If this article forwarded along by Lloyd is even half right, we’re in more trouble than we know…
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.
Not only are we losing sight of the Constitution, we’re spending ourselves into oblivion. This is simple stuff, if you were in this situation personally, you’d know what to do… Step 1, reign in the spending. Step 2, pay down the debt. Step 3, invest any excess capital. Step 4, don’t spend more than you bring in again. Oh, I forgot, it’s the Congress that holds the purse strings, the same people who bounced check after check from their OWN BANK!
What do you mean there’s no more money, we still have checks! We’re in trouble…