Government Accounting Makes a "Budget" Deal Sound More Like Circus With Our Bread


pic credit: more new math


The very basis of government accounting dictates that it doesn't matter if the money actually exists, all that matters is if the money set aside is spent. So what does this "budget" deal in the Capital Wasteland actually mean for the entire foundation of its accounting system?

USA Today:
President Obama plans to outline a fresh multiyear plan to cut the federal deficit by raising taxes on the wealthy and limiting government health benefits for the poor and elderly in what the White House says will be a major speech to the nation Wednesday.

"Every corner of the federal government has to be looked at," White House senior adviser David Plouffe told CNN's State of the Union on Sunday, two days after Obama and congressional leaders struck a down-to-the-wire deal over spending cuts for the remainder of this budget year, which ends in September.

That agreement, which averted a partial government shutdown, would cut $38.5 billion. Many of those cuts involve money that was allocated but had not yet been spent. More details are expected to be released today as Congress prepares to vote on the agreement later this week.
Notice how the things a government spends money on aren't called credits, because no one's account gets credited until the project is actually billed. $2 trillion should be in the Social Security "fund" but somehow it has been stuffed with IOUs that are, essentially, worthless. Is there actually even a deficit? WTF is going on?

WaPo:
Obama is committed to doing more to slash the fast-rising cost of Medicare and Medicaid, to roll back George W. Bush-era tax cuts for those earning more than $250,000 and to even discuss changes to Social Security.

For Obama, the political stakes are high. He will be trying to convince voters concerned about the growing debt that he is serious about cutting government spending and Democratic allies that he will protect key government programs, while also working to ensure spending is not cut so much that it impairs economic recovery.

In a speech scheduled for Wednesday, Obama will present his most extensive response to date in the debate over controlling federal spending. White House advisers have been discussing for months whether he should take the lead on deficit and debt reduction, concluding that his best approach for beating back Republican proposals for much deeper cuts would be to put forward his own vision.
We could solve this problem very easily by eliminating the number #1 Debt Pusher and the funniest part is Congress even has the power to do this but chooses not to, so I guess we'll keep dealing with this same bullshit over and over for as long as there is still a shred of integrity to keep the Debt Pusher in business.

Jr Deputy Accountant

Some say he’s half man half fish, others say he’s more of a seventy/thirty split. Either way he’s a fishy bastard.

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