Is that right? The fact I have $100k in savings doesn't reduce consumer debt now does it? Or, if I had an auto loan (which I don't) it wouldn't reduce the loan/debt would it?
If the US is worth $75T why don't they pay off their debt? Oh, most of it is land, narural resources, infracsture, buildings etc and not easily convertible to cash. Is that the case?
Spin it however you want - promises made (social security, medicare) is more than $75T. The argument can be made - even if the US could cash out that $75T (which they can't) they would still have a $75T hole (about 500% of GDP). The facts are the facts and the US has a huge debt problem (a lot worse than in the 1930s).
"If the US is worth $75T why don't they pay off their debt? Oh, most of it is land, narural resources, infracsture, buildings etc and not easily convertible to cash. Is that the case?"
No that's not the case.
The Federal Reserve data shows that the Household and NonProfit Organizations sector had $48.8 trillion in financial assets (non-real estate)including $8.0 trillion in deposits, $4.3 trillion in treasuries/municipalities, $8.8 trillion in corporate equities, $5.1 trillion in mutual funds.
Nonfinancial assets (primarily real estate) totaled $23.1 trillion.
Right - and if households, non-profits, etc cash out what happens to the value of stocks, bonds, munis.
A San Francisco Federal Reserve paper shows that because of boomers retiring (spending less) and cashing out assets (those stocks, bondes, munis) the economy is apt to grow at least 1% less than the average over the last 30-40 years and as a result stocks (for example) are apt to perform poorly thru 2020.
The good news is they expect the market to be considerably higher by 2030 (just 20 years LOL).
Explain to me how slow growth solves our debt problems.
You need to look at the composition of consumer debt and who owes it. Student loan debt just passed revolving consumer debt.
How are these kids getting out of college (and unable to find good jobs) going to service this student loan debt? Unlike, other debt bankruptcy does not wipe out student loan debt. So we have a generation starting out their work lives with a large amount of debt who will be unable to afford to start families or buy a home for many years as they deal with this debt. Student loan debt is the next credit bubble and the implications for the economy and growth is huge.