U.S. Debt: $53 Trillion and Growing
Posted: Friday, September 12, 2008
GM's 2006 audited accounts indicate that its debts totaled $190.4 billion, which is a daunting 91.8% of the $207.4 billion of revenue GM generated that year. In contrast, not only is the $53 trillion US government debt greater than its annual revenue, it is in fact 20-times greater than the $2.6 trillion of revenue it received last year. The US government's debt load by comparison makes GM look like a paragon of financial prudence.
What about all the US government's assets? Good question. The report values them at $1.6 trillion, but this total excludes the value of so-called StewardshipLand, which equals about 650 million acres, most of which is barren Alaska tundra and desert in Nevada and other Western states. What is this land worth? Yellowstone National Park is worth more than frozen tundra, but let's say that the land is worth $10,000 per acre on average, which is probably a generous valuation. The total therefore is $6.5 trillion, which when added together with the $1.6 trillion of assets in the financial report, totals $8.1 trillion, which is just 15% of the US governments total debt obligations. Any way one looks at it, the US government has a huge negative net worth, and owes far more than it can possibly repay.
Full Article : financialsense.com