Government liabilities rose $2 trillion in FY 2010: Treasury

Reuters ^ | 21 Dec 10 | David Lawder

[SkyPilot]

(Reuters) - The U.S. government fell deeper into the red in fiscal 2010 with net liabilities swelling more than $2 trillion as commitments on government debt and federal benefits rose, a U.S. Treasury report showed on Tuesday.

The Financial Report of the United States, which applies corporate-style accrual accounting methods to Washington, showed the government's liabilities exceeded assets by $13.473 trillion. That compared with a $11.456 trillion gap a year earlier.

Unlike the normal measurement of government intake of receipts against cash outlays, accrual accounting measures costs such as interest on the debt and federal benefits payable when they are incurred, not when funds are actually disbursed.

The report was instituted under former Treasury Secretary Paul O'Neill, the first Treasury secretary in the George W. Bush administration, to illustrate the mounting liabilities of government entitlement programs like Medicare, Medicaid and Social Security.

The government's net operating cost, or deficit, in the report grew to $2.080 trillion for the year ended September 30 from $1.253 trillion the prior year as spending and liabilities increased for social programs. Actual and anticipated revenues were roughly unchanged.

[SkyPilot]

Reuters does some spinning here to try and lessen the blame on The Community Organizer and his fellow Communists:

Among key differences between the operating deficit and the cash deficit were sharp increases in costs accrued for veterans' compensation, government and military employee benefits and anticipated losses at mortgage finance giants Fannie Mae and Freddie Mac.

I will tell you flat out that veterans benefits and every military and federal pension is peanuts compared to TARP and the massive bill having to purchase all the mortgage based securities.

So, Reuters tries to regain some semblence of reality:

The biggest increase in net liabilities in fiscal 2010 stemmed from a $1.477 trillion increase in federal debt repayment and interest obligations, largely to finance programs to stabilize the economy and pull it out of recession.

That money got pissed away in giveaways to state employee unions, payoffs to Democrat groups (do some research where this "stimulus" was larded), and to complete wastes of pork - not to stabilize or pull the nation out of anything.

The federal balance sheet liabilities do not include long-term projections for social programs such as Medicare, Medicaid and Social Security, but these showed a positive improvement.

No $%^& Sherlock! Can't "count" the biggest lead weights around our necks, now can we?

Here is something else Reuters doesn't mention: our biggest problem (in terms of unfunded liabilities) is Social Security. It is also has the largest portion of the budget of any single program. For every Dollar we spend on Social Security, we spend 0.75 cents on welfare. The media never count this, because they and the Democrats won't address welfare as a single program. The break it into 10,000 pieces (cash payments, aid to families with dependent children, food stamps, Section 8 housing, and on and on).

Compared to that, veteran's benefits aren't even a spit in the wind, but Reuters tries to hide the Democrat's spending binge behing wounded warriors? Pathetic.

[Clintonfatigued]

$2 trillion in one year? That’s a number I can’t even imagine.

[Psycho_Bunny]

"Medicaid and Social Security, but these showed a positive improvement"

If payroll taxes are down, and SS is spending more than it takes in, exactly WHAT was the "positive improvement?"

And WTF is "positive improvement"? When is "improvement" not, by definition "positive"?

[allmost]

That’s a relief.

[SkyPilot]

If payroll taxes are down, and SS is spending more than it takes in, exactly WHAT was the "positive improvement?"

There isn't one, and Reuters never elaborates on what it means by "improvement." I have NO idea what they are talking about, because every study I have seen shows Medicade and Social Security becoming insolvent faster than was projected.

Again, my only explanation for this ludicrous reporting is spin, and an attempt to protect massive social program entitlements. That's why they threw veteran's programs under the bus in the article.

So, let me get this straight: this nation can't take care of its vets who served during wartime, but we had $40 Billion to giveaway in a single afternoon to the teacher's union last August with Peloisi's force vote during a time when Congress was not even in session?

OK - I think I got it now.

[sten]

GWBush took office on Jan 2001... The debt was $6 trillion

He left office on jan 2009 with the debt at $9.5 trillion

8 yrs... $3.5 trillion increase

0bama and crew has jacked it to $13.5 trillion in 2 yrs.

$4 trillion in 2 yrs

Thats about 5 times the spending rate

Where is the outrage by those on the left that were complaining about Bush??

[SkyPilot]

0bama and crew has jacked it to $13.5 trillion in 2 yrs. $4 trillion in 2 yrs Thats about 5 times the spending rate

You are 100% correct.

We all have to remember that when the Democrats re-took control of Congress in 2006, the debt was less than $8 trillion. Since Pelosi and Reid have controlled Congress, they have almost DOUBLED the national debt.

The Demoncrats are domestic enemies of the United States, and that's the truth.