Chart Of The Day: The Real Household Net Worth As A % Of Debt Chart

Tyler Durden's picture

In the hours following the release of the latest Flow of Funds statement on Thursday, some of the glorified powerpoint-cum-statist tabloid media outlets released a very disingenuous and flat out wrong comparison of household net worth to total US debt (even though technically total US GDP was showed, although the two are now interchangeable with total US Debt having surpassed total US GDP).  Supposedly this was intended to demonstrate the "net worth of America is massively positive" and that America is "not even close to being broke." Of course, by doing so they merely confirmed once more their complete cluelessness when it comes to the debt market, as US household net worth (source) is the direct beneficiary not just of sovereign debt, but certainly all on-balance sheet debt verticals in existence which include, again from the Flow of Funds report tab L.1, household, non-financial corporate, non-financial non-corporate, financial and rest of world debt. The grand total is also conveniently tracked by the Fed in the Total Credit Market Debt Owed category (source) which in the last quarter was $55.3 trillion: just "modestly" above the $16.3 trillion strawman of merely US Federal debt. Comparing this to the $65 trillion in household net worth certainly gives a far less rosy picture of just how "massively positive" net worth of America is.

More importantly, this true total debt number is rising far faster than net worth, and as the chart below shows, as recently as 2 years ago, the ratio of total Household Net Worth for the first time in history dipped below the total Credit Market Debt. It is this ratio that is the true indicator of household viability which is now levered not just by the balance sheet of the US, but by its banks, by its corporations, and, of course, by its households.

And remember: the above chart shows just on the books debt.

But wait, there is more.

Since of the $78.2 trillion in total household assets (and thus net worth), a whopping two thirds is financial-market related, one should also add to the liability side that "other" financial debt that everyone always ignores when doing debt calculations: the all important shadow banking debt which is sufficiently complicated that everyone - monetary theorist most certainly included, always ignore it. And that is a mistake because as we have shown repeatedly it amounts to a whopping $15 trillion, or about the same as total US GDP!

Adding this debt, which is perfectly real debt (including such very real obligations as MBS and Agency debt, repos, ABS paper, and many others), shows that in the quarter ended Sept 2012, household net worth of $65 trillion was not even enough to cover total traditional and shadow debt amounting to a total of $70 trillion, and resulting in a household net worth coverage ratio of 0.92x!

But the bottom line that even tabloid wannabe financial reporters should grasp from this is that the real total debt applicable to US households when calculating consolidated liability exposure is not $16 trillion, but $70 trillion.

And, of course, all this excludes the off-off-balance sheet debt of $90 trillion in underfunded welfare state liabilities.

Still think America is not even close to being broke?

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vast-dom's picture

shadow debt, both banking sector AND Fed, will be magically dissapeared during a perfectly orchestrated distraction.

trebuchet's picture

shadow debt = largely derivative of derivative debt used to fund derivatives so it naturally unwinds as underlying "real" debt unwinds and is unwinding slightly faster than the real debt

but the point is true -> if the economy stops dead in its tracks and everyone called in their ious then this debt would have to be paid and net worth  is negative = PLAIN WRONG we should never be here or even CLOSE TO IT !!!!

Debt does not cause insolvency, lack of cashflow or lack of ability to roll-over the debt, does.  

And govts are relying on printing money to maintain capacity to make interest payments




sunaJ's picture

Slowly and then all at once.  A forty year debt cycle coming to an end.  Magnified 350 million times. 


Denial: check

Anger:  check

Bargaining: check

Depression: check

Acceptance: Not really seein' much of it at all, but maybe I'm just in denial.

vast-dom's picture

And yet the sun keeps rising on this shitshow.

Yes We Can. But Lets Not.'s picture

You two fellas use the same photographer?

Yen Cross's picture

Drip Drip drip drip...

All Risk No Reward's picture

Hi All,

The debt is unpayable *by design*.  The modern day "money changers" have rigged the monetary system the same way they rig the stock market and every other major market.  The criminals are running the show.

The 100% absolute proof beyond any and all doubt is contained in a money flow chart of debt based money.

Debt Money Tyranny

The "money changers" are sovereign and rule the land while everyone else, including the government that props up these criminal money changers (all parties except the nations that have been bombed, are being bombed or will be bombed) are subjugated to this finance fraud international banking cartel.

