This is real. This is serious. This is the biggest financial story of the past 100 years. And nobody seems to notice or care. Hat-tip to Financial Sense for drawing attention to the Comptroller's report.
Get ready America. Get ready world. The game is up.
Here's US Comptroller David Walker's statement which accompanied his 12/15 Financial Report of the US Government, where he noted our books were in such disarray that they are unable to express a financial opinion as a public auditor normally should.
If the US were a company, our stock would be suspended, our shareholders wiped out, and our leaders would be in jail.
Despite improvement in both the fiscal year 2006 reported net operating cost and the cash-based budget deficit, the U.S. government’s total reported liabilities, net social insurance commitments, and other fiscal exposures continue to grow and now total approximately $50 trillion, representing approximately four times the Nation’s total output (GDP) in fiscal year 2006, up from about $20 trillion, or two times GDP in fiscal year 2000.
As this long-term fiscal imbalance continues to grow, the retirement of the “baby boom” generation is closer to becoming a reality with the first wave of boomers eligible for early retirement under Social Security in 2008.
Given these and other factors, it seems clear that the nation’s current fiscal path is unsustainable and that tough choices by the President and the Congress are necessary in order to address the nation’s large and growing long-term fiscal imbalance.
December 19, 2006
Posted by blogger at 12/19/2006