Hello ALL:
I want to disagree with many of what I read here.
1. Comparing US economy with that of China and India are not right or good.. for US is in a different phase of its economic curve than that of China or India. US must be compared to Japan, Germany, France or UK.
2. But, comparing China and India are quite right and good because both are nearly in the same phase of their economic curve.
Both have the same population density and size... as per World Bank, nearly 70-80% of their citizens make less than U$2 per day per person.
One has a Single Party (CCP) autocracy in decision making while the other has a multi-party democracy.
India's per capita GDP is about U$1800 per year, China's is about U$4000 per year. the difference could be due to "reforms" started much earlier in 1980 in China, while it got started in earnest in 1992 in India.
3. There is controversy about what's the NET worth of US:
My estimates from Treasury figures and from PIMCO - the Bond King of the World - is about $6 trillions NET.
All assets worth about $78.22 trillions (usdebtclock.org).
PIMCO calculates the present value of ALL future liabilities AND the current debts amount to $ 72 trillions.
This appears to be correct because the World Bond Market believes in the long term solvency of the US, as shown by their willingness to lend money long term at a very cheap interest rate:
10 Yr. T yields about 2% and 30 Yr T yields about 3.2% when the inflation is about 2%.
For me, this is the proof of my calculations... If these yields go up to 10% or so, then I will accept that the US is and will be insolvent very soon.
Till then, I believe US is very solvent.... be happy!
ps. This $6 trillions owned by about 30% of Americans including myself will be transferred to our kids and grand kids in the so-called "Generational Transfer" of wealth and knowledge. LOL...
I want to disagree with many of what I read here.
1. Comparing US economy with that of China and India are not right or good.. for US is in a different phase of its economic curve than that of China or India. US must be compared to Japan, Germany, France or UK.
2. But, comparing China and India are quite right and good because both are nearly in the same phase of their economic curve.
Both have the same population density and size... as per World Bank, nearly 70-80% of their citizens make less than U$2 per day per person.
One has a Single Party (CCP) autocracy in decision making while the other has a multi-party democracy.
India's per capita GDP is about U$1800 per year, China's is about U$4000 per year. the difference could be due to "reforms" started much earlier in 1980 in China, while it got started in earnest in 1992 in India.
3. There is controversy about what's the NET worth of US:
My estimates from Treasury figures and from PIMCO - the Bond King of the World - is about $6 trillions NET.
All assets worth about $78.22 trillions (usdebtclock.org).
PIMCO calculates the present value of ALL future liabilities AND the current debts amount to $ 72 trillions.
This appears to be correct because the World Bond Market believes in the long term solvency of the US, as shown by their willingness to lend money long term at a very cheap interest rate:
10 Yr. T yields about 2% and 30 Yr T yields about 3.2% when the inflation is about 2%.
For me, this is the proof of my calculations... If these yields go up to 10% or so, then I will accept that the US is and will be insolvent very soon.
Till then, I believe US is very solvent.... be happy!
ps. This $6 trillions owned by about 30% of Americans including myself will be transferred to our kids and grand kids in the so-called "Generational Transfer" of wealth and knowledge. LOL...
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