Comments for rutledgecapital.com http://rutledgecapital.com Fri, 30 Dec 2011 01:18:38 +0000 http://wordpress.org/?v=2.9.2 hourly 1 Comment on 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-1197 Eric Atkinson Fri, 30 Dec 2011 01:18:38 +0000 http://rutledgecapital.com/?p=2318#comment-1197 And oh, if anyone is interested in collaborating on building that 1 Tree of Business & Government I just mentioned above, join our group at http://finance.groups.yahoo.com/group/StrategicInternationalSystems And oh, if anyone is interested in collaborating on building that 1 Tree of Business & Government I just mentioned above, join our group at http://finance.groups.yahoo.com/group/StrategicInternationalSystems

]]> Comment on 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.

]]> Comment on 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-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.

]]> Comment on 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-1191 Eric Atkinson Sat, 26 Nov 2011 18:29:33 +0000 http://rutledgecapital.com/?p=2318#comment-1191 According to Generally Accepted Accounting Principles, Total Financial Assets always equal Total Tangible Assets (called a Balance Sheet). Therefore, your chart, while greatly appreciated, seems to be mixing apples (financial assets, which seem to be known) with oranges (tangible assets, which seem to be unknown). Consequently, it would be greatly appreciated if you, along with your most influential fellow experts, asked the Bureau of Economic Analysis, and related Bureau of Labor Statistics, to prepare an accurate: (1) National Balance Sheet, (2) National Income Statement, and (3) National Flows Statement. Furthermore, these 3 Statement must be based on actual financial and tangible asset data required to be obtained from all households, businesses, and banks by the IRS, not these kinds of statistical guesswork tables. Why? Because, the public, as individual and business investors, can't make rational investment decisions based-upon such statistical guesswork, but need drill-down charts according to their world, nation, state, county, town, business, and individual data. I know, it's a lot to ask the government to do, but the government's real job is not just auditing (in the form of today's IRS), but also accounting, in support of public and private budgeting and investing. Without accurate auditing, accounting, budgeting, and investing data, it's difficult for any investor (or economist) to make even remotely accurate predictions (or business plans). According to Generally Accepted Accounting Principles, Total Financial Assets always equal Total Tangible Assets (called a Balance Sheet). Therefore, your chart, while greatly appreciated, seems to be mixing apples (financial assets, which seem to be known) with oranges (tangible assets, which seem to be unknown). Consequently, it would be greatly appreciated if you, along with your most influential fellow experts, asked the Bureau of Economic Analysis, and related Bureau of Labor Statistics, to prepare an accurate: (1) National Balance Sheet, (2) National Income Statement, and (3) National Flows Statement. Furthermore, these 3 Statement must be based on actual financial and tangible asset data required to be obtained from all households, businesses, and banks by the IRS, not these kinds of statistical guesswork tables. Why? Because, the public, as individual and business investors, can’t make rational investment decisions based-upon such statistical guesswork, but need drill-down charts according to their world, nation, state, county, town, business, and individual data. I know, it’s a lot to ask the government to do, but the government’s real job is not just auditing (in the form of today’s IRS), but also accounting, in support of public and private budgeting and investing. Without accurate auditing, accounting, budgeting, and investing data, it’s difficult for any investor (or economist) to make even remotely accurate predictions (or business plans).

]]> Comment on Total Assets of the U.S. Economy $188 Trillion, 13.4xGDP by Thomas H.W. :Luke http://rutledgecapital.com/2009/05/24/total-assets-of-the-us-economy-188-trillion-134xgdp/comment-page-1/#comment-1189 Thomas H.W. :Luke Sun, 13 Nov 2011 22:35:07 +0000 http://rutledgecapital.com/?p=2318#comment-1189 I try hard to trust, but no matter what part of government I make inquiries into it only reinforces my suspicions. My understanding is that the Federal Reserve was created because of panics in the financial sector. With in two decades this great institution did so much to prevent the great depression that we gave them more power. Oh, and the same year they created the Federal Reserve they constitutionally changed the way we elect senators. What I don't get is why the solution to a government agency's incompetence is more money and power? I try hard to trust, but no matter what part of government I make inquiries into it only reinforces my suspicions. My understanding is that the Federal Reserve was created because of panics in the financial sector. With in two decades this great institution did so much to prevent the great depression that we gave them more power. Oh, and the same year they created the Federal Reserve they constitutionally changed the way we elect senators. What I don’t get is why the solution to a government agency’s incompetence is more money and power?

]]> Comment on Total Assets of the U.S. Economy $188 Trillion, 13.4xGDP by Ross Markello http://rutledgecapital.com/2009/05/24/total-assets-of-the-us-economy-188-trillion-134xgdp/comment-page-1/#comment-1188 Ross Markello Mon, 07 Nov 2011 22:59:32 +0000 http://rutledgecapital.com/?p=2318#comment-1188 It's about time this discussion started. What can we do to get financial reporters on CNN or CNBC to address our massive assets? It’s about time this discussion started. What can we do to get financial reporters on CNN or CNBC to address our massive assets?

]]> Comment on Total Assets of the U.S. Economy $188 Trillion, 13.4xGDP by Nate O http://rutledgecapital.com/2009/05/24/total-assets-of-the-us-economy-188-trillion-134xgdp/comment-page-1/#comment-1173 Nate O Tue, 18 Oct 2011 14:58:09 +0000 http://rutledgecapital.com/?p=2318#comment-1173 Any resources to compare this data to other countries? I've looked around a bit but haven't found any info on underlying assets for other economies. Any resources to compare this data to other countries? I’ve looked around a bit but haven’t found any info on underlying assets for other economies.

]]> Comment on Total Assets of the U.S. Economy $188 Trillion, 13.4xGDP by D Sleater http://rutledgecapital.com/2009/05/24/total-assets-of-the-us-economy-188-trillion-134xgdp/comment-page-1/#comment-1167 D Sleater Wed, 05 Oct 2011 08:13:56 +0000 http://rutledgecapital.com/?p=2318#comment-1167 Quite fascinating blog here... many good minds and thinkers. However... like mirrors and card tricks, economics depends on perception, winners/losers, and those who can pull the strings and start the printers... very relativistic. The comment about "production," i.e., "what would happen if we stood still was a very sentient comment. Balance sheet might drop slightly while we fall on our collective butts. Please ponder this... why hasn't anyone above mentioned our unfunded "promises" of services... medicare, retirements, military. Finally, largely thanks to David Walker this accounting is being carried (see it on the USdebtclock.org at bottom. Over $115T, counting and doesn't really carry the liability of all the military disabilities (e.g., many "lifetime" partial disability claims for mental and other distresses), which will drop many trillions more onto this ledger... And the BIG one not discussed here is the relative value of USD if dropped as world trading currency... which is likely if we don't back the dollar, which we could with 1) National Balanced Budget Amendment 2) Pledge (backing of all national resources... e.g. Alaskan Oil, etc, those "funny faces in SD" National Parks... why not? We're selling off our assets to pay interest ... is it not better to "risk" our resources and truly balance our liabilities and to maintain the value of our currency, vis a vis the rest of the world. Main question is WHY are not these UNFUNDED promises considered... the national numbers do not hypothecate the staggering delta between municipal funds held and promised (retirement shortages... daunting liability w/ huge personal implication for shortages and people dropped on to public services (more shortages not hypothocated)... ANY of this bother you or make sense? Look forward to thoughts from the good minds here. Quite fascinating blog here… many good minds and thinkers. However… like mirrors and card tricks, economics depends on perception, winners/losers, and those who can pull the strings and start the printers… very relativistic. The comment about “production,” i.e., “what would happen if we stood still was a very sentient comment. Balance sheet might drop slightly while we fall on our collective butts.

Please ponder this… why hasn’t anyone above mentioned our unfunded “promises” of services… medicare, retirements, military. Finally, largely thanks to David Walker this accounting is being carried (see it on the USdebtclock.org at bottom. Over $115T, counting and doesn’t really carry the liability of all the military disabilities (e.g., many “lifetime” partial disability claims for mental and other distresses), which will drop many trillions more onto this ledger…

And the BIG one not discussed here is the relative value of USD if dropped as world trading currency… which is likely if we don’t back the dollar, which we could with
1) National Balanced Budget Amendment
2) Pledge (backing of all national resources… e.g. Alaskan Oil, etc, those “funny faces in SD” National Parks… why not? We’re selling off our assets to pay interest … is it not better to “risk” our resources and truly balance our liabilities and to maintain the value of our currency, vis a vis the rest of the world.

Main question is WHY are not these UNFUNDED promises considered… the national numbers do not hypothecate the staggering delta between municipal funds held and promised (retirement shortages… daunting liability w/ huge personal implication for shortages and people dropped on to public services (more shortages not hypothocated)… ANY of this bother you or make sense? Look forward to thoughts from the good minds here.

]]> Comment on Total Assets of the U.S. Economy $188 Trillion, 13.4xGDP by John R. Howdyshell http://rutledgecapital.com/2009/05/24/total-assets-of-the-us-economy-188-trillion-134xgdp/comment-page-1/#comment-1166 John R. Howdyshell Fri, 23 Sep 2011 18:21:51 +0000 http://rutledgecapital.com/?p=2318#comment-1166 Hello Dr. John: Love your work ...keep it coming! However, you do have a a typing error as follows" :: Adding those two numbers together produces a (reported) total asset number of $187,813 billion, .........(actually that $187,813 billion should read trillion ).......pretty close to the $200 trillion number I wrote about at the top of the story. (The number would have been much closer 2 years ago before the recent drop in asset values.) Unfortunately, I have no idea what to call this number because it leaves out so many huge question marks. Hello Dr. John:

Love your work …keep it coming! However, you do have a a typing error as follows”
::
Adding those two numbers together produces a (reported) total asset number of $187,813 billion, ………(actually that $187,813 billion should read trillion )…….pretty close to the $200 trillion number I wrote about at the top of the story. (The number would have been much closer 2 years ago before the recent drop in asset values.) Unfortunately, I have no idea what to call this number because it leaves out so many huge question marks.

]]> Comment on Total Assets of the U.S. Economy $188 Trillion, 13.4xGDP by Lee Raconteur http://rutledgecapital.com/2009/05/24/total-assets-of-the-us-economy-188-trillion-134xgdp/comment-page-1/#comment-1155 Lee Raconteur Fri, 12 Aug 2011 14:07:35 +0000 http://rutledgecapital.com/?p=2318#comment-1155 John Visser says: May 27, 2010 at 3:04 am: "1) One person, company or government’s financial asset is someone else’s liability, so at least when we are talking about debt, the effect on net worth is a wash (even thought debt can make the economy much more productive when it gets money into the hands of the most productive people/entities)..>" Stunning and best example yet I have seen of The Debt Culture and the addiction to debt. Assets are only a liability if they are ENCUMBERED. The OP assumes that all assets are bought on credit and owed money. This is a stunning world-view - to John Visser no one can buy anything unless it is on credit and surpluses are impossible. He assumes all PM, free and clear land, anything paid for in full with cash are a liability when they most certainly are not. If I save $30,000 USD and purchase a new auto, there is no debt associated with it. A very telling post. John Visser says:
May 27, 2010 at 3:04 am:

“1) One person, company or government’s financial asset is someone else’s liability, so at least when we are talking about debt, the effect on net worth is a wash (even thought debt can make the economy much more productive when it gets money into the hands of the most productive people/entities)..>”

Stunning and best example yet I have seen of The Debt Culture and the addiction to debt.

Assets are only a liability if they are ENCUMBERED.

The OP assumes that all assets are bought on credit and owed money.

This is a stunning world-view – to John Visser no one can buy anything unless it is on credit and surpluses are impossible. He assumes all PM, free and clear land, anything paid for in full with cash are a liability when they most certainly are not. If I save $30,000 USD and purchase a new auto, there is no debt associated with it.

A very telling post.

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