FSO Editorials: "Bottom Line Debt Summary Table" by Michael W. Hodges 03/17/2004

GRANDFATHER ECONOMIC REPORT
Bottom Line Debt Summary Table
America's Total Debt
by Michael W. Hodges, Author
Grandfather Economic Report
March 17, 2004

Dear Financial Sense Visitors,

Everyone is talking about debt these days. Perhaps now more than ever before - - and with good cause. Recognizing the importance of the individual debt categories as well as the whole picture on debt, I have several extensive chapters on debt (both government and private sectors with zillions of charts) in my Grandfather Economic Report. Several readers of those chapters have requested that I also provide a page in my report that summarizes debt in America presented in a simple table form.

Considering the times and the wish of many for quickies with the numbers, I have created that page called Grandfather Debt Summary Table Report. Financial Sense is publishing my new table as of today, but I encourage you to visit often as the numbers will unfortunately increase.

Knowledge is Power provided you have it based on hard data.

Good hunting,

Michael W. Hodges

Following is a summary table of Government Debt and Private Sector Debt in America from 2 debt chapters of the Grandfather Economic Report series: Federal Government Debt Report & America's Total Debt Report.

BOTTOM-LINE - - DEBT SUMMARY TABLE
AMERICA'S TOTAL DEBT: $37.5 Trillion
~ add another $44 trillion for contingent Social Security/Medicare ~
(updated March 2004)

From our data we have identified:

Federal Government Debt Report debt of $7 Trillion
State & Local Government Report debt of $1.6 Trillion
plus $28.9 Trillion private (household, business and financial sector) debt from America's Total Debt Report.

These sum to $37.5 Trillion - - equivalent to $129,513 per capita.
(This sum does not include the federal government's un-funded contingent liabilities for Social Security/Medicare estimated at $44 trillion, plus additional amounts for unknown (?) contingencies listed below.)

Total Debt in America

DEBT TYPE	TOTAL DEBT AMOUNT	DEBT PER CHILD (per capita)
GOVERNMENT SECTOR DEBT:
Federal Government Sector debt - a record high Treasury data and Federal Government Debt Report (includes $1.5 trillion federal govt. owes foreigners, plus $2.5 trillion debt owed U.S. domestic public, plus $3 trillion surplus siphoned from and owed to trust funds)	$7.0 Trillion	$24,000
State & Local Government Sector debt - a record high State & Local Government Spending Report	$1.6 Trillion	$6,000
Un-funded Social Security contingent liabilities estimated looking forward *	$7.0 Trillion	$24,000
Un-funded Medicare contingent liabilities, estimated *	$37 Trillion	$128,000
Un-funded Federal Employee Pension and Medical contingent liabilities (includes Postal Service)	?	?
Un-funded State & Local Government Employee Pension and Medical contingent liabilities	?	?
Other off-budget Federal Government borrowings*	?	?
SUM OF ABOVE GOVERNMENT DEBT	$52.6 Trillion + ?	$182,000 + ?
PRIVATE SECTOR DEBT: see the America's Total Debt Report
Household Sector debt - soaring record high	$ 9.4 Trillion	$32,000
Business Sector debt - record high	$ 7.4 Trillion	$26,000
Financial Sector debt (domestic) - explosive record high	$ 11.4 Trillion	$40,000
Other (extra foreign debt in addition to such included in numbers above sectors)	$ 0.7 Trillion	$2,000
Un-funded Business Sector Employee Pension and Medical contingent liabilities	?	?
The impact of Trillions of dollars of Derivatives on Business and Financial Sector Debt	?	?
SUM OF ABOVE PRIVATE DEBT	$28.9 Trillion +?	$100,000 + ?
SUM Government + Private Debt (including contingent liability items*)	$81.5 Trillion + ?	$282,000 + ?
SUM Government + Private Debt (excluding contingent liability items*)	$37.5 Trillion	$129,560 per person
? = No estimate available or there may be other contingencies * For discussion of some of the above government items see the Grandfather Social Security Report, the America's Total Debt Report and Trust Fund Report. (Debt Data Sources: Federal Govt. from Treasury Dept.; Private Sector and State & Local Govt. from Federal Reserve flow of funds accounts, table D.3)

Summary:
The above table shows (excluding contingent un-funded liabilities of Social Security and Medicare) total debt (private and government) is $37.5 Trillion, equivalent to $129,560 per person (including those in diapers). This is equivalent to $518,240.00 per family of 4.

If we include those un-funded liabilities, then total debt (private + government) is $81.5 Trillion, equivalent to $282,000 per person. This is equivalent to $1.1 million per family of 4.

This is a very troubling debt load, indeed!! ESPECIALLY with the soaring upward trends!!

Be sure to read 2 powerful debt chapters:

1. Grandfather Federal Government Debt Report
2. Grandfather America's Total Debt Report (includes private sector debt)

each with color data trend graphics
to help tell the story of debt in America

~ since a picture is worth a thousand words ~

Visit the HOME PAGE OF THE GRANDFATHER ECONOMIC REPORT, which includes the table of contents of all chapters, including government spending (federal, state & local), debt, family incomes, education quality, international trade, social security, energy, national security, regulatory compliance cost, voter turn-out, elections, and more.

The Grandfather Economic Report
http://mwhodges.home.att.net/

Web note: The above editorial is a recent summary of an updated page from Michael Hodges series, Grandfather Economic Report.

Michael W. Hodges
Grandfather Economic Report
Email Mr. Hodges