Tuesday, February 17, 2009

Astronomical Debt?

The Federal Reserve has been busy creating money out of debt for well nigh 100 years... well, at least that is what they say they are doing. In the early 1940's they had increased their assets from the measly $140 million, with which they started life, to over $2 billion [Congressional Record, September 24, 1941, page 1342]. In the intervening years their creative efforts have grown their assets to nearly $2 trillion. By the way, that's a 10.7% annual return for 68 years, achieved without ever selling one glass of lemonade, mining one grain of gold, or forming one bead of sweat.

Today, thanks to their efforts, and those of their fellow central bankers around the world, the face value of derivatives in circulation in the global economy is thought to be well over 1 quadrillion dollars. One might be tempted to think that, however fraudulent or useless their product might be, it's at least a prodigious output.

Or is it?

God created some 70 sextillion stars in one day by the word of his power. Of course that is just our best estimate after 6000 years of estimating. But assume it's close. That's 70 million stars for every single virtual dollar in ciculation- all made in just a day's work. And unlike a paper note of the Federal Reserve which couldn't even reach 1 watt in the best of woodstoves, stars are massive thermo-nuclear reactors each producing the equivalent of 700 quadrillion gigawatt power plants year after year.

When I consider thy heavens, the work of thy fingers, the moon and the stars, which thou hast ordained; What is man, that thou art mindful of him? and the son of man, that thou visitest him? Psalm 8:3-4

No comments: