National Debt at $59.1 trillion
If the government implements the same accounting standards that corporations use, the national debt would be much higher than the approximate in red ink that the Treasury Department currently reports.
explains that we are not reporting our finances correctly:
Modern accounting requires thatcorporations, state governments and local governments count expensesimmediately when a transaction occurs, even if the payment will be madelater.
The federal government does not follow the rule, sopromises for Social Security and Medicare don't show up when thegovernment reports its financial condition.
Bottom line:Taxpayers are now on the hook for a record $59.1 trillion inliabilities, a 2.3% increase from 2006. That amount is equal to$516,348 for every U.S. household. By comparison, U.S. households owean average of $112,043 for mortgages, car loans, credit cards and allother debt combined.
Regardless of which method is correct, it is interesting that the government refuses to implement the very same accounting procedures that it forces corporations to follow. Under Bush, the debt has increased by at least -- and maybe even higher when using corporate accounting procedures. A lot of that money is being borrowed from banks in countries with corrupt leaders. That may pose a long-term :
As anyone who has had to borrow money is well aware, lenders haveleverage. Whether it's your brother-in-law or the Bank of America, acreditor has claims that you can't entirely ignore.
Because of our low national savings, the United States has had toborrow heavily from foreign countries. Foreign ownership of U.S.Treasury bonds alone increased $1.2 trillion in the first five years ofthe Bush administration.
Much of this money belongs to governments whose interests do not always mesh with our own.
So much for being the party that is big on protecting national security! Hopefully 2004 will be remembered as the last time we bought that nonsense.
Comments