The Real Enron: United States Government
August 3, 2006Another scary article was published today discussing gross (and if it were anyone but the Federal Government, the criminal) negligence. This article, published by the USA Today reveals that the real U.S. deficit FAR exceeds the “official” numbers released by the Government.
Which is worse the “cooking the books” by the Federal Government or that of Enron?
Who’s misrepresentation of financial health will have a bigger impact… Kenneth Lay’s or our Elected Official’s?
Everyone (the press especially) cheers the demise of rich executives who skirt the law and mislead the public and yet where’s the outrage here when we’re talking about the continued fiscal health of every man, woman and child in America now and for generations to come….
Thanks USA Today for your reporting on this issue. If only the American people would begin to give a shit…
What’s the real federal deficit?
How many billions (or trillions) of dollars depends on how you do the accounting
By Dennis Cauchon
USA TODAYThe federal government keeps two sets of books.
The set the government promotes to the public has a healthier bottom line: a $318 billion deficit in 2005.
The set the government doesn’t talk about is the audited financial statement produced by the government’s accountants following standard accounting rules. It reports a more ominous financial picture: a $760 billion deficit for 2005. If Social Security and Medicare were included — as the board that sets accounting rules is considering — the federal deficit would have been $3.5 trillion.
Congress has written its own accounting rules — which would be illegal for a corporation to use because they ignore important costs such as the growing expense of retirement benefits for civil servants and military personnel.
Last year, the audited statement produced by the accountants said the government ran a deficit equal to $6,700 for every American household. The number given to the public put the deficit at $2,800 per household.
A growing number of Congress members and accounting experts say it’s time for Congress to start using the audited financial statement when it makes budget decisions. They say accurate accounting would force Congress to show more restraint before approving popular measures to boost spending or cut taxes.
“We’re a bottom-line culture, and we’ve been hiding the bottom line from the American people,” says Rep. Jim Cooper, D-Tenn., a former investment banker. “It’s not fair to them, and it’s delusional on our part.”
The House of Representatives supported Cooper’s proposal this year to ask the president to include the audited numbers in his budgets, but the Senate did not consider the measure.
Good accounting is crucial at a time when the government faces long-term challenges in paying benefits to tens of millions of Americans for Medicare, Social Security and government pensions, say advocates of stricter accounting rules in federal budgeting.
“Accounting matters,” says Harvard University law professor Howell Jackson, who specializes in business law. “The deficit number affects how politicians act. We need a good number so politicians can have a target worth looking at.”
The audited financial statement — prepared by the Treasury Department — reveals a federal government in far worse financial shape than official budget reports indicate, a USA TODAY analysis found. The government has run a deficit of $2.9 trillion since 1997, according to the audited number. The official deficit since then is just $729 billion. The difference is equal to an entire year’s worth of federal spending.
READ the rest of this important article here: USAToday.com
US ‘could be going bankrupt’
July 17, 2006I came across this great article on the future of the US economy. Oddly enough, I didn’t find it in the US press, but the UK press. It’s quite enlightening and more than a little scary. The irresponsible “who cares about tomorrow” decisions of our government are compounding and will eventually reach a tipping point….
By Edmund Conway, Economics Editor
(Filed: 14/07/2006)
The United States is heading for bankruptcy, according to an extraordinary paper published by one of the key members of the country’s central bank.
A ballooning budget deficit and a pensions and welfare timebomb could send the economic superpower into insolvency, according to research by Professor Laurence Kotlikoff for the Federal Reserve Bank of St Louis, a leading constituent of the US Federal Reserve.
Prof Kotlikoff said that, by some measures, the US is already bankrupt. “To paraphrase the Oxford English Dictionary, is the United States at the end of its resources, exhausted, stripped bare, destitute, bereft, wanting in property, or wrecked in consequence of failure to pay its creditors,” he asked.
According to his central analysis, “the US government is, indeed, bankrupt, insofar as it will be unable to pay its creditors, who, in this context, are current and future generations to whom it has explicitly or implicitly promised future net payments of various kinds”.
The budget deficit in the US is not massive. The Bush administration this week cut its forecasts for the fiscal shortfall this year by almost a third, saying it will come in at 2.3pc of gross domestic product. This is smaller than most European countries – including the UK – which have deficits north of 3pc of GDP.
READ the full article here
Proof: Driving with cell phone as bad as driving drunk, possibly even worse…
July 11, 2006I hate drivers talking on cell phones. Usually, when I see someone do something stupid on the road I say to myself, “if you’d get off the f’n phone maybe you’d be able to merge without cutting people off, see the red light soon enough to stop, see the green light soon enough to go, drive in only one lane etc. etc.”
About 10% of the time, I’m wrong… the driver wasn’t on a phone afterall. The vast majority of the time, however, the bad, half dead to the world drivers are so caught up in a phone call of such importance that it couldn’t possibly wait and clearly must fully occupy the driver’s mind because their driving is stupid, unpredictable and dangerous.
