day’s worth of interest is an average lottery jackpot.

In a month the average person would be thrust into high society whose worth would be near the top 1% of the USA.  You could buy a modest company.  You could live the rest of your life, comfortably and lavishly, just off of the interest.  You could own homes in Hawaii, Italy, France, Florida, and California and hire a staff to take care of each home.  In a month you could give significant help to the average disaster in the world.  In an month you would earn more than many nations own GNP.  You could buy a nation for that much.

On the last estimate, ( http://www.federalreserve.gov/paymentsystems/coin/ ) the amount of currency in circulation is roughly $792 billion.  Yes, our government is about to spend just that much alone to bail out some companies that made bad decisions

Just imagine how this will affect the value of the US dollar.  It is already weaker than wet tissue paper, but this will thrust it to lows we can’t even imagine.  The value of the US dollar will drop, that’s a given.  Since a lot of our needed supplies (oil) are foreign, then it will cost that much more, just in inflation, to get what we used to get.  We saw $4 a gallon gas earlier this year.  I think that is nothing.  I wouldn’t be surprised to see $6-$7 gas if this goes the way it is heading.  All the companies who outsourced their jobs will now be paying a lot more for the same help (maybe this is the silver lining?  They’ll be forced to hire more people in the US since we’ll have the “cheap labor”?).

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