Katching’s Equity>Debt Law
“Equity is 10,000 times more powerful than debt.”
A = B/C (for Equity)
D = E*F (for Debt)
G = A/D which is 10,000-to-1
By plugging in some numbers from Professor PDK’s The Untaxing of the United States of America
into the Equity equation and the Debt equation above, the Professor shows that Equity is 10,000 times more powerful than Debt.
Katching’s 1st Law of the Publicly-Listed Company
“The Revenue of a publicly-listed company should never be greater than the Market Value of the company.”
Today more than 49% of global publicly-listed companies are in violation of Katching's 1st Law. These companies include Wal-Mart, The Kroger Co. (KR), and Target Corporation (TGT).
Katching’s 2nd Law of the Publicly-Listed Company
“The GDP of a country with publicly-listed companies should never be larger than the Market Value of its publicly-listed companies.”
According to the CIA Fact Book, the USA leads the global pack of Favorable Countries with a $25.07 trillion Market Value for its public companies as compared with its $19.36 trillion GDP. Of the 16 countries with trillion-dollar GDPs, only seven – Hong Kong, Switzerland, the USA, Canada, the United Kingdom, Japan, and South Africa – have public companies whose total market value exceeds the country's GDP. Nine countries with trillion-dollar GDPs – Australia, France, South Korea, Spain, the European Union, Germany, Brazil, China, and India – have public companies whose total market value is less than the country's GDP.
Based on these Three Laws, Professor PDK has determined that the Globe is undervalued by $408 trillion.
1. The total number of global publicly-listed companies is 76,433
2. The total market value of the public companies is $73 trillion ($73,272,446,523,000)
3. The average market value of 76,433 public companies is $958 million ($958,649,359)
The World needs 425,677 newly-formatted publicly-listed companies requiring a new type of Organization and Management structure based on solid science.