Comments on: Total Assets of the U.S. Economy $188 Trillion, 13.4xGDP http://rutledgecapital.com/2009/05/24/total-assets-of-the-us-economy-188-trillion-134xgdp/ Tue, 24 Apr 2012 14:51:11 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: John Rutledge http://rutledgecapital.com/2009/05/24/total-assets-of-the-us-economy-188-trillion-134xgdp/comment-page-1/#comment-1222 John Rutledge Tue, 24 Apr 2012 14:51:11 +0000 http://rutledgecapital.com/?p=2318#comment-1222 Good point Julian. The Fed board of governors published estimates of government balance sheets until 1994 but then stopped. The GAO has information in some of their publications but you have to dig it out of the footnotes. I would love to see any estimates anyone has of the value of government tangible asset holdings, especially land and mineral rights, if anyone knows of any. JR Good point Julian. The Fed board of governors published estimates of government balance sheets until 1994 but then stopped. The GAO has information in some of their publications but you have to dig it out of the footnotes. I would love to see any estimates anyone has of the value of government tangible asset holdings, especially land and mineral rights, if anyone knows of any.
JR

]]> By: Julian Silk http://rutledgecapital.com/2009/05/24/total-assets-of-the-us-economy-188-trillion-134xgdp/comment-page-1/#comment-1221 Julian Silk Tue, 24 Apr 2012 13:30:33 +0000 http://rutledgecapital.com/?p=2318#comment-1221 The Federal Reserve posts quarterly estimates of flow-of-funds data going back to at least 1996. You have to make guesses about valuation of government assets, which they do not cover, but it is much better than nothing. The Federal Reserve posts quarterly estimates of flow-of-funds data going back to at least 1996. You have to make guesses about valuation of government assets, which they do not cover, but it is much better than nothing.

]]> By: Richard http://rutledgecapital.com/2009/05/24/total-assets-of-the-us-economy-188-trillion-134xgdp/comment-page-1/#comment-1219 Richard Sat, 14 Apr 2012 01:29:29 +0000 http://rutledgecapital.com/?p=2318#comment-1219 We also have a couple hundred million household fire-arms in the hands of American citizens . Just in case anybody gets any ideas. We also have a couple hundred million household fire-arms in the hands of American citizens . Just in case anybody gets any ideas.

]]> By: Is It Time to Flog the Public…Again? | geckogomez.com http://rutledgecapital.com/2009/05/24/total-assets-of-the-us-economy-188-trillion-134xgdp/comment-page-1/#comment-1217 Is It Time to Flog the Public…Again? | geckogomez.com Wed, 04 Apr 2012 03:49:29 +0000 http://rutledgecapital.com/?p=2318#comment-1217 [...] argue that collectively this would be the case, since private assets surpass public assets by about $196 trillion. (A misleading fact since the division of wealth in the United States is far from equal.) Another [...] [...] argue that collectively this would be the case, since private assets surpass public assets by about $196 trillion. (A misleading fact since the division of wealth in the United States is far from equal.) Another [...]

