News from the land of OZ: Greenspan: Economy Regai

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Auszug:

The U.S. government's fiscal ills have spun wildly out of control and no longer are containable within the existing system. As detailed in this article, the actual annual shortfall in U.S. government operations for fiscal year 2003 (September 30) was $3.7 trillion. Put in perspective, that means if the U.S. Treasury had seized all wages and salaries in 2003 with a 100% income tax, there still would have been a deficit! The outlook for fiscal 2004 numbers is even worse.
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Nearly four decades ago, President Lyndon Johnson's political sensitivities led him and the Congress to slough off some of the costs of an escalating Vietnam War through the use of accounting gimmicks. To mask the rapid growth in the federal government's budget deficit, revenues from the surplus being generated by Social Security taxes were added into the general cash fund, without making any accounting allowance for the accompanying and increasing Social Security liabilities. This accounting-gimmicked reporting was dubbed "unified" budget accounting.

The government's accounting then, as it is now, was on a cash basis, reflecting cash revenues versus cash expenditures. There were no accruals made for monies owed by or due to the government at some time in the future.
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The gimmicked accounting standards, as established during the Johnson era, and as used today for official, unified budget reporting, show a 2003 deficit of $374.3 billion. Using GAAP reporting (without Social Security reporting), the official GAAP deficit for 2003 expands to $665.0 billion. Including accounting for Social Security and related areas, the 2003 deficit balloons to $3,702 billion, or $3.7 trillion.[2] The accounting reflects no adjustment for the new, more expensive Medicare program.

As an aside, if you download[3] a copy of the financial statements, the GAO's auditor's letter as to why they won't certify the statements is an exposé of significant financial mismanagement within the federal government.

Beyond the $3.7 trillion deficit in 2003, however, the numbers get even worse, because the shadow deficit has been taking its toll ever since the Johnson era. According to the Treasury's 2003 financial statement, the U.S. government has a negative net worth of $34.8 trillion. That $34.8 trillion reflects $36.2 trillion in financial liabilities offset by $1.4 trillion in assets, of which only $0.4 trillion are liquid.

Part of the underlying reality-the actual operating cash shortfall-is reflected in the growth of the federal debt. During fiscal 2003, for example, gross federal debt increased from $6.2 trillion to $6.8 trillion, or by $600 billion, against the unified $374 billion deficit. As of the end of August 2004, the debt had increased to $7.3 trillion.

While gross federal debt is at a record, relentlessly pushing against borrowing ceilings, the markets, press and politicians generally ignore that portion of the debt borrowed from Social Security and similar programs. So, the September 30, 2003 debt level commonly is reported as only the $3.9 trillion owed to the public, instead of the total $6.8 billion. Again, the more accurate GAAP estimate of total government liabilities is $36.2 trillion.

2004 Results

Results for the official 2004 deficit will be published in the next several months, and the numbers are projected by the Bush administration to be significantly worse than in 2003, $445 billion versus $374 billion, with the actual deficit likely to near $4.3 trillion (my estimate). The 2004 GAAP financial statements on the government will not be published until March/April 2005.

GAAP-Based GAAP-Based
Fiscal "Official" Deficit Without Deficit With
Year Deficit Soc. Sec., Etc. Soc. Sec., Etc.
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2004 est. $445 Billion $800 Billion $4.3 Trillion
2003 $374 Billion $665 Billion $3.7 Trillion
2002 $158 Billion $365 Billion $1.5 Trillion
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Enroneconomics ist lebendig, stellt sich in der Praxis dar und hat sich durch die Politiker fortgesetzt.

Von Chairman Greenspan's heutigem testimony:

"The prospects for the federal budget over the longer term remain troubling. As yet, concerns about the budget do not appear to have left a noticeable imprint on the financial markets."

Führen Sie Anpassungen in Ihrem Portfolio durch, bevor die "noticeable imprint" sich ungünstig auf Ihren "noch" günstigen Fähigkeiten auswirkt, unter den Sektoren in den sicheren Hafen des Goldes zu wechseln.

Mit anderen Worten empfehle ich Ihnen den Kauf von physischem Gold und Silber, als Ihre eigene Absicherung vor dem finanziellem Sturm, der mit Sicherheit kommen wird.  

Füßen weg.

Klingt für mich so, als wenn Alan Greenspan wieder in die Stimmung zurück gekehrt, ist um den Präsidenten den Teppich unter den Füßen weg zu ziehen. Wird Bush jr. die gleiche Behandlung wie sein Vater erfahren? Für mich klingt dieses als sicher. LOL!