Stupidity like this makes my head do Exorcist spins.
Even if it was true, the household wealth isn't fungible. You would need to find a buyer for it. Who is going to buy all this stuff at whatever the market price you value it is? In a firesale of these assets, the price will drop like a rock. Besides that, $34T is just the Federal debt. We also have FSoA Household debt and Corporate debt. Household debt is $17.3T, corporate is $10T. Add that all up, you're at around $60T.
So, if you were to pay off the debt, you would need to sell assets to get the money to pay it. What's the total FSoA money supply? As of 2023 Q3, it was at $20T. There isn't enough money around to buy even 1/2 of the total debt around. To get more money, you would need to take out more debt, that's what the money is. The FSoA would need to sell more USTs, thus raising the debt. You can't win at this game.
Nevertheless, you have Fed economists who say stupid shit anyhow.
https://www.businessinsider.com/us-debt-household-wealth-federal-default-deficit-interest-rate-costs-2024-1
Don't worry about US debt because household wealth is 4 times bigger, former Fed economist says
RE
Don't worry about US debt because household wealth is 4 times bigger, former Fed eco
Started by RE Jan 13, 2024, 02:22 AM
Message path : / Society / The American economy / FSoA Sovereign Debt Hockey Stick Blues #5
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