Some depressing financial news:
The federal government recorded a $1.3 trillion loss last year — far more than the official $248 billion deficit — when corporate-style accounting standards are used, a USA TODAY analysis shows.
The loss reflects a continued deterioration in the finances of Social Security and government retirement programs for civil servants and military personnel. The loss — equal to $11,434 per household — is more than Americans paid in income taxes in 2006.
“We’re on an unsustainable path and doing a great disservice to future generations,” says Chris Chocola, a former Republican member of Congress from Indiana and corporate chief executive who is pushing for more accurate federal accounting.
Modern accounting requires that corporations, state governments and local governments count expenses immediately when a transaction occurs, even if the payment will be made later.
The federal government does not follow the rule, so promises for Social Security and Medicare don’t show up when the government reports its financial condition.
Bottom line: Taxpayers are now on the hook for a record $59.1 trillion in liabilities, a 2.3% increase from 2006. That amount is equal to $516,348 for every U.S. household. By comparison, U.S. households owe an average of $112,043 for mortgages, car loans, credit cards and all other debt combined.
Makes the incompetence regarding the current budget deficit seem trivial. Recognizing that global warming is inevitable and we aren’t ever going to do anything about it, and understanding that a complete and total financial collapse of the US government in my lifetime is likely makes me want to just say to hell with it all. When I read news like this I just want to ignore it all, do whatever I want, much like one of my favorite Grateful Dead songs:
You imagine me sipping champagne from your boot
For a taste of your elegant pride
I may be going to hell in a bucket, babe
But at least I’m enjoying the ride, at least I’ll enjoy the ride.
Might as well enjoy the descent. Just pretend it is a roller coaster, and drink heavily.