The iceberg we've been steered into is very clear in that Debt Money Tyranny chart. 

Rearranging the chairs on the Titanic is for fools - it won't help a thing.

Don't wait for any "media star analysts" to tell you the truth, they will be booted off the air before they get it out and then they will be shunned - their livelihood literally stripped from them.

But that's all she wrote - either prepare for the collapse or repeat the truth...  nothing will change until Debt Money Tyranny is eliminated and the criminals who currently run it are tossed from power.  The latter will be difficult because the politicians are financed by the criminals and their front corporations and promoted by the criminally financed, owned and controlled media.

Someone asked on an ObamaCare thread whether the insurance companies run government since they were able to get their legislation shoved down all our throats.

No, the financiers, owners and controllers of the mega insurance companies - the Debt Money Tyrant class - are running the show.

The insurance companies are just a subdivision of their "club."

As is every major corporation out there.

Again, don't be fooled by the collaborators who always discuss re-arranging chairs on this financial Titanic as a "solution."  That trash enables the criminals and does nothing to fix the underlying cause.

If you want to know the planned end game...

“It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning. The one aim of these financiers is world control by the creation of inextinguishable debt.” Henry Ford

Read Propaganda by Edward Bernays

Read Tragedy and Hope by Carroll Quigley

Both are free downlaods at

Watch The Ultimate History Lesson, Poverty - Debt is not a Choice, The Secret of Oz and Debunking Money - The Way the World Really Work on Youtube. search Renaissance 2.0

Oh, and one more thing.  To those people who want to blame this on one group or philosophy, you are **hurting** the cause of good.  This is about good and evil...  or at least "not world destroying evil" and "world destroying evil."

The "Joooos" aren't doing this...  My Jewish neighbors are just as much a victim of this financial genocide as any other of my neighbors.

Folks, we have to stick up for everyone.  Those insecure people who want to dog out "black people," whatever that means, must understand that whatever these social engineering criminals do to African American people is a beta test for you and yours, too!

Stick up for your fellow bondage folk and defend them BEFORE these b*stards come knocking on your door.  Not only is it the right thing to do, it is actually good for you and yours as well.

It is all about an INDIVIDUAL'S CONTENT OF CHARACTER, the rest is pure distraction for the weak minded.

This is no time to be weak minded.

Above all, develop critical thinking and question everything.  Research, in depth, that which is important in your life (like money, toxins in food and water, etc...  chronic disease and dementia on the installment plan). 

“Shake off all fears of servile prejudices, under which weak minds are servilely crouched. Fix reason firmly in her seat, and call on her tribunal for every fact, every opinion. Question with boldness even the existence of a God, because, if there be one, he must more approve of the homage of reason than that of blindfolded fear.”
~ Thomas Jefferson

bunnyswanson's picture

The question is...are you willing to do whatever it takes to save your country.  Who is willing to die to save America? 


Ginsengbull's picture

If we don't live for something, then we surely die for nothing.

Darth Rayne's picture

Fuck the US. We should be more concerned with the American people. The US has a more powerful military than the rest of the world combined. American people are allowed guns, at the moment. Come on American peoples, sort the US out!

We can't sort the US out, as I have mentioned, the US has a bigger military than all us combined, I don't want World War Three, US vs us.

Summary, take down the US Govt and Congress. Start again. We can't do it for you without World War Three.

Until you do, we shall continue to undermine the credibility of the federal reserves notes. Then destroy the reserve status of the federal reserve notes. It is about time you used American dollars, silver and gold. Fuck the FED, fuck the US govt and fuck the senate. Start over.

Without a huge army no-one will invade you. (The Americans have guns.) The world will applaud your bravery in destroying the worlds largest and most powerful government, making all Americans heroes again.

I believe in America and the Land of the Free, I would love to see it in my lifetime. God Bless you all.


Darth Rayne's picture

It looks like an international Financier has down ticked me. Fuck the International Financiers.

All Risk No Reward's picture

For all Alex Jones' faults, he does have this right - we are in an information war.  At least those who are already enslaved by the Debt Money Tyrants.  Those nations that don't charge usury are literally being bombed into submission - that's a hot war.

