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Why in the first time in history did we have to print money to ease and back off interest rates? this is why. this is the amount of money available liquid capital in the world s total chi available for governments at affordable rates. , in 2008 we had an economic meltdown and we had extraordinary spending stimulus, tarp. ongoing structural deficits. about $4 trillion. and europe had the same problem and it spiked and we reached this line in 2009 and that is when they implemented qe 1. and quantitative easing was almost the exact number you had to have to back off that line. it was extraordinary. one time spending. qe 2 was part of that. it came down to now we are moving back towards structural deficits. we will hit that wall is what you are talking about. before rerun out of time. i want to talk about when we hit the wall what are the solutions and what do we do to stop this before we come ....
$2.4 trillion. that is the amount that was built into the august debt deal. now, my next guest says forget about the debt ceiling, we need to be worrying about hitting the debt wall. atrney and former followly advisor for president regan, mark mettle is here. what do you mean by the debt wall? an economic term. that point where governments can t borrow money any longer at cheap rates. it becomes unaffordable. affects the average person how? absolutely. interest rates go up on car loans, mortgages. small businesses have trouble financing inventories. just the cost of capital is raised across-the-board in the economy to the point that it becomes unaffordable. mike: is this basic law of supply and demand? the fact that if you have a whole lot of money the interest rates go down. if you don t have any money the interest rates have to go up because the demand is exceeding the supply. would that be a simple laymen ....
Pushed or not purchased or are whether it is effective or not effective or makes economic sense. also goes to show you and i put this in line with the stimulus and the other things the president is talking about doing. you can t just throw money at sock and expect to art fixally stimulate it. this stuff has to organically thrive and grow on its own. mike: people have to want it. the government didn t have to subsidize the development of the iphone because people naturally want it. nobody had to say you will only buy a macbook if the government subsidizes it. people stand in line at the apple store to get them but nobody is standing in line to get the solar panels yet. i hope they do. i love the idea of it. i want it to happen. i think your word is perfect organically. thank you. mike: poverty rate, biggest increase in the poverty rate we had since 1993. more americans living under the line of poverty than we have seen in such a long time. let s talk about the significance of that ....
Through. mike: i think i said earlier in the introduction, $535. it is $535 million. of our taxpayer dollars. our taxpayer dollars. mike: that s right. it really came out of our pockets. we were unwillingly put at risk. that is absolutely right. mike: one of the most damning pieces of evidence has to do with the energy department s audit prior to. saying in analyzing the business plan they said this company solyndra would run out of money and gave a date. september of 2011. kimberly: 2011. 2011. mike: that is a shock. remember the o.e. folks were sitting in board meetings here. the government sitting in on a private company. sitting in and listening to everything that is going on and still giving the company over $500 million of our taxpayer dollars. is another $10 million going out the door before the end of the month. goes to show you whether or not green energy should be ....
mike: we owe more money than we can actually bring in. and then there is a cost of the capital becoming a force unto itself that we will talk about in a minute on solutions. let s talk about what that means injuries the wall ishe te point when you hit the wall the cost of interest rates go up to the point where you to spend money or cut government services dramatically. this line is total world government deficit spending. 181 governments a deficit spending right now. only china arguably is cash flowing. and we could talk about that another day but let s take them at their word that they are. in 2009 we reached this point. we bought our way off of it and came down here. we will talk about that in a minute. quantitativeng kwan taytive easing one. they printed $600 billion. we never asked the question why $600 billion. it was to ease interest rates. ....