<span>The US economy is consistently ranked among the world’s strongest. But cut off its addiction to debt and exhaust its gold and currency reserves, and a very different picture would emerge.</span> <span>The nation’s health as measured by gross domestic product per capita would plunge into negative territory without its dependence on borrowed money, according to data compiled by Bloomberg.</span> <span>In fact, the US would fall almost to the bottom of a ranking of 114 economies by GDP per capita. Only Italy, Greece and Japan would fare worse. That is a seismic shift from America’s comfortable No 5 spot on a list based on conventional measures.</span> <span>To get this measure, Bloomberg took each economy’s 2020 GDP as projected by the International Monetary Fund as a starting point. It then adjusted the number by removing the ability to borrow, while adding reserves to create an alternative wealth measure.</span> <span>US per capita income of $66,900 would be slashed to a negative $4,857 using this measure. That is a total loss of almost $72,000 for every man, woman and child.</span> <span>The US is not alone, though; it is pretty grim across the board. Among the 114 economies included in the final list, 102 would experience reduced per capita wealth if they suddenly lost the ability to borrow.</span> <span>Japan ranked dead last, with more than $93,000 of income erased per person. Its per-capita income of $43,701 in 2020 would flip to a negative $50,000 and its rank on the list would plunge 96 spots, from 18th to last.</span> <span>Nor is the UK immune in the alternate, borrowing-free universe. With debt and reserves at 83 per cent and 5 per cent of GDP, respectively, its economy would see per-capita wealth drop 10 spots to No 29 in this measure – from $43,522 to $9,779.</span> <span>China would see its relative ranking gain a few spots, since its holdings of gold and foreign currency are the world’s largest at $3.36 trillion or roughly 22 per cent of GDP. That dwarfs second-place Japan, with $2.1tn.</span> <span>Luckily for Americans, a debt-free economy is unlikely to happen anytime soon. Even with growing trade wars against China and others, and the Trump administration’s projected $1tn budget deficit in fiscal 2020, the US debt market allows for ample liquidity and the US dollar is considered the world’s reserve currency.</span> The U.S. will need to continue to borrow. The IMF projects America’s government debt to average 109% of GDP over the next five years. Reserves, having averaged $425 billion between 2014 and 2018, would account for less than 2% of the projected $22.2 trillion GDP for 2020.