Moody's: States lacking budgets may affect ratings
WASHINGTON - California, Illinois and Massachusetts have yet to adopt budgets for the fiscal year that began Tuesday, a situation that could potentially affect their debt ratings, according to Moody's Investors Service. |
IFTA Quoted Again
This time the Columbus Dispatch's Joe Blundo weighs in with data from IFTA's Web Site. |
Central Bankers Worried About US Economy
Central bankers are worried about the world's economic situation. They are particularly concerned about the U.S. economy and falling dollar. The bankers call the dollar's decline "orderly" but cannot rule out a "sudden rush" to other currencies. |
Villianous Speculators
Congress takes an easy path to explain the rising cost of oil. Blaming a "silver villian" is is nothing new, Herbert Hoover had similar thoughts about traders in 1929. Let's hope this crop of politicians has more courage and smarts! |
China Set For 30 More Years Of Fast Growth
A People's Bank of China economist forecasts another 30 years of fast growth for the People's Republic. To put that prospective achievement into perspective, at one-half their recent growth rate, the Chinese economy will be at least six time bigger,then. |
Truth in Accounting Panel Member to Appear on CNN
Terry Savage, nationally known expert on personal finance and a regular television commentator, will appear on CNN’s Issue #1, Friday, June 27, at 12:00 p.m. (Eastern) time. |
Energy Costs Hurting Suburban Lifestyles
Suburbs far from the cities they surround exist because families can afford more house. Now, the heating and transportation costs are bursting lifestyles |
To See Ourselves As Others See Us
The federal government isn't the only big-time debtor. Here's the St. Louis Post-Dispatch's take on its next door neigbor's problems. |
Looming Electricity Shortage
Some of the same forces that are driving oil prices are at work in the electricity markets.
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Candidates' Tax Plans
Here's a comparison between McCain and Obama's tax plans. What inquiring minds want to know is if collections rise when capital gains rates fall, what will happen when they rise? |
Chinese Subsidies Mean Drivers Pay Just $2.72 Per Gallon
The Times of India reports the Chinese Government has price controls on refiners but subsidizes their losses. This means incresed demand. Is this one of the uses for their pile of dollars? |
China Criticizes U.S. Economic Regulators
A newly self-confident People's Republic decides they have a better idea as U.S. and Chinese diplomats talk trade this week. |
Congressional Dilemma
The House passed an extension to unemployment benefits. Their dilemma is whether to be compassionate or to be prudent. They almost always choose the former which helps explain why we're $56 trillion in debt. |
Sheila Weinberg Helps The Mainstream Media
Here is one of Chicagoland's major newspaper's opinion on the national debt. Sheila gently nudges Mr. Constable about calculating the real numbers. |
At Least It's A Start
Ruth Marcus argues that we're leaving a trillion dollar debt to our grandchildren to pay for the war in Iraq. Why isn't she also concerned with the other $55 trillion we are also leaving? |
Remembering Ben Franklin's Advice
Ben Franklin valued thrift and savings but those virtues have waned during the last twenty years. David Brooks believes Franklin's advice remains good counsel despite rampant financial temptation. |
Oil Prices Expand Trade Gap
Expensive oil required Americans to ship more wealth to foreign suppliers despite solid gains in exports. |
Two Billion A Day
At $150 per barrel, American would send nearly a trillion dollars to foreign oil supliers each year. Why aren't we developing clean domestic sources? Here's one view on why that's not happening |
Not Since The Great Depression.....
Is he a Robin Hood or a scofflaw? Not since the Great Depression have sheriffs broadly refused to hold foreclosure auctions. Now the sheriff of Philadelphia County has forced an interesting solution. |
Government Isn't Helping Health Care Costs
It's inevitable; restricting supply of a product in demand will cause prices to rise. When government limits the number of health care suppliers, health care costs rise. Could capitalists be the answer? |
Governor's Right-Budget is Out of Balance
Illinois Governor Blagojevich correctly points out that the budget passed by the state legislature is out of balance. But hasn't all the budgets he has signed in the past also been out of balance? |
Senate Stalls On Fed Nominations As Dollar Wavers
The next president will appoint four Federal Reserve Governors because the U.S. Senate won't act on outstanding nominations. In the meantime, the dollar is under pressure according to this article. |
Even New Jersey Gets It
New Jersey is often accused of being the poster child for expensive state mandates, required insurance benefits and a legislature that believes it can tax its way to the good life. Sheila Weinberg is helping reality to creep in. |
Florida, Too?
