Quote from dottom:
The problem with these types of analysis in the URL you posted - gross generalities notwithstanding - is that they only compare debts vs. assets which alone do not tell you anything about the true value of the company (in this case the US) without looking at revenue.
Only by looking at revenue can you understand the impact of debts and other liabilities. Cash-flow is king. With enough revenues you have flexibility. Everyone's getting all worked up about "record deficits" but they should really be looking at deficit as % of GDP. Another trick is that the Federal government does not separate operating budget vs. capital budget which any accounting student can tell you all companies do. So the "deficit" is really a misnomer as the operating budget is always balanced on a year-to-year basis. It's the capital budget, i.e. investment in our country's future, that is a cause of "the deficit". A small % debt of gross revenue for capital investment is a very wise thing and all companies do it. It's called growth.
Also, after looking at revenues (P/E) to valuate a company, you also need to consider growth rate, etc. Sounds very much like fundamental analysis of any stock... my point simply is if these authors are going to make gross generalizations and then drawn conclusions from them, they could at least do a better job of anlaysis.