IS AMERICA BANKRUPT?
You decide:
The official govt numbers released for the year ending 2006deficit was right at $248 billion dollars but if you look closer at the 2006 financial report of the U.S Govt The actual deficit is $4.6 TRILLION DOLLARS.The difference between the $248 billion "official" budget deficit numbers and the $4.6 trillion budget deficit reported in the 2006 Financial Report of the United States Government is that the official budget deficit is calculated on a cash basis, where all tax receipts, including Social Security tax receipts, are used to pay government liabilities as they occur.
The calculations in the 2006 Financial Report of the United States Government are calculated on a GAAP basis ("Generally Accepted Accounting Practices") that includes year-for-year changes in the net present value of unfunded liabilities in social insurance programs such as Social Security and Medicare.
Under cash accounting, the government makes no provision for future Social Security and Medicare benefits in the year in which those benefits accrue.
There is no Social Security 'lock-box.' There are no funds held in reserve today for Social Security and Medicare obligations that are earned each year. It's only a matter of time until the public realizes that the government is truly bankrupt and no taxes are being held in reserve to pay in the future the Social Security and Medicare benefits taxpayers are earning today."
Basic math dictates to me that if a household,company or entity at the end of the yr owes out over 10X the amount brought in is definetly near insolvency but it gets worseShadow Government Statistics,
Econometrician John Williams, who publishes the website Shadow Government Statistics, asserts that the $4.6 trillion figure “is fully validated in the Financial Report of the United States, a little-known report Congress has mandated that the Treasury Department publishes each year, reporting the federal budget on a gaap [generally accepted accounting principles] accounting basis, not on a cash accrual basis.”
America’s liabilities are so large that according to Williams, “Even if the federal government raised individual and corporate income taxes to 100 percent, simply confiscating every penny every business and person in the U.S. made, we would still have a federal deficit.”
Calculations from the 2006 Financial Report of the United States Government also show that the GAAP negative net worth of the federal government has increased to $53.1 trillion, while the total federal obligations under GAAP accounting now total $54.6 trillion.
In a letter included in the 2006 Financial Report of the United States Government, David M. Walker, the comptroller general of the United States, commented on the $53 trillion federal government GAAP accounted negative net worth by noting, "This translates to a current burden of about $170,000 per American or approximately $440,000 per American household."
WOW!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!Funny thing is that none of main stream media feels this is a story worth covering that our govt at the end of 2006 is 4.6 TRILLION short for the fiscal yr and $53 TRILLION+upside down in the net worth category.
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