The people running this wicked system love death, murder, torture, dehumanization, etc.  You know their tree by their fruits.  They are as wicked as the day is long...  and then they stay up late at night to extend their wickedness.

My take on their #1 objective is to have us lose our humanity.  It stands to reason that they would then feel like their inhumanity and evil is justified.

By defend the enslaved, I mean to engage in the information war.  They want violence, not me.  "Whatever it takes to the save country" means to get involved in the information war and expose these criminals and open the minds of those they've mentally enslaved.

The biggest problem, by far, is that the enslaved rather prefer it that way because they are ignorant of the ultimate outcome and, frankly, they are scared chitless of that outcome so they won't admit it could be true.

The denial isn't just flowing through Egypt.

So, prepare as best you can, build a community of people who "get it" and try to develop the trivium critical thinking methodology - the first three of the classical liberal arts that the Rockefeller and Carngegie Foundations sought to keep from you when they started offering teachers pensions in exchange for teaching Debt Money Tyrant curriculum.  What teacher didn't want a free pension - and the short term self interest of the people was leveraged into a weapon to dumb down and indocrinate society to believe the false authorities (government, media, education, major religions, etc...) financed and controlled by the Debt Money Tyrants.

These people aren't dumb, which is why they have a Vader death grip on the entire Western world.  If you think they are stupid, which is the idea proposed by the controlled opposition with the effect of hiding the wicked intent of the Debt Money Tyrants to screw you and yours over good - possibly starve you and yours to death, you have simply applied logic before reviewing the necessary grammar and been fooled into a false paradigm beneficial to mass murderers and societal looters.

However good intentioned Mises was, there was something in his teachings that appealed to the Debt Money Tyrants, which is why one of them funded Mises through the Rockefeller Foundation.

Boxed Merlot's picture

The debt is unpayable *by design*...


Think of a slave bidding on himself.  Could a slave buy / redeem himself?

Freedom is not an option in this system.

End the fed.  For starters.

pauhana's picture

I say we cave on taxes, allow the massive increase in spending - which is coming anyway - and let the chips fall where they may.  I, for one, am tired of this charade.  We are headed for a global collapse so bring it on.  Nothing will change until it actually happens.

Bindar Dundat's picture

I could not agree with more!  We will not be able to get control back until we let them destroy the entire system.  Then we can pounce.  

Guns gold and food and a NWO, but one that is different from what TPTB want.

pauhana's picture

If you need some levity after the depressing deluge of everyday news, try this on for size. You gotta love Monty Python - so ahead of their time:



Dead Canary's picture

Absofrigginlutely! Let Obummer have what ever he wants! The crash is coming no matter what we do. He will get all the blame and we can have Gary Johnson in the White House next time around.

Vegetius's picture

The Shadow banking is all under control, we have the A-Team on that. We have Goldmanites, Eurotrash and the Fed which can be summed up with -

"You don't know the power of the dark side!" 

- Lord Vader

To be honest its more like hell in a handbasket -

“In the end, more than freedom, they wanted security. They wanted a comfortable life, and they lost it all – security, comfort, and freedom. When the Athenians finally wanted not to give to society but for society to give to them, when the freedom they wished for most was freedom from responsibility, then Athens ceased to be free and was never free again.”

- Gibbon

Racer's picture

History will show that the US was yet again another country that thought that 'this time is different' until it wasn't

GeorgeHayduke's picture

Yep. It looks the myth of "American Exceptionalism" will collapse along with a whole bunch of other myths. A lot of slumbering people are going to be slapped hard upside the head when it happens. Many will be numbed in disbelief. My concern lies with those who will not accept it and seek out scapegoats to blame. However and whenever it all comes down, it's going to be interesting.

Harbanger's picture

It's not a myth, we were unique before the socialists fuckd with our Constitution and our currency. 

GeorgeHayduke's picture

It IS a myth as it stands right now. You just said so.This game has run its course in its current form.

It's not just the socialists either. If I'm not mistaken the greed of Capitalists, through a corrupt financial sector, military-industrial complex, insurance industry, agribusiness and big pharma, off-shoring, and big box stores have all had a heavy hand in moving us to this point. Although, I realize many here are incapable of looking at the entire picture and must blame socialists as they have been told to do.

