One point three trillion dollar loss


Just a LITTLE bigger than 248 billion
Just imagine. If someone runs the numbers using standard corporate accounting rules instead of FedGov accounting, the Federal deficit is almost six times bigger than official reports. Emphasis added.

The federal government recorded a $1.3 trillion loss last year — far more than the official $248 billion deficit — when corporate-style accounting standards are used, a USA TODAY analysis shows.

The loss reflects a continued deterioration in the finances of Social Security and government retirement programs for civil servants and military personnel. The loss — equal to $11,434 per household — is more than Americans paid in income taxes in 2006.

"We're on an unsustainable path and doing a great disservice to future generations," says Chris Chocola, a former Republican member of Congress from Indiana and corporate chief executive who is pushing for more accurate federal accounting.

Modern accounting requires that corporations, state governments and local governments count expenses immediately when a transaction occurs, even if the payment will be made later.

The federal government does not follow the rule, so promises for Social Security and Medicare don't show up when the government reports its financial condition.

Bottom line: Taxpayers are now on the hook for a record $59.1 trillion in liabilities, a 2.3% increase from 2006. That amount is equal to $516,348 for every U.S. household. By comparison, U.S. households owe an average of $112,043 for mortgages, car loans, credit cards and all other debt combined.

Unfunded promises made for Medicare, Social Security and federal retirement programs account for 85% of taxpayer liabilities. State and local government retirement plans account for much of the rest.

Don't be surprised that the government lies to you about accounting. And don't be surprised that the FedGovs use accounting practices that would be prosecuted as criminal anywhere else in the country.

This is why you can't trust the government with money. This is why you can't believe government promises of reducing the costs of medicine or retirement. This is why an ever expanding state is an EXTREMELY BAD IDEA.

When the bills come due (and they WILL come due), the cost is going to be catastrophic.

You can expect the FedGovs to welch on the promises of Social Security and health care at that point.

— NeoWayland

Posted: Tue - May 29, 2007 at 07:41 AM  Tag


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