Let's just say that he does not have good news for us:
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.Um, as an accountant, let me translate this for you: The US is broke. Flat out, bankrupt. Further mucking this picture up is that the government's accounting system is so screwy that the GAO refuses to certify the report that it is required to make to Congress on an annual basis!
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.
Now, that may not mean much to you, but if you're investing in, say, General Motors, and GM's accounting firm issues a financial statement at the end of the year, and puts a disclaimer in it that it was unable to perform a full audit of the books because of GM's accounting systems, you'd better sell and fast, because GM is about to tank.
Actually, it probably already has if you're reading about it in the financial report.
Keep in mind, as well, that this is just what they can vouch for, and that their report specifically has to exclude future payments such as Social Security and Medicare, because by law, they cannot assume the level of those payments will either increase or decrease. And none of the long term costs of the Iraq and Afghani wars are included, estimated to be another $2 trillion dollars.
All to pay for some tax cuts for the rich, who aren't even putting the money back into the American economy.
Thanks a lot, Dubya!
(hat tip to Miss Cellania for pointing out a report on this quietly-released report of December 15)
snarkasm, snarcasm, snarky