Tricky Federal Bookeeping

[Plane]

The Treasury Department simply credits the Social Security, Medicare and other trust funds with interest payments in the form of new Treasury obligations. No cash is actually paid. The trust funds magically increase in value with a bookkeeping entry. It represents money the government owes itself.

So what happens if we take out the funny money?

When the imaginary interest payments are included, Social Security and Medicare are running at a tranquilizing surplus (that $181.5 billion mentioned earlier). But measure actual cash, and the surplus disappears.

http://articles.moneycentral.msn.com/News/FedsBudgetTricksHideTrillionsInDebt.aspx


Haven't they locked up Enron execuives for this?

[Xavier_Onassis]

The truth is, that when SS needs this money, the government will be obliged to cough it up. With interest.
Enron lied to the government. The government may not be responsible, but it it truthful.
$181 billion dollars isn't exactly bankrupt.

You could almost invade a small country like that. I would suggest Switzerland. They have lot of loot.

[sirs]

Can I do my bookkeeping like the Fed does??

[Plane]

The truth is, that when SS needs this money, the government will be obliged to cough it up. With interest.

That must be the Weimar Plan of retirement fund mantenince.

Enron lied to the government. The government may not be responsible, but it it truthful.

Thepoint of thearticle is that it is not.

$181 billion dollars isn't exactly bankrupt.

How much is real?

You could almost invade a small country like that. I would suggest Switzerland. They have lot of loot.

A billion doesn't go as far as it used to, I suggest Canada.