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04/18/2005 Archived Entry: ""
Gordon P writes, Interesting article on the FedGov's "creative accounting" practices, which the author notes would be considered FELONY FRAUD if used by any business in the "private sector".
Apparently, according to even the Congressional Accounting Office, the FedGov is systematically understating the National Debt by _MORE THAN A FACTOR OF TWO_: In 2004, it was closer to US$ 8.5 Trillion, rather than the "official" figure of US$ 4 T, which includes only "publicly held debt" (e.g., gov't bond, etc.). This figure also does not include the estimated US$ 3.9 Trillion owed in pensions and other benefits to Federal Employees, Veterans, etc., which are likewise kept "off the books."
Of course, even _that_ figure pales into insignificance when compared to the expected "unfunded liabilities" represented by Social Security and Medicare, which the CBO conservatively estimates at over US$ 45 Trillion when discounted to 2004. For comparison, the 2004 US GDP was (apparently) around US$ 11 Trillion. (It seems hard to get a definitive GDP figure, since most reports only give "seasonally adjusted percent changes," not absolute figures. I obtained US$ 11 T by multiplying the "official" Per Capita GDP by the "official" U.S. population; YMMV.) I submit that any entity whose liabilities are over 4 times larger than its gross income is, by any reasonable measure, _BANKRUPT_. The U.S. is without a doubt the World's Largest "Banana Republic."
In other news, the CBO also finds that the deficit must be blamed squarely on Congress's unwillingness to control FedGov spending, not on "Bush's" Tax-Cuts (which are of course _also_ Congress's fault, since they voted for them!). Even after the "Tax-Cuts", Federal Revenues _still_ increased at 9.4% --- _AMOST 4 TIMES THE RATE OF INFLATION_! Yet in spite of this increased revenue, the deficit _STILL_ increased, at more that twice the rate of inflation. When are the fiscally moronic Congresscritters going to learn that _IT'S THE SPENDING, STUPIDS !!!_ >:-(