What is it Worth?
The Federal Reserve reports Money Stock Measures in an annual report.
The Federal Reserve reports Money Stock Measures in an annual report.
M1 is constructed by summing currency, traveler's checks, demand deposits, and Other Checkable Deposits, each seasonally adjusted separately.
M1 seems to be about 2.006 trillion as of July 2011.1
M2 is M1 plus deposits, transfers and potential demands (summarized for simplicity). Seasonally adjusted M2 is constructed by summing savings deposits, small-denomination time deposits, and retail money funds, each seasonally adjusted separately, and adding this result to seasonally adjusted M1.1
M2 seems to be about 9.313 trillion as of July 2011.1
Size of the annual economy, GDP US estimated for 2010 was $14.5 trillion.2
Size of the current governments National Debt is $14.7 trillion,3 recent annual deficits are about $1.3 trillion, and total 2010 Federal tax revenue $2.162 trillion.4
The value of US currency is determined by the total dollars in circulations plus, deposits and other short term demands compared to the value of US goods services and the value of known physical resources, and an assessment of the unused portion of the value of the “full faith and credit of the United States
So, it should be a calculation of the net worth; assets including government owned lands, (not National parks or privately owned lands) minus liabilities of the USA
US net worth in dollars
US net worth in dollars
______________________ = Actual Value of Currency
Face value of Currency
(Available)
Face value of Currency
(Available)
Liabilities ought to include future obligations like probable Social Security and Medicare shortfalls; clean up costs of environmental contamination caused by government activities like military ranges, radiation, and science research waste sites, and other future costs of undisclosed programs currently underway.
My estimate of other long term and unrecognized future liabilities promised by the government is $56 trillion. My rough guess of the current value of all government lands and other assets is about 75 percent of that, or about $42 trillion.
Do we have more money out than we are worth? Before this brief inquiry my uninformed opinion was we probable had more money printed than we are worth.
My slightly informed opinion is; we have way more money in circulation than all of the US US
Meaning I guess, our US dollar is worth around minus - 11 cents. If that’s right, we owe $1.11 for each dollar.
If we cashed out, we would owe 11 percent more, that’s really sad.
Maybe we shouldn’t have any money in circulation.
Footnotes:
1. Federal Reserve Board H.6 Release, Money Stock Measures, August 25, 2011
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