Florida's economy is booming is because it has no income taxes. That attracts older folks who use the prescription drug benefit. If they were honest, wouldn't the Florida Times be calling for the repeal of this example of "failed budget policies"? |
Cap And Trade At The Gas Pump
As Congress debates |
A Cautionary Tale From Illinois
The State Of Illinois uses cash basis accounting to evade its Constitutional responsibility to operate under a balanced budget. After a while it adds up and voters may not be willing to pay. Click the link at the end and read the comments. |
A Big Reason For Higher Gas Prices
The declining dollar helps explain why oil costs more...and why that new Mercedes costs more, too. |
Actuaries Blamed For Public Pension Problems
When the New York Legislature fires its actuary, the New York Time takes notice. There seems to be enough blame for everybody. |
What Tsunami?
One financial fear for Americans is the wave of baby-boomer retirements. What if it doesn't happen that way? |
IFTA and Sheila Weinberg on Page One, Above the Fold
USA Today is the latest main stream media outlet to report the truth about US Government Debt. See the highlighted area for a quote from Sheila Weinberg, the Institute's founder. |
IFTA Founder Featured By Government Accountants
Sheila Weinberg is featured in the Association of Government Accountant's daily digest. With the USA Today article, it's a two-fer day! |
Why We Need Truth In Accounting
The story shows mainstream media is beginning to understand that government bookkeeping isn't so much about finding truth as it is about hoodwinking the public. |
What Does This Mean?
This little story reports the Fed wants to pay interest on the money it requires banks to deposit with it. Where will that money come from? One guess is from the Fed's printing presses. How does that help? |
An Interesting Viewpoint From An Unexpected Source
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Indian and American Consumption
This article tells us India is offended by rising commodity prices meeting their rising expectations. The question is, why should we pass a $300 billion farm aid bill in this environment? |
One Reason Health Care Costs Are Rising
More than half of insured Americans are taking prescription drugs for chronic medical conditions. |
Can We Afford Nukes?
Nuclear power is looking better to environmentalists and those who worry about our current accounts deficits. The question is can we afford their escalating price tags? |
Current Promises Cost All Of Us, Too
Barney Frank wants to help folks having trouble paying their mortgages by taking a couple of payments from the average homeowner. The trouble is, we'll either borrow the money or print it. This is one example of how we've built such substantial debt. |
Candidate's Health Care Plans
Health care is on nearly everyone's mind as we head towards November's election. Here's a comparison of where the candidates stand. |
American Debt Exceeds GWP
News that America's Debt now exceeds what might be called "GWP" or "Gross World Product". Take another look at the Debt Counter... |
Health Care And Entitlements
Any solution to our debt crisis must include gaining control of health care costs. End-of-life care is a large component of these costs; here's the view of some seniors in New Hampshire. |
As Usual, Crisis Means More Government
Alan Blinder recommends a "Newer" New Deal to handle the mortgage mess. Given the accounting irregularities at Freddie Mac and Sallie Mae, one wonders if that's such a good idea. |
The Basis For A Solution?
Here's a sensible first step to deal with the nation's accumulating debt. |
The Human Side Of Payments
Nearly 10% of our current account imbalance is explained by immigrants sending money to their home countries. Economic conditions have slowed the growth of these payments. |
Brian Wesbury Weighs In
On the day we expect the Fed to make an interest rate announcement, our favorite working economist offers his advice. |
Peronal Debt Keeps Growing
Government is not the only big- time debtor. Here's a recent article that provides some historical perspective on personal debt. |
Deficit Shell Game?
Concentrating on tax cuts misses the stupendous cost of nationalized health care. Are any of the candidates (or the news media) aware of the real, $55 trillion debt that already exists? |
What Would Senator Dirksen Say?
With apologies to the late Illinois senator, a hundred billion here, a hundred billion there soon adds up to a real deficit! |
Well, Duh!
