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To: tacticalogic
Didn't say none actually, just not a material amount, and only when we choose not to save much ourselves, and we get something in return that may be worth more than the money we paid. Money not being wealth, you see.

But if you want to see the main point, consider the following figures. Here is the assets, debt, and net worth of the US household sector in 10 year snapshots going back to 1949. Entries are year, assets, debt, net worth. Source is the Fed's Z.1 data set, figures are in trillions of dollars.

2009, 64.5, 14.1, 50.4
1999, 48.9, 6.8, 42.1
1989, 23.3, 3.5, 19.1
1979, 9.6, 1.3, 8.2
1969, 3.7, 0.5, 3.3
1959, 2.0, 0.2, 1.8
1949, 1.0, 0.05, 0.95

The last 2 are particularly unflattering as to timing, with the stock market near its peak in 1999 and at its lows in this measurement (1Q2009). The asset and net worth lines have since moved up about $5 trillion as the stock market recovered. We get the details in mid September.

Every decade, US household assets owned goes up by huge amounts, and every decade a portion of that larger pool of owned assets is carried by debt - but the net worth line goes up by large amounts, always. Is some of that increase just prices, yes roughly half, the other half is a sustained increase in real wealth.

Even near record highs in 1999 and at bear market lows in stocks and real estate both today, over the last 10 years US households have added over $8 trillion to their net worth, less than half of their $15 trillion in net new assets being carried by new debt. It is perfectly normal for US households to add a trillion a year to their net worth, even with $700 billion a year in new debt.

Debt flat isn't negative net worth. The mistake is that simple.

125 posted on 08/26/2009 8:40:29 PM PDT by JasonC
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To: JasonC

Are you talking about debt management?


127 posted on 08/26/2009 8:44:01 PM PDT by marbren
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To: JasonC

Is gold a good investment?


128 posted on 08/26/2009 8:45:41 PM PDT by marbren
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To: JasonC
The figures I've seen for the unfunded liabilities of the federal government are at 59T. That's more that the net assest of the US households, and appears to be steadily increasing. I don't see how we can maintain that.

It appears that the personal assets of the citizens are being considered to be disposable assets of the federal government that can be used to balance the books. Is the state of California to be considered the same? How many levels of governemnt get to claim your assets as theirs for acconting purposes?

146 posted on 08/27/2009 3:56:47 AM PDT by tacticalogic ("Oh bother!" said Pooh, as he chambered his last round.)
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To: JasonC
What happens to net worth if assets have no value?
151 posted on 08/27/2009 6:05:40 AM PDT by marbren
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To: JasonC

What happens if 4 billion people die in the next 10 years?


152 posted on 08/27/2009 6:08:01 AM PDT by marbren
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