<del>Generally</del> Geithner Accepted Accounting Principles & Arthur Treasury Anderson

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Davos
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Posts: 3620
<del>Generally</del> Geithner Accepted Accounting Principles & Arthur Treasury Anderson

Generally Geithner Accepted Accounting Principles & Arthur Treasury Anderson

In 2008 the budget deficit using GAAP (Generally Accepted Accounting Procedures) was $5,100,000,000,000.00. 

John Williams (www.ShadowStats.com) expected the 2009 GAAP deficit to be about $9,000,000,000,000.00, by his own calculations. 

Ninety days late and now using GGAAP (Generally Geithner Accepted Accounting Principles) our budget deficit reeks of Arthur Anderson & Enron, miraculously coming in 800 billion less than the 2008 train wreck. 

A mere $4,300,000,000,000.00 deficit. 

With federal revenues down and federal expenditures up the Treasury is telling us that our deficit fell? Only in Geithner-land. 

We accomplished this massive looting which we call being "overextended" by means of the following: 

Looting of our entitlements "Trust" "Funds" (a total oxymoron since there is no trust and there are no funds).

Counterfeiting under the guise of Quantitative Easing.

And now by using accounting practices reminiscent of Arthur Anderson's days at Enron - only done by our own government. 

Fortunes were made betting against Enron, for those who bet against the US I seriously suspect that they will make Enron's take look like pocket change.

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DrKrbyLuv
Status: Diamond Member (Offline)
Joined: Aug 10 2008
Posts: 1995
Re: <del>Generally</del> Geithner Accepted Accounting ...

Davos, you hit squarely again - my favorite part was "Looting of our entitlements "Trust" "Funds" (a total oxymoron since there is no trust and there are no funds)"  - touche!

You make the clear case that accounting is a charade with this government.  I would add the following:

  • We should be on the accrual basis of accounting to detail future liabilities as part of the composite.
  • What difference does it make which (cash or accrual) system is used when there are so many off balance sheet numbers?

Davos wrote:

Counterfeiting under the guise of Quantitative Easing.

I agree that there is much counterfeiting going on but regarding "Quantitative Easing" (my understanding is that this is zero or almost zero interest rates) I think there is much to be said for it - if applied properly.  The banks benefited from this measure but did not pass it on to the people.  Why not provide 0% loans to the private sector to really stimulate the economy by reducing debt repayment costs? 

Larry

Davos's picture
Davos
Status: Diamond Member (Offline)
Joined: Sep 17 2008
Posts: 3620
Re: <del>Generally</del> Geithner Accepted Accounting ...

Larry I agree. 

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