liabilities

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Off The Cuff: Race For The Exit

Everybody's dancing near the doorway
Friday, November 20, 2015, 4:18 PM

In this week's Off The Cuff podcast, Chris and Mish Shedlock discuss:

  • The Fab 5
    • Without these 5 stocks, the S&P would be negative for the year
  • The "Positive" Impact Of The Paris Attacks
    • Are they kidding???
  • The Insatiable Military Industrial Complex
    • Crisis is being fabricated to keep it fed
  • Housing Is Looking Sick
    • More and more weakness is showing

Click to listen to a sample of this Off the Cuff Podcast or Enroll today to access the full audio and other premium content today. » Read more

Blog

Assets & Liabilities - Crash Course Chapter 14

Why the US is deeply insolvent
Friday, September 19, 2014, 10:29 PM

Building on the previous chapter on the US' tremendous and exponentially-increasing debt, this chapter looks at the shocking shortfall between our nation's assets and its liabilities.

In short, America is deeply insolvent. We're just not admitting it yet. » Read more

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This chapter of the new Crash Course series has not yet been made available to the public.

Each week over the rest of 2014, in sequential order, a new chapter will be made publicly available (we've currently published up to Chapter 12)

If you don't want to wait, you can:

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Our nation has a historic, never-before-seen level of debt and a historic failure to save. Along with debt and savings, one also has to consider assets. After all, does it really matter if you have no savings and a million dollars of debt, if you have assets worth 10 million?

An asset is an item of ownership that is convertible into cash. Assets comprise the total resources of a person or business, including such things as cash, notes, accounts receivable, securities, inventories, goodwill, fixtures, machinery, and/or real estate.

Debts are fixed, while assets are variable. When you take on a debt, there it placidly sits, growing larger until you make payments on it. Assets, on the other hand, are variable, sometimes gaining and sometimes losing value.

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During the Crash Course, you will often encounter numbers that are expressed intrillions. How much is a trillion?

A trillion is a very, very big number, and I think it would be worth spending a couple of minutes trying to get our arms around the concept.

Make no mistake, we should not be lulled into complacency simply because it is too big to really get our minds around.

Keep this lesson in mind as we discuss the total accumulated debts and liabilities of the US, which are many tens of trillions of dollars.