Harbanger's picture

There's your list of scapegoats.  Capitalism, the military and greedy businesses.  The socialist playbook never changes.

GeorgeHayduke's picture

Nice try, but your proud ignorance blinds you. As usual you guys pick and choose what fits your agenda and leave out the rest. Stay that way, it's what we need to see this collapse all the way through. Enjoy it fully.

bunnyswanson's picture

You seem to think Americans landed on this soil and the infrastructure was already in place.  Coming in on the ground floor means nothing, eh?  The shortened miserable lives of our great grandparents who strived to leave their children and grandchildren a country worth living in won't be forgotten by many of us.  The struggles they faced, the blood, sweat and tears are embedded in our DNA.  The people know.  But talking about it has become politically incorrect.  TV tells us economy has never been stronger.  DJIA now determines that according to them.  But we know...we know we are about to hit the Cassandra Crossing and there is no country to escape to. 

State by state, Americans will do what they have to in order to give their children a life worth living. 

Alabama bans United Nations Agenda 21 sustainable green policies

Bill: SB477 (text)

Sponsored by Sen. Gerald Dial, and signed into law by Gov. Robert Bentley, SB477 prohibits the state and all its political subdivisions from enacting environmental and/or developmental policies that infringe on private property rights, “as may be required by policy recommendations originating in, or traceable to ‘Agenda 21,’ adopted by the United Nations in 1992 at its Conference on Environment and Development or any other international law, or ancillary plan of action that contravenes the Constitution of the United States or the Constitution of the State of Alabama.” Furthermore, the state and its subdivisions may not may not enter into any agreement, expend any sum of money, or receive funds contracting services, or giving financial aid to or from those non-governmental and inter-governmental organizations as defined in Agenda 21.

Also: “Alabama Adopts First Official State Ban on UN Agenda 21”

“Agenda 21: Sustainability?”

GeorgeHayduke's picture

Did you read what I wrote? I have been talking about today's situation and how this country AS IT STANDS TODAY is not immune from suffering a possible collapse like many empires, cultures and countries before it. ZH posts countless articles about the pending fiscal cliff, economic collapse, everyone here talks about it then I bring the "exceptionalism" part into play, mention culprits beyond the moron-level usual suspects of socialism, Marxism, communism and you guys get your feathers ruffled.

If you guys think Marxism, Socialism, Communism and UN Agenda 21 are the only things to blame for the problems we face as a country...more power to you. Keep looking for those boogiemen under your bed. I'll go watch cartoons with my kids as it's sure to be much more reality based than what's going on here.

JamesBond's picture

the only difference between reid and boehner is simply the vehicle they are driving into the fiscal brick wall.  reid is driving a gov subsidized electric volt and boehner is driving a subsidized lacrosse 


amazing so many intelligent people can't see this more clearly.



shovelhead's picture

You forgot the orange tan.

If Harry had a tan like that he would look like my dogs asshole.

Winston Churchill's picture

American exceptionalism is total tripe.The hubris of empire repeating itself.

Everyone knew with certainty pre 1914 that God was English ,and played cricket.

The only exceptional thing is how with a country naturally blessed with an

abundance of everything,that the inhabitants have spent themselves into

bankruptcy in record time.

Gazooks's picture

'The hubris of empire repeating itself'.


nuff said.


karma's an exceptionally cyclical bitch

overmedicatedundersexed's picture

winston, a little hard on "Americans"..I am not in debt I did not ok .gov spending most Americans of any value did not ok this stupid economic model of debt gov and Fed bankster crimes..70% of America said no to illegal immigration and for secure borders, no the take over of .gov was done by dark of night and corrupt pols..I take no blame for it, and you should know better.

Winston Churchill's picture

What's your share of the national debt again ?

"all it takes for evil to triumph, is for good men to stand idly by".

"If you are not part of the solution,you are the problem".

Jerome Lester Horwitz's picture

IMHO...Pompous asses that tell others that they should be doing something as they themselves while the hours away commenting thusly, are a big part of the problem!

GreatUncle's picture

Live in an area, your own personal empire. Why would do you need to expand?

Is there not enough in your empire to keep it all going so off you go to conquer and bribe so you can extract more to pacifiy your own little empire.

