From USA Today: "Rules hiding trillions in debt - Liability $516,348 per U.S. household"
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.It's the new math! According to the federal government, if you lend yourself money you've doubled your assets because you have 1.) the cash and 2.) the I.O.U. to yourself. And if you wonder why I agitate over this issue so much, here's why:
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.
This hidden debt is the amount taxpayers would have to pay immediately to cover government's financial obligations. Like a mortgage, it will cost more to repay the debt over time. Every U.S. household would have to pay about $31,000 a year to do so in 75 years.How can we possibly continue with this accounting fiction?
The White House and the Congressional Budget Office oppose the change, arguing that the programs are not true liabilities because the government can cancel or cut them.Ha ha ha!!!! Oh, heavens.
More - Great minds (like me and Bulldog Pundit) think alike.