The Three Trillion Dollar War

Apple s stock capitalization has soared, and it became the first trillion dollar company.

It was hard work engineering a five trillion dollar deterioration in America s fiscal position.

But I read this fact the other day, that one trillion seconds equals 32 thousand years, so if you think about that, the context, the casualness with which we talk about trillion dollar bailout here, and trillion there, we are stacking ourselves up for long term leverage.

Finally, investors are adding nearly a trillion dollars worth of net dollar securities to their positions every year, thus increasing the risk of continued dollar accumulation.

Especially as the dollar lost its sacred place as a store of value under the Bush administration, rebalancing these multi trillion dollar portfolios entails selling off dollar holdings, contributing to the dollar s weakening.

First, a trillion dollar bailout package in May prevented an immediate default by Greece and a break up of the eurozone.

It is, she calculates, in the order of one trillion, although it could be as high as 2.7 trillion.

In the two decades that followed, America s debt usually was around 3 trillion, rising or falling with the exchange rate of the dollar.

Japan, China, and other export oriented East Asian economies are indeed eager to keep the value of the dollar relatively high, and their central banks have piled up close to 2 trillion in dollar denominated assets.

I visited one 10 million dollar yacht.

It was a one hundred dollar bill.

It was a one hundred dollar bill.

It was a one hundred dollar bill.

Another Fed governor, Jeremy Stein, has pointed out that foreign banks have dollar liabilities of roughly 8 trillion, much of it short term wholesale funding.

Here's another one For instance, your brain can store 100 trillion facts.

They spend 500 dollars for every one dollar 500 dollars marketing foods that kids shouldn't eat for every one dollar marketing healthy, nutritious food.

Fully two thirds of that total around 2 trillion is invested in dollar based assets, largely US Treasuries and agency securities (i.e., Fannie Mae and Freddie Mac).

One dollar, 10 dollars or 100 dollars per day.

One area to target is sovereign wealth funds, whose combined assets are set to grow over the next decade from 3 4 trillion to 10 trillion.

China s existing portfolio of some 3 trillion worth of dollar bonds and other foreign securities exposes it to two distinct risks inflation in the United States and Europe, and a rapid devaluation of the dollar relative to the euro and other currencies.

Moreover, as Bilmes and I argued in our book The Three Trillion Dollar War, the wars contributed to America s macroeconomic weaknesses, which exacerbated its deficits and debt burden.

Meanwhile, many of these gases need to be curbed because of their wider environmental impact on public health, agriculture, and the planet s multi trillion dollar ecosystems, including forests.

A one dollar spending cut was believed to reduce GDP by more than one dollar, so that fiscal retrenchment was economically costly (while, conversely, stimulus was effective).

Whether you have one dollar, two dollars it doesn't matter.

The initiative's possible denomination could be One Dollar for Development.

Do people think it is easy for a 12 trillion dollar economy to spend beyond its means year after year just to prop up other countries reputations for stability?

Have those who pushed deregulation ten years ago learned their lesson? Or will they simply push for cosmetic reforms the minimum required to justify the mega trillion dollar bailouts?

And we can't fight the threat in the kind of stupid way we're doing, because a million dollar act causes a billion dollars of damage, causes a trillion dollar response which is largely ineffective and arguably, probably almost certainly, has made the problem worse.

One shudders to think what lessons the US financial sector will draw if, after the multi trillion dollar bailout, there are only superficial, toothless reforms. And will China s coastal export interests again prevail in exchange rate policy decisions, at the expense of poor inland consumers?

And a weaker dollar is one way of delivering foreign markets.

The exchange rate was approximately Rp 9.000, to One US Dollar.

For example, one trillion rupees is br One Lakh crore rupees 1 Lakh Crore Rs 1 Lakh Crore Rs (1,00,000 1,00,00,000) Rs 10,00,00,00,00,000 in Indian Notation Rs 1,000,000,000,000 in Western Notation Rs 1 Trillion (short scale) 1012 Rupees.

Consider what a decline of the dollar relative to the yuan would mean for the Chinese. If the Chinese now hold 1 trillion in their official portfolios, a 10 rise in the yuan dollar exchange rate would lower the yuan value of those holdings by 10 .

The plan s central conceit is that government ingenuity can disentangle the trillion dollar sub prime mortgage loan market, even though Wall Street s own rocket scientists have utterly failed to do so.

What started with subprime mortgages spread to all collateralized debt obligations, endangered municipal and mortgage insurance and reinsurance companies and threatened to unravel the multi trillion dollar credit default swap market.

If we take Mood s lower estimate of one trillion, the comparable figure for fish is 150.

One answer, of course, is a complete collapse of the US dollar.

The one anomaly is that the dollar has strengthened in recent weeks.

Indeed, since late 2003, when the Fed first cut interest rates to 1 , triggering the US housing bubble, dollar reserves in emerging markets have increased six fold, reaching 7 trillion by 2011.

A combined wealth decline of around 25 trillion would be roughly 60 of one year s global income.

Occupation currency, including denominations of less than one dollar, was printed on paper.

The benefits from ecosystem services in Latin America amount to 11 trillion, according to one prominent economist s methodology.

Today s 70 trillion world economy will be at 140 trillion before 2030, and 280 trillion before 2050 if we extrapolate from today s growth rate.

US debt exploded to nearly 12 trillion ( 16.7 trillion if intragovernmental holdings are included).