Government’s Creative Accountingby Brad Warbiany
By one number, they had a $248B deficit. If you start applying the accounting standards normal companies use, though… It’s a different story:
The federal government recorded a $1.3 trillion loss last year â€” far more than the official $248 billion deficit â€” 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 â€” equal to $11,434 per household â€” is more than Americans paid in income taxes in 2006.
Think about that for a moment… Just let that number sink in. As you’re struggling to make ends meet, pay your rent or mortgage, your bills, your car payment, the government is losing $1000 a month: and you and your family are going to have to pick up that tab.
When a corporation cooks their books, they do it for a reason; it makes their shareholders believe they’re on better footing than they actually are. If their shareholders knew the truth, the stock price would drop like a rock as people head for the exits. When government cooks their books, they do it for the same reason; it makes their citizens believer they’re on better footing than they actually are. If the citizens knew the truth, they’d vote those thieving scoundrels out of office in a second.
Where do we end up with decades of government lies? At a point where we simply cannot continue the charade. Like Enron, Worldcom, and the rest, eventually it’ll come crashing down.
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.
You think government can tax their way out of this mess? Not a chance.
You think government has the will to cut spending? I think we’ve seen the answer to that one.
What other options are left? Rampant money printing, or collapse of the government. Or the former followed by the latter.
That’s it. The writing is on the wall. And you, as an ordinary citizen, will be getting screwed all the way down.