Re: financial debt [was Relationship between Nonfinancial Debt and GDP]

Walter Hart wrote:
> 
> Excerpts:
> >...
> > Did something happen in 1982
...

As many of you know, the Federal Reserve
publishes a most extensive quarterly about
federal debts, called, Z1.

This may be obtained at:

        http://www.federalreserve.gov/releases/Z1/

In addition, the FRS publishes a "Guide to the
Flow of Funds Accounts."  They don't do this
regularly.  When I acquired mine from the FRS,
it was dated 1993.  The price?  $8.50

One important distinction.  This report, and
the corresponding Z-1 series, addresses both
"levels" and "flows."

All tables regarding flows begin with "F."  All
tables regarding levels begin with "L."

All tables in my book begin with "F" -- as it
is a guide to the "flow of funds accounts."

In examining Z1, I found I was more interested
in the "Level tables" -- but, this publication
helped, nonetheless, as F and L tables are about
one for one.

The guide gives you copious details about what
each debt category includes, etc.

***

So.

Many of you have seen a debt summary I've
published.  I'll attach one that needs updating.

Mr. Reed raised the issue of nonfinancial debt.

And, I believe credits/debts between financial
institutions is a different beast.  Yet, if you
look below, you will see that there is $8 trillion
in financial debts.

What I would like someone to explain to me.  Perhaps,
Mr. Zeeve with the Coalition can, is are these loans
simply artifacts of how lending institutions do 
business, or, is this sum, worrisome in any way?

Any thoughts (Josh?)  I would be greatly appreciated
as it is a sum, larger than the current Federal
government debt.

Regards,

Curtiss

(best viewed in fixed point Courier)

   $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$
   $$                 CITS DEBT WATCH INDICES                    $$
   $$============================================================$$
   $$     3.410 trillion -- Federal Government Debt              $$
   $$     1.759 trillion -- Federal Government Obligations(*)    $$
   $$     7.933 trillion -- Federal Government Liabilities(*)    $$
   $$     7.024 trillion -- Household Debt                       $$
   $$     6.356 trillion -- Business Debt                        $$
   $$     1.263 trillion -- State, local government, and other   $$
   $$     -----                                                  $$
   $$    27.745 trillion -- TOTAL "Non-financial" U.S. Exposure  $$
   $$     8.159 trillion -- Loans between Financial Institutions $$
   $$     -----                                                  $$
   $$    35.904 trillion -- TOTAL U.S. Exposure, Sept. 30, 2000  $$
   $$                                                            $$
   $$============================================================$$
   $$    Source:  All numbers except (*) Federal Reserve Board   $$
   $$             Series Z.1                                     $$
   $$             (*) "The U.S. National Debt," Hugh Catherwood, $$
   $$             Journal of the Association of                  $$
   $$                  Government Accountants, June, 2000        $$
   $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$
   $$                                                            $$
   $$             Summary as of June 30, 1999                    $$
   $$                                                            $$
   $$        Lowest U.S. Debt/GDP Ratio '20-'99  -- 1.4          $$
   $$        1929 U.S. Debt/GDP Ratio            -- 1.8          $$
   $$        Current U.S. Debt/GDP Ratio         -- 1.8          $$
   $$        Current U.S. Exposure/GDP Ratio     -- 3.8          $$
   $$                                                            $$
   $$        Index of Artificial Demand (1929)   -- 6.1%         $$
   $$        Index of Artificial Demand (1998)   -- 15.0%        $$
   $$                                                            $$
   $$  Debt/GDP Ratio based on:                                  $$
   $$    GDP 8.873 trillion (U.S DOC, June 30, 1999)             $$
   $$    U.S. Debt excluding U.S. Obligations, U.S. Liabilities  $$
   $$        and the Financial Sector 16.758 trillion            $$
   $$                                                            $$
   $$  Index of Artificial Demand based on:                      $$
   $$    Percentage of (Consumer Debt+Government Deficit)/GDP    $$
   $$    Source: Batra (1999) and Econ. Rept. of the President   $$
   $$                                                            $$
   $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$




-- 


           W. Curtiss Priest, Director, CITS
   Research Affiliate, Comparative Media Studies, MIT
      Center for Information, Technology & Society
         466 Pleasant St., Melrose, MA  02176
   781-662-4044  BMSLIB@MIT.EDU http://Cybertrails.org