Weisenthal writes (my highlight):
The Federal Reserve's quarterly Flow Of Funds report came out today. It contains a wealth of information related to the balance sheets and incomes of various parts of the economy: households, corporations, non-profits, levels of government, and so forth.
Calculated Risk presents what is one of the most important charts derived from the data: Household Net Worth as a Percent of GDP.
As you can see, household net worth is over 400 percent of GDP. This is really a key thing to realize and think about, when you talk about "the national debt." The debt that is owed (much of it to ourselves and the Fed) is dwarfed by the assets that households have. Remember, the national debt is somewhere around 100 percent of GDP. Ultimately, government debt flows through to households, and so even after household debt, the net worth of America is massively positive. We're not broke at all, or even close.
Weisenthal's comment is complete rubbish. Household net worth being high doesn't have a damn thing to do with the national debt problem.
Warren Buffett, Sheldon Adelson and other oligarchs may have total net worth in the trillions, but what exactly does this have to do with most Americans, who if they have any substantial wealth, have a large part tied up in a house? In other words, if the government needs to pay off its debt, and it goes to the average American to do so, it is a big problem, especially since the oligarchs are part of the "protected rich," which means they will always have legislation that will protect them from, among other things, severe taxation.
Weisenthal's chart is typical Keynesian aggregative muddle headed thinking. The national debt is a problem because 1. interest rates will eventually rise, resulting in a huge increase in the deficits and 2. the government will go to the average American to pay down the escalating debt. The government will take from, among others, those who have little, no or negative net worth, by taking from income streams---regardless of a person's net worth. That's the problem.
The per capita debt is now over $53,000---most Americans have nowhere near that kind of cold cash to payoff the debt---or support from income streams higher interest rates on that debt.
Further, Weisenthal's entire argument assumes that the government has some kind of right, in the first place, to go to Americans minding their own business and taking their money to pay down the debt---debt created to finance the expansion of the ever intrusive empire.
Business Insider tends to be a soft thinking, interventionist thinking, apologist for government intervention in the economy. This is just another example of that.