The Gap In The GAPP……………..
Posted By thestatedtruth.com on October 12, 2009
The fiscal condition of the United Sates has deteriorated dramatically during the last several years. On the basis of current obligations, US indebtedness totals “only” about $12 trillion. But when utilizing traditional GAAP accounting – the kind of accounting that every public company in the United States MUST use – US indebtedness soars to $74 trillion. This astounding sum is more than six times US GDP. (GAAP accounting includes things like the present value of the Social Security liability and the Medicare liability – i.e. real liabilities.)
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Perhaps this mind-blowingly large debt load would seem less mind- blowing if it were DE-creasing. But it is not. Instead, the current US administration is amplifying the long-standing American habit of spending money it does not have.
From The Daily Reckoning
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