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To: Terry Mross

I wonder if that two trillion is GAAP or non-GAAP. On the other hand, the government only forces all organizations other than itself to use GAAP calculations...

On that subject, what would happen if some accounting firm actually audited the government as though it was a Fortune 500 company??? I’d love to read that report...


40 posted on 08/05/2011 9:13:43 PM PDT by The Antiyuppie ("When small men cast long shadows, then it is very late in the day.")
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To: The Antiyuppie
>>what would happen if some accounting firm actually audited the government as though it was a Fortune 500 company?

This analysis has been done. See Laurence Kotlikoff's The Coming Generational Storm. Using GAAP, the US is in debt of over $100T.

However, note that this assumes that Social Security and Medicare are "contracts" in the sense of a pension fund or annuity. They are not (see Nestor v. Fleming). Nonetheless, Kotlikoff believes the government will attempt to honor these intergenerational "promises", and he sees intentional hyperinflation as the most likely policy choice.

53 posted on 08/05/2011 10:53:08 PM PDT by oblomov
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