USA Inc. Net Worth:
-$44 Trillion in Perspective
There are doubts about the accuracy of such a big negative number, especially when the value of USA Inc.’s assets is so hard to calculate. The value of natural resources, the power to tax, the ability to print the world’s reserve currency, the human capital in our educational system — these and other assets would clearly reduce that number, if they could be accurately calculated.
Given the differences between government and corporate accounting, what matters is not the exact number, but the trend — which is clearly moving in the wrong direction. Liabilities have been growing faster than assets. Just to put that $57 trillion into context...
-$44 Trillion = $142,999 per Person in USA' $370,961 per Household‘ 20x USA Inc. Annual Revenue? 3.8x S&P500 Total Market Capitalization? 3.0x USA Annual GDP* 0.9x Global Stock Market Capitalization® 0.8x Total USA Household Wealth®
Source: 1) Population & household data as of 1/10, per Census Bureau estimates; 2) annual federal income in F2010, per Dept. of Treasury; 3) as of 1/11, per S&P;
4) GDP is 2010 nominal figure, per BEA; 5) as of 1/10, per World Federation of Exchanges; 6) as of CQ3:10, calculated as total net worth of households &
KP nonprofit organizations, per Federal Reserve (12/10 data). CC —— USA Inc. | Balance Sheet Drilldown 211
We Believe Citizens Should Consider These ‘Off-Balance Sheet’ Liabilities
For A ‘More Complete’ Understanding of USA Inc.’s Finances
“...the Government’s responsibilities to make future payments for social insurance and certain other programs are not shown as liabilities according to Federal accounting standards... These programmatic commitments remain Federal responsibilities and as currently structured will have a Significant claim on budgetary resources in the future...The reader needs to understand these responsibilities to get a more complete understanding of the Government’s finances.” Department of the Treasury, “2004 Financial Report of the United States Government”
KP Ce USA Inc. | Balance Sheet Drilldown 212
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