So you think the country's broke? Think again.
Cross-posted from Real Economics.
The cover of a recent issue of Barron's magazine was presented in a recent post on Financial Armageddon. Please note the text on the cover at the top right of the globe (above the red arrow):
"The dollar's swoon is drawing more investors to the $4 trillion-a-day foreign exchange market."
$4 trillion-a-day, folks. That's just in the forex market. There's trillions more traded in the stock, bond, futures, options, and derivatives markets every day. One fifth of one percent of $4 trillion is $8 billion. Multiplied by the number of trading days in a year, that's $2 trillion.
Budget deficit? Tobin Tax Initiative. Problem solved.
There's plenty of money out there. The problem is, we don't control it. But, what are governments for?