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Debates Forum

Debates Forum

  1. Subscriber AThousandYoung
    Poor Filipov :,(
    16 Jun '13 17:44 / 1 edit
    Assets = Equity + Liability

    Assets of the USA are immense. Liability means debt which is also a huge number.

    So what is America's equity? Do Assets outweigh Liabilities?

    ---

    Some observations - Food Stamps provide Income, so they increase an individual's Equity, while taking out a loan to pay for school increases Liability and Expenses without increasing Equity or Assets...

    So from the accounting equation point of view, food stamps are good, and borrowing money to go to school is not an investment...because it doesn't increase Assets...

    I suspect this equation is driving some of the seemingly irrational behavior I see in the news.
  2. 16 Jun '13 17:49
    Definitely not. America owes a huge debt to China.
  3. Subscriber AThousandYoung
    Poor Filipov :,(
    16 Jun '13 17:51
    Originally posted by Tygert
    Definitely not. America owes a huge debt to China.
    Does that debt outweigh the value of all Federal land, military equipment and other property of the US government?
  4. Subscriber no1marauder
    It's Nice to Be Nice
    16 Jun '13 17:58
    Originally posted by AThousandYoung
    Assets = Equity + Liability

    Assets of the USA are immense. Liability means debt which is also a huge number.

    So what is America's equity? Do Assets outweigh Liabilities?

    ---

    Some observations - Food Stamps provide Income, so they increase an individual's Equity, while taking out a loan to pay for school increases Liability and Expenses wi ...[text shortened]... suspect this equation is driving some of the seemingly irrational behavior I see in the news.
    Assuming Food Stamps are used to buy food, a perishable good, it doesn't increase equity.
  5. Subscriber AThousandYoung
    Poor Filipov :,(
    16 Jun '13 18:00 / 2 edits
    Originally posted by no1marauder
    Assuming Food Stamps are used to buy food, a perishable good, it doesn't increase equity.
    That expense will happen whether or not you have food stamps. So what they are in effect are pre-paid Expenses which go under Assets with no corresponding Liability.

    http://www.investopedia.com/terms/p/prepaidexpense.asp
  6. 16 Jun '13 18:13
    Originally posted by Tygert
    Definitely not. America owes a huge debt to China.
    Approximately 8% of US debt is held by China/HK. The majority is held by institutions and people within the US.
  7. 16 Jun '13 18:31
    Originally posted by AThousandYoung
    Does that debt outweigh the value of all Federal land, military equipment and other property of the US government?
    "Military Equipment"

    It's sad when a countries biggest asset is their military equipment. Whatever happened to peace?
  8. 16 Jun '13 18:36
    Originally posted by Tygert
    "Military Equipment"

    It's sad when a countries biggest asset is their military equipment. Whatever happened to peace?
    Peace sells... but who's buying?
  9. Subscriber AThousandYoung
    Poor Filipov :,(
    16 Jun '13 18:36
    Originally posted by Tygert
    "Military Equipment"

    It's sad when a countries biggest asset is their military equipment. Whatever happened to peace?
    This thread is looking at things from the accounting equation perspective which is how the rich capitalist munchkins seem to see the world.

    Your sissy hippie talk about peace and love is worth nothing here, just as is conservative self righteous blather about personal responsibility.

    This is a thread for math geeks and gamer munchkins, not real people with real emotions and stuff.
  10. 16 Jun '13 18:57
    Originally posted by Tygert
    Definitely not. America owes a huge debt to China.
    China only owns a small percentage of our debt. They're not even our largest creditor. They're a long, distant second.
  11. Subscriber AThousandYoung
    Poor Filipov :,(
    16 Jun '13 19:50 / 2 edits
    Interesting FACT - June is named after Juno, the goddess of money and Roman Queen of the Gods.

    Took me a long time to discover what Juno/Hera's sphere of influence was other than being Jupiter's jealous wife.

    She's the goddess of money.

    I think.

    I'm still not sure.

    Mercury is god of business or something. They're both involved in the money game.
  12. 16 Jun '13 19:54
    Originally posted by AThousandYoung
    Interesting FACT - June is named after Juno, the goddess of money and Roman Queen of the Gods.

    Took me a long time to discover what Juno/Hera's sphere of influence was other than being Jupiter's jealous wife.

    She's the goddess of money.
    If we're going off-topic anyway, did you know that Santa Claus and Wednesday have their origin in the same deity?
  13. Subscriber AThousandYoung
    Poor Filipov :,(
    16 Jun '13 20:03
    Originally posted by KazetNagorra
    If we're going off-topic anyway, did you know that Santa Claus and Wednesday have their origin in the same deity?
    I had heard that. Mighty Woden, king of the Nordic gods. Interestingly he is NOT the Sky Father that is king of most other Indo-European pantheons. Nordics know the Sky Father as Tyr.

    Romans thought Woden was Mercury which is interesting.
  14. Subscriber no1marauder
    It's Nice to Be Nice
    16 Jun '13 20:25
    Originally posted by AThousandYoung
    That expense will happen whether or not you have food stamps. So what they are in effect are pre-paid Expenses which go under Assets with no corresponding Liability.

    http://www.investopedia.com/terms/p/prepaidexpense.asp
    Even if that was sound accounting practice, they would be expensed almost immediately and thus go right off the balance sheet.
  15. Subscriber AThousandYoung
    Poor Filipov :,(
    16 Jun '13 20:26
    Originally posted by no1marauder
    Even if that was sound accounting practice, they would be expensed almost immediately and thus go right off the balance sheet.
    Without the food stamps those expenses would come out of equity.