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oh oh #2

Started by herbertyork, 05/24/2012 02:12PM
Posted 05/24/2012 02:12PM | Edited 05/24/2012 02:12PM Opening Post
According to the U.S. Congress, the federal governmentÍs budget deficit last year was $1.3 trillion. According to a USA Today analysis, the true figure is an astronomical $5 trillion.

The reason: Congress exempts itself from including the cost of promised retirement benefits when computing the deficit, unlike companies which must include these commitments in financial statements.

Liabilities for Social Security, Medicare and other retirement programs rose by $3.7 trillion in 2011, but the amount was not included on the governmentÍs books, the analysis found.

If the retirement commitments were included, the deficit would be equal to $42,054 per household. Since the median income of U.S. households is $49,445 according to the Census, the typical household would have paid nearly all of its income in taxes to balance the budget last year if standard accounting rules were used to compute the deficit.

ñBy law, the federal government canÍt tell the truth,î accountant Sheila Weinberg of the Institute for Truth in Accounting told USA Today.
If future commitments are taken into consideration, the deficits from 2004 to 2011 would be six times the official total of $5.6 trillion.

The analysis also determined that federal debt and retiree commitments equal $561,254 per household, while the average household owes $116,057 for mortgages, car loans and other debts.

© 2012 Newsmax. All rights reserved.



Read more on Newsmax.com: Real Budget Deficit $5 Trillion, USA Today Study Finds
I
Posted 05/24/2012 03:58PM | Edited 05/24/2012 04:42PM #1
You are correct and only talking about a slice of the real deficit. The real total deficit is pegged at about 25 trillion as of last month.

Lets not forget all the jobs that were suppose to be created as promised by Obama if the government spent trillions

The chart (below) shows three lines:
1. The incoming Obama Administration's projections for what the unemployment rate would be if no stimulus was enacted in the depths of the financial crisis (light blue).
2. The Obama Administration's projections for what the unemployment rate would be with the President's stimulus plan (dark blue).
3. The actual unemployment rate (through early 2011).
The actual unemployment rate in the chart, you will note, is higher than the "nightmare scenario" initially envisioned by the Obama Administration (with no stimulus). In either case--stimulus or no stimulus--the unemployment rate was supposed to be down to 6% by now. And it's actually above 8%.

As the chart makes instantly crystal clear, the Obama administration drastically underestimated how bad the economy was and drastically overestimated its ability to do something about it.
As a result of this, President Obama over-promised and under-delivered on the single most important challenge of his Presidency.

Henry Blodget



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