Picture a government bathtub with the faucet running and the drain open. The faucet is the taxpayer money running in. The drain is all of the government spending running out: welfare, wars, waste, you name it. The welfare-warfare state comes under threat of interruption when the money being drained exceeds the money coming in through the faucet. The inflows come via the nation’s assets. The outflows fulfill the nation’s obligations or liabilities. The tub’s water level is like the excess of the nation’s value of assets over its liabilities. This is the nation’s net worth. It’s like a reservoir ready … Continue reading The Nation’s Assets and Liabilities