]]> By: John Rutledge http://rutledgecapital.com/2009/05/24/total-assets-of-the-us-economy-188-trillion-134xgdp/comment-page-1/#comment-1209 John Rutledge Sun, 18 Mar 2012 23:13:28 +0000 http://rutledgecapital.com/?p=2318#comment-1209 You make a good point, Robert. Until 1994, the Federal Reserve Board published a report called "Balance Sheet of the United States" that contained detailed expositions of the balance sheets of all the sectors including both the federal government and state and local governments. The reports showed that, in addition to mountains of equipment (ships, tanks, vehicles, etc.) the federal government owned more than 700 million acres of land! The oil and mineral rights to all that land, of course, should be reported as part of its market value. I have written articles in the past in Forbes, the Wall Street Journal, and in a recent book ("Road Warrior") that argue we should be looking at the total government balance sheet--including the value of all tangible assets--when we think about debt issues. In particular, the net worth figures for the government should account for its total asset holdings. when I advise a company having balance sheet issues (solvency) I first start by looking for balance sheet solutions--selling assets. We should be looking at those ideas now for the national debt. Interestingly, the Fed stopped publishing the balance sheet report in 1994. I contacted the research department at the Board of Governors at the time asking why they did this; they said they didn't think the information was very useful. I have always wondered if there were people involved who did not want the information widely disseminated. After all, selling government assets is politically controversial. Since that time you will only find the government assets listed in GAO reports where they appear as footnotes and are described as "assets held in trust for future generations." (In other words, they don't want you to suggest they sell them.) In one of my articles I reported that, from now on, I am going to refer to my house, my car, and my IRA account as "assets for future generations" when preparing my financial statements for the IRS because they are all going to my children (and the government) anyway when I die. Should save me a lot of taxes! JR You make a good point, Robert. Until 1994, the Federal Reserve Board published a report called “Balance Sheet of the United States” that contained detailed expositions of the balance sheets of all the sectors including both the federal government and state and local governments. The reports showed that, in addition to mountains of equipment (ships, tanks, vehicles, etc.) the federal government owned more than 700 million acres of land! The oil and mineral rights to all that land, of course, should be reported as part of its market value. I have written articles in the past in Forbes, the Wall Street Journal, and in a recent book (“Road Warrior”) that argue we should be looking at the total government balance sheet–including the value of all tangible assets–when we think about debt issues. In particular, the net worth figures for the government should account for its total asset holdings. when I advise a company having balance sheet issues (solvency) I first start by looking for balance sheet solutions–selling assets. We should be looking at those ideas now for the national debt.

Interestingly, the Fed stopped publishing the balance sheet report in 1994. I contacted the research department at the Board of Governors at the time asking why they did this; they said they didn’t think the information was very useful. I have always wondered if there were people involved who did not want the information widely disseminated. After all, selling government assets is politically controversial. Since that time you will only find the government assets listed in GAO reports where they appear as footnotes and are described as “assets held in trust for future generations.” (In other words, they don’t want you to suggest they sell them.) In one of my articles I reported that, from now on, I am going to refer to my house, my car, and my IRA account as “assets for future generations” when preparing my financial statements for the IRS because they are all going to my children (and the government) anyway when I die. Should save me a lot of taxes!
JR

]]> By: Robert http://rutledgecapital.com/2009/05/24/total-assets-of-the-us-economy-188-trillion-134xgdp/comment-page-1/#comment-1207 Robert Sat, 17 Mar 2012 23:38:13 +0000 http://rutledgecapital.com/?p=2318#comment-1207 Your not including the biggest asset that the US owns. It's the 4-6 trillion BBLS of oil that lie under our country. Do the math !!!!! The oil is worth more than our entire country!!! And it's all under land and not offshore! It's mostly under federal lands which belong to all of us!!! Your not including the biggest asset that the US owns.
It’s the 4-6 trillion BBLS of oil that lie under our country.
Do the math !!!!!
The oil is worth more than our entire country!!!
And it’s all under land and not offshore!
It’s mostly under federal lands which belong to all of us!!!

]]> By: Cullen/Frost Reports 4th Quarter, Annual 2011 Results | The Street Mirror http://rutledgecapital.com/2009/05/24/total-assets-of-the-us-economy-188-trillion-134xgdp/comment-page-1/#comment-1200 Cullen/Frost Reports 4th Quarter, Annual 2011 Results | The Street Mirror Sun, 05 Feb 2012 17:47:27 +0000 http://rutledgecapital.com/?p=2318#comment-1200 [...] Total Assets of the U.S. Economy $188 Trillion, 13.4xGDP [...] [...] Total Assets of the U.S. Economy $188 Trillion, 13.4xGDP [...]

