FEDERAL DEFICIT REALITY-U.S. Treasury Shows Actual 2003 Federal Deficit at $3.7 Trillion

gillespie research ^ | Sep. 7, 2004 | Walter J. "John" Williams

[CDHart]

"the rapture will hit sometime in the next three years."

I hope you're right. Would you mind explaining why you think it will happen within three years?

Carolyn

[Glenn]

The government pension plans should loan the government the money to cover part of the shortfall. An IOU to federal employees shouldn't bother them. They've handed one to SSI forever.

[palmer]

Similarly, the highest level of debt to GDP seen among the 14 other "AAA" countries is at 75.6% for Canada, followed by France at 71.1%, Germany at 65.1% and Austria at 64.9%, versus a GAAP ratio of total financial obligations to GDP of 334.3% for the United States.

Comparing debt/GDP of other countries to obligations/GDP of US? Apples and oranges. Most Euro countries are in worse shape considering obligations and demographics.

[palmer]

The worst deficit as a percent of GDP was for France at 4.1%, followed by Germany at 3.5%. In contrast, the not-generally-recognized GAAP U.S. deficit in 2003 was 34.2%.

Comparing non-GAAP deficit/GDP of other countries to our GAAP deficit? This guy is nuts.

[eno_]

No real need to bail out the GSEs. We have a housing bubble. How big a surprise is it that it would pop and splatter?

Medicare is also a legislated benefit, and the benefit can be changed.

The only debt number that matters is actual financial instruments. Even government pensions could be cut.

[Moonman62]

Also, I would like to see a comparison of total government debt to assets: government land, etc. Making Uncle Sam hold a debt-reduction sale might not be such a bad thing.

Maybe the government can go on another land grabbing spree if they need more assets. I hope they haven't already signed it over to the UN, though.

[Moonman62]

Under the eventual mandate of Congress, the accounting project culminated in the U.S. Treasury publishing its first formal Financial Report of the United States Government for fiscal year 2000, consistent with GAAP, except for Social Security and similar accounts such as Medicare, Medicaid and the Railroad Retirement Fund.

To the credit of the Bush administration, later reports, published in April 2003 and April 2004 for fiscal years 2002 and 2003, indicated for the first time since the 1980s what the Social Security and related numbers would look like if they were included in the accounting, just as corporations need to account for pension and retiree health benefit liabilities.

What's perplexing is why the Bush administration is so fiscally irresponsible seeing how they published accurate numbers. Perhaps it was a rogue in the administration who's since been fired.

[Gunslingr3]

Also, I would like to see a comparison of total government debt to assets: government land, etc. Making Uncle Sam hold a debt-reduction sale might not be such a bad thing.

Bush needs to put a crimp on the spending spree. Are you holding your breath?

[Gunslingr3]

Thank Goodness Ol' LBJ combined SocSec and General Funds long ago so we don't have to face any real problems!

Sorry, it's always been 'general funds'. It was tax grab designed by FDR's pals to wrench even more money from people for the politicians to spend.

Helvering v. Davis (1937), the Surpreme Court ruled that Social Security was not a contributory insurance program, saying, "The proceeds of both the employee and employer taxes are to be paid into the Treasury like any other internal revenue generally, and are not earmarked in any way."

[eno_]

Bush needs to put a crimp on the spending spree. Are you holding your breath? This is true. Waaaay to many Homelame Security profiteers ripping us off to guard the "critical infrastructure" of Bumfork, Nebraska. That, and there is no progress slowing down the usual pork.

[litehaus]

Holy Smokes! U saying that "trust Fund" they all talk bout ain't there? LOL........