Now there’s research that shows that driving with a cell phone is at least as bad as driving drunk and in many cases (like as the cause for accidents) even worse than driving drunk…
Driving with cell phone as bad as driving drunk, study says
By Tom Avril
The Philadelphia Inquirer
(MCT)
PHILADELPHIA – Drivers who talk on cell phones may be just as dangerous as those who drink.
That’s the sobering conclusion of a study published Thursday by University of Utah researchers who monitored 40 men and women on a driving simulator.
And drivers using hands-free phones were no better than those with the hand held variety, confirming previous studies.
The findings, published in the journal Human Factors, represent a direct blow at a popular pastime that is taken for granted by millions of multitasking drivers.
At any given moment during the day, 10 percent of drivers on U.S. roads are gabbing away on their wireless devices, according to a 2005 estimate by the National Highway Traffic Safety Administration.
Bad idea, said psychologist Frank A. Drews, one of the Utah study’s authors.
“It’s kind of almost unpredictable how they are driving,” Drews said.
When using cell phones, drivers had slower reaction times and more accidents, and they drove inconsistently, sometimes approaching other cars then falling back, he said.
UnbrandAmerica.org: my contribution
July 1, 2006I was quite pleased the other day that I was able to use my domainer skills (and our incredible system at DomainersEdge.com) to secure a domain that The Adbusters Foundation had inadvertently let expire. After winning the domain in auction, I gave it back to Adbusters. That was two days ago. It’s good to see them using the domain already. Below is an email I received earlier this evening. Be sure do give it a “digg” and watch the google video… you’ll see the domain name, UnbrandAmerica.org, at the end of the video.
Jammers and Cultural Creatives,As Rupert Murdoch’s Newscorp buys Myspace, Google sells
free speech off to the highest bidder, and the US Senate bows to
pressure to undermine net neutrality, the web has become a key arena in
which creeping corporatism threatens civil life. So let’s use the very
thing these corporations are trying to kill: the open and democratic
nature of the internet.
Americans of all political stripes are asking: is this my America
anymore? Along with the picnics and fireworks and Corporate American
Flags, what can jammers do to express their resistance and help take
America back?
This July 4th, help spread the meme. Help Unbrand America.
DIGG IT! DIGG.COM
LINK TO IT ! GOOGLE or YOUTUBE
DOWNLOAD IT! ABTV
FORWARD IT! Send this to a friend.
WWW.ADBUSTERS.ORG
Small communities see protests too..
May 2, 2006Chicago and L.A. were not the only cities to see big immigrant protests. Thousands turned out in Davenport, Iowa yesterday to voice their concerns over immigration policy. The question is will the protests help or hurt their cause?
Last night, my home town was featured on a Nightline segment called May Day Immigration protests. The Quad Cities, as the area is often called, has a fairly large Hispanic population at 16%. As I was walking in small, mostly empty, downtown Davenport, Iowa I couldn’t help but hear the cheers of a crowd a few blocks away. I decided to check it out and was really impressed by the turnout.
Clearly, there was more than a thousand people in the park
and you could still see many, many more crossing the bridge from Rock Island over to Davenport. Here’s the local newspaper’s take on the days events.
I watched the peaceful and orderly protest for nearly an hour and I was struck by a few notable items. First, It was an impressive show of organizational ability. I’ve never seen that many people protesting or celebrating any event in this area. Second, I think it demonstrated the seriousness of the Immigrant (Primarily Mexican) community. As a community, there’s little doubt that their intentions are positive. They want to be heard and they feel that “rightness” is on their side.
As an aside, I don’t want to get into the debate about what I think public policy should be in relation to immigration, border control, etc. Like all problems, I believe there is a solution but it would take some bold political action and I don’t think the politicians in Washington are in the business of “bold action”.
Over the course of the afternoon and evening I talked to others about the protests. I wanted to get the take on them from average, middle class, citizens. The impression those conversations left me with make me think that the protests may have done a disservice to the cause. Mid-westerns are nice people. They’re generally even tempered, hard working, and slow to judge others. But, there are some things that just “rub” many the wrong way. All but one of the individuals I spoke with yesterday had some degree of ‘bad feeling’ about the protests.
The root of the bad feeling is the fact that good, hardworking, ‘mind their own business’ Americans don’t like having things “thrown in their face” as one person told me yesterday. “It’s fine if they want to do that, but they don’t need to be telling me what I need to do, what I need to accept.” I imagine her response would have been identical if she’d just witnessed a gay pride parade rather than an immigration protest.
Most people around here are “live and let live” kind of people. They’re intentions are good and they’re actually way too passive on most issues facing the community and country. But, every once in a while something gets their hackles up. A nerve gets struck and people are willing to take massive action to do…to do whatever it takes to keep that nerve from being struck again. The clear response after 9/11 is a good example. A lesser example was the push-back on gay marriage.
In my opinion a lot of Americans need to be sold on the type of immigration reform sought by the organizers of yesterday’s protests if it is to succeed. Protesters and organizers need to keep tread lightly so as not to trigger the nerve. Extra effort (beyond carrying American flags instead of Mexican flags) needs to be taken to show that the similarities between immigrants and the American public.
Protests have a way of turning things into an “us and them”. If this is the result of yesterday’s events, everyone would have been better off going to work.
Posted by Smith 