]]> By: Eric Atkinson http://rutledgecapital.com/2009/05/24/total-assets-of-the-us-economy-188-trillion-134xgdp/comment-page-1/#comment-1196 Eric Atkinson Fri, 30 Dec 2011 00:46:57 +0000 http://rutledgecapital.com/?p=2318#comment-1196 After reviewing the Z1 tables in-depth myself, I understand why this article is confusing everyone on the difference between Financial Assets and Tangible Assets. In short, Financial Assets ALREADY include Tangible Assets; therefore, you need to look at the National Balance Sheet the exact same way the Federal Reserve Bank does at the very bottom of their Z1 report in what they call the Flow of Funds Matrix for 2010 (Billions of dollars; All Sectors -- Assets and Liabilities). That number, all the way to the right, called All Sectors, is the Total National Assets, which is $151.9 trillion, not $181 trillion. However, the FRB should break down Total National Assets into one web-based drill-down Tree of Business & Government which I'm creating by: (1) breaking down the Total National Assets (or Financial Assets, with data from the Federal Reserve Bank) into (2) Financial Assets by Industry (with data from the Bureau of Economic Analysis, including Household Financial Assets by Industry, the largest group), and then break that down into (3) Financial Assets by Occupation (with data from the Bureau of Labor Statistics), and then break that down into (4) Financial Assets By Business Establishment (or Stores & Offices, with data from the Census Bureau). Given all that drill-down information tied to Business Plans By Industry from the Small Business Administration, you can then create 1 Tree of Business & Government, and from that, my ultimate goal, an Online Business Game that simulates reality before actually doing reality as a "new" National Bank & Local Business Owner-Voter. Thanks for this primer though -- good work. After reviewing the Z1 tables in-depth myself, I understand why this article is confusing everyone on the difference between Financial Assets and Tangible Assets. In short, Financial Assets ALREADY include Tangible Assets; therefore, you need to look at the National Balance Sheet the exact same way the Federal Reserve Bank does at the very bottom of their Z1 report in what they call the Flow of Funds Matrix for 2010 (Billions of dollars; All Sectors — Assets and Liabilities). That number, all the way to the right, called All Sectors, is the Total National Assets, which is $151.9 trillion, not $181 trillion. However, the FRB should break down Total National Assets into one web-based drill-down Tree of Business & Government which I’m creating by: (1) breaking down the Total National Assets (or Financial Assets, with data from the Federal Reserve Bank) into (2) Financial Assets by Industry (with data from the Bureau of Economic Analysis, including Household Financial Assets by Industry, the largest group), and then break that down into (3) Financial Assets by Occupation (with data from the Bureau of Labor Statistics), and then break that down into (4) Financial Assets By Business Establishment (or Stores & Offices, with data from the Census Bureau). Given all that drill-down information tied to Business Plans By Industry from the Small Business Administration, you can then create 1 Tree of Business & Government, and from that, my ultimate goal, an Online Business Game that simulates reality before actually doing reality as a “new” National Bank & Local Business Owner-Voter. Thanks for this primer though — good work.

]]> By: The Best Summary Ever......... - US Message Board - Political Discussion Forum http://rutledgecapital.com/2009/05/24/total-assets-of-the-us-economy-188-trillion-134xgdp/comment-page-1/#comment-1194 The Best Summary Ever......... - US Message Board - Political Discussion Forum Wed, 28 Dec 2011 04:03:23 +0000 http://rutledgecapital.com/?p=2318#comment-1194 [...] assets in the US (which includes private assets) number in the hundreds of trillions of dollars (Total Assets of the U.S. Economy $188 Trillion, 13.4xGDP : rutledgecapital.com). That means your "household" has millions of dollars of capital available to it. This [...] [...] assets in the US (which includes private assets) number in the hundreds of trillions of dollars (Total Assets of the U.S. Economy $188 Trillion, 13.4xGDP : rutledgecapital.com). That means your "household" has millions of dollars of capital available to it. This [...]

]]> By: Eric Atkinson http://rutledgecapital.com/2009/05/24/total-assets-of-the-us-economy-188-trillion-134xgdp/comment-page-1/#comment-1192 Eric Atkinson Sun, 27 Nov 2011 18:28:26 +0000 http://rutledgecapital.com/?p=2318#comment-1192 After reviewing the tables myself, I see why everyone, including me, is confused by use of the terms financial and tangible assets. However, in order to eliminate confusion in the future, I think it would be better if your called them current assets (instead of financial assets) and non-current assets (instead of tangible assets); that is, in accordance with generally accepted accounting principles. After reviewing the tables myself, I see why everyone, including me, is confused by use of the terms financial and tangible assets. However, in order to eliminate confusion in the future, I think it would be better if your called them current assets (instead of financial assets) and non-current assets (instead of tangible assets); that is, in accordance with generally accepted accounting principles.

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