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).
Great debate guys!!! There are many ways to analyze the issues and solutions. Assets and liabilities of the Fed government determines the leverage ratio and the cash flow needed to fund the debt. We all remember finance 101. Debt magnifies income and losses. So are we making money or loosing money for last 10 years? Seems like with a $1.5 trillion annual deficit, we just lost a little. If I asked you all for a loan of $4 million over 10 years, the first thing you do is look at what? Collateral, my other debts, quantity and quality of my cash flow. America still has equity, I agree Norm. The amount of our fixed liabilities and dwindling ability to generate income is where we are failing. (Long term) Baby boomer money will run out faster than most expect. We are living off our parent's and grandparent's good fortune as a whole. Macro view.