Ot: Iousa

[ti_boi]

You should watch this:


http://blip.tv/file/1417453?ref=patrick.net

[rounder]

I went to an AICPA conference on government accounting a few months ago where David Walker, former head accountant for the GAO, was the keynote speaker. Everyone knew that he was the doom and gloom guy. He mentioned that ioweusa was coming out in a few days, apparently to be timed with the election campaign. But other speakers from the GAO used the same numbers he did. I don't remember the actual number ($53 trillion?), but he discussed the unfunded liability for Social Security and Medicair benefits, most of it due to Medicair. The number is based on actuarial calculations and represents amounts that will be owed to everyone alive plus survivor benefits of the deceased (i believe). Probably, most people do not know that all publicly traded corporations are required to not only report on their funded and unfunded benefits, but are also required to fund them. For the federal government and state and local governments, they are not only not required to report on them (political suicide for those who do), they are not required to even fund them. At least the federal government can print more money, state and local governments do not have that luxury. I read the other day that Vallejo CA had to file for bankruptcy because they could not fund the salaries and benefits of its government employees. My guess is that, with today's economy, there will be many more unless there is a bailout. We have beeen reading recently about the $700B bailout and where is the money going to come from. But no one is discussing how Social Security and Medicair will be paid for.

[Louis]

Granted, this probably isn't representative of the US population as a whole, but what % of the folks you know are net savers vs going deeper and deeper in debt? I have no idea for my friends.

For the big picture we all make demands on our government, whether they be for more spending on what we want (better roads, Medicare for our parents, whatever), or for fewer taxes. We can only hold ourselves responsible for where we are today.

Do you want to pay more taxes to reduce the deficit? Or have fewer services? I'm guessing not. We all want the other guy to change because his demands are unreasonable. Ours are perfectly OK. I sure don't have an instant solution, but I know who's responsible. Unless you live like Ted Kaczynski (before his arrest) then you are part of the system. I know I am.

Louis