Re: What value GDP

On Sat, 31 May 2008 14:14:53 -0700, FrediFizzx wrote:

"mally" <Malcymo@xxxxxxxxx> wrote in message
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On Jun 1, 8:22 am, "FrediFizzx" <fredifi...@xxxxxxxxxxx> wrote:
"mally" <Malc...@xxxxxxxxx> wrote in message

news:91062dcb-f656-4b4c-adc8-209729e23392@xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

An eminent Cambridge (England) professor of economics discovered,
after investigation, that a 10% growth of a particular nation
turned
out to be a real growth of 2% when he factored in destruction of
assets. It occured to me that GDP, a measure of economic activity
was
perhaps irrelevant; a bit like measuring the amount of gambling
taking
place and ignoring the winnings and losses.

What I want to know is why do nations not present a balance ***
which would make it easier to establish their financial
performance.
Surely this would not be difficult for most governmental statistics
departments.

Any ideas?

Ken Fisher in his book "The Only Three Questions That Count" does
present a "balance ***" for the US for 2005. Here is a summary.

Total Assets 111.051 Trillion
Total Debt 50.325 Trillion
Net Worth 60.727 Trillion

US Income (GDP) 12.766 Trillion

Not hard to see that the US in 2005 was in fine shape. All the info
to
do this is publicly available. Can you give us a report for 2007?
But
I doubt that it has significantly changed much. Perhaps assets went
down a little and debt went up a little with income rising a little.

Fred

Dear Fred,

Thank you.

Your welcome.

I am not familiar with US statistics but clearly Ken Fisher feels that
he managed to get a grasp on asset value. I would like to know how?
Were they Government assets or an estimate of the total nations asset.
etc. etc.

Total nation's assets. Here is what the chart is titled. "Aggregate
Hard Asset Balance *** of the United States". It says the sources are
Standard & Poors and Federal Reserve Flow of Funds Accounts (FYE 2005).
Clearly with a total of about 50 Trillion in debt it couldn't be just
the gov. assets and debts. US Fed. debt is about 10% of the total debt.

I have often wondered what a nation would use as collateral? Can they
mortgage their army or roads.

;-) The US gov. doesn't need collateral. People are willing to loan
the US gov. money with only a paper IOU as collateral. Trillions of
dollars. Not bad, eh? Most developed national gov. are like that. No
collateral is needed.

I will try to get hold of a copy of Ken Fishers book.

Good. It is an extremely mind-opening book. Dispelling many myths of
economics.

What an idiot.

--
"I know no safe depository of the ultimate powers
of society but the people themselves; and
if we think them not enlightened enough to
exercise their control with a wholesome
discretion, the remedy is not to take it from
them, but to inform their discretion by
education." - Thomas Jefferson
http://GreaterVoice.org/extend

.

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