Each nation, no matter who, all prey on each other to keep their little orderly empires going.

Think Japan has exploited the best so far, 200% of GDP debt and still going. Exploit? Yea you watch how fast it collapses if Japan is not allowed to export anything.


smlbizman's picture

but i have this really neat dow 13k hat....

Wile-E-Coyote's picture

Ohh Syria going to use chemical weapons like Saddam. Except when it's over none will be found.

ShrNfr's picture

They do apparently have a fair amount of them. Some Syrian and Iranian techs were loading a scud back in 2008 with vx and it malfunctioned. After the malfunction, the techs themselves no longer functioned.


Discussion of Syria's chem warfare here:

andrewp111's picture

Syria should use its chemical weapons. Do it now. Go for it. What do you have to lose anyway? If you are going to lose, you might as well lose in style with an epic blaze of glory, and who knows, you might even win!

earleflorida's picture

  Interest Expense on U.S. Debt Outstanding'

take that 'quid pro quo',  o`bomb`r's

Waydown's picture

It sounds to me (I'm not an economist... then again: who are???) that "anti-growth"-stories in this zine are more far-fetched every day. Please, Tyler, if you see possibilities of makin' a buck.... Give me, at least, a hint from time to time!!!!!!!!!!!! AND, as for the Brits: Supper's Ready (Genesis)

bunnyswanson's picture

Anti-growth conspiracy...draining assets from a nation to shift them back into the bankers possession while they redistribute them to developing nations which are tax and labor force friendly, to remold America into a nation which is dedicated to provided resources to these same developing nations, conserving vital resources for the "lucky ones" is far too bizarre to even that what you are saying?

Hey pal.  Did you every see a person with end-stage lung disease due to cigarettes?  Do you know how much cash is made at the expense of someone in the tobacco industry?  How about pharmaceuticals.  Did you realize they factor in the cost of lawsuits into the price they will charge for the drug?

You must be a Canadian. 

Culls have taken place for a variety of reasons.  Oh so pretty is the TV image given to us on Zionist Media.  Hard to believe they'd send a couple hundred million people into poverty and a death spiral after transferring assets out of their possessions?  IT HAS HAPPENED TO THE JEWISH PEOPLE. 

Boxed Merlot's picture



Only after the death of the host nation's firstborn does the plundering of the gold and silver occur.  Will anything or anybody show up on the other side of the sea this time?

Billy Shears's picture

Remember when, like you were a kid, and you first became aware of "credit" and Credit cards?" And, like how, you know, how you thought what a great idea it was just to borrow all of the money you could and buy all sorts of crap and then never pay it back because you would die first. Remember that? Those guys are running the government.!?

Pool Shark's picture

You are "the Walrus."

You triggered a very old, deep memory of mine:

I was four years old the first time I remember seeing my mother purchase something from Sears with a credit card. By the age of four, I already understood that to buy something, you had to pay "money." I remember being amazed that merely by showing the clerk a plastic card and signing a small slip of paper, my mother was allowed to take a brand new appliance home with her.

I remember feeling that there was something "not quite right" about this transaction. Of course my mother explained that we would have to actually pay "money" for the appliance, but not "now", and not "all at once."

Even at the age of four, the idea of getting something at the store without having to pay "cash on the barrel" for it struck me as odd and unnatural...

I guess my point is that even the youngest of children seems to inherently understand the concept that you don't (or at least shouldn't) get something for nothing...


GreatUncle's picture

Strikes a memory for me too.

If you wanted something and credit cards did not exist you saved your money a jar was considered good. Then when you had enough you went to the shop and paid for it haggling if you wanted on the price to save a bit.

From that old position, to the implementaqtion of credit cards and move to the level of debt some people have on credit cards :-)

Takes times for the debt to deleverage and then the time to save enough in a jar.

Waydown's picture

Puede que sea un poco retrasado, pero, por favor, explícamelo un pelín más "light" todo eso, y te llevo a mis sueños...

autofixer's picture

Suenos?  No tengo hay suenos!

Waydown's picture

O es que soy demasiado pedo en estos momentos, remember we have a sort of "macro-puente" this weekend (starting Wednesday) here in Spain. ¡Qué Suerte!