The Federal Government is one of the largest purchasers of almost anything. This article reports that the government will now consider past performance of vendors. |
The Emotional Roots Of Entitlements
An economist ponders the way the media frames economic decisions in "human interest" terms and its implications. |
A Tale Of Two Standards
More on Fannie Mae and Freddie Mac: The Wall Street Journal discovers the root cause of many problems in government--no truth in accounting. |
Mortgage Time Bomb
Will Fannie Mae and Freddie Mac need a trillion-dollar bail out? S&P estimates the price tag. |
Debt Crisis And College - Part Two
Sallie Mae's liquidity crisis has parents with declining borrowing capacity looking at less expensive educational options. |
Iceland: The Canary In The Credit Coal Mine?
With interest rates at 15% to support their currency, this island nation may foretell what may be in our future. |
Sallie Mae Studies Its Situation
Student loans may be harder to find as Sallie Mae studies its situation and finds itself a victim of the debt crisis. |
McCain Reveals Some Economic Plans
John McCain chooses tax day to discuss his views on managing the economy. One wonders how he defines the "federal deficit". |
Oil Prices Reflect Newly Minted Money
Oil and other commodities reflect the depreciating dollar. |
The Private Sector Errs, Too
Notice the lightening-fast consequences of an accounting collapse in the private sector versus the continuing problem at government entities. |
Credit Crisis Not Over?
The Vice Chairman of the Federal Reserve says the crisis isn't over. How much more debt will the U.S. take on to calm the markets? |
China: Master of the Universe?
The effects of the Chinese and Indian supercycle as the Brits see it. |
What Do Congressmen Think About The Government's Books?
Jim Cooper (D.TN)thinks the feds would jail businessmen who used the same financial reporting practices the U.S. Government uses. |
A Euro Stalls, The Yuan Rises
Yesterday's opinion that the Euro is doomed contrasts sharply with the strengthening Chinese yuan. |
Is The Euro's Rise Over?
In 2003, A dollar was worth about one Euro. Now, it takes $1.57 to buy a Euro. Despite the Euro's sustained rise,this article argues the Euro is doomed because economic objectives of EU countries are diverging. |
Why America's Debt Keeps Increasing
It's hard to solve America's black hole of debt when we keep digging! |
"America For Sale"
The New York Times examines what happens when foreigners with strong currencies trade t-bills for American companies. |
Impoving Health Care Outcomes At Lower Costs
Health care expenses are becoming the most important element of entitlement programs' costs. Author Virginia Postrel reports from the patient's viewpoint on how improved asthetics might reduce costs substantially. |
The Liberal View Of International Trade
The Nation takes Hillary Clinton to task on foreign trade policies. Wonder if they remember the Smoot-Hawley Act? |
Chinese Reporting On America's Economy
China is becoming America's biggest competitor. This is what they are reading about our economy |
"We're not here to give money away!"
So says a Social Security administrator facing disability claims originating under pressure from insurance companies. |
Too Many Clients--Too Little Money
Illinois makes Medicaid patients wait in line for care and doctors wait for payment. Are there any lessons as we consider nationalizing all medicine? |
Senator Clinton Recognizes Debt Threat
Senator Clinton links U.S. debt to national security. FYI, the IFTA pegs our national obligations at more than $50 trillion. In January, the Treasury reported China held $493 billion in treasury securities, about 1% of America's total debt. |
Health Care Analysis and Solutions
Health care costs are household and state budgets' most intractable problem. Here are two views on what to do. |
Glenn Beck: The $53 trillion asteroid
Americans aren't afraid of the truth. In fact, we crave the truth only slightly more than we crave a leader who will actually give it to us. |
Passing On Problematic Promises
Social Security Trustees warn us once again--where are the candidates? |
IFTA and Northwestern's Institute for Policy Research
Here's an excellent report on the substantial issues facing state governments. The IFTA attended and Founder Sheila Weinberg appears in a picture! |
Another Promise We Can't Afford
The Pension Benefit Guarantee Corporation doesn't charge enough to perform on the promises it makes. |
Management Of A Financial Crisis
A humorous look at one approach to managing bad news. |
Ask The Man Who Hires Them
The former chairman of Lockheed-Martin casts doubt on earning our way out of debt. |
We Are Not Alone
Our British cousins are feeling the pinch, too. |
The View From LaLa Land
Joel Stein's west coast style applied to The Fed's Boss. |
Even More Public Debt?
Fannie and Freddie to the rescue with a huge plan to leverage up. |
CPA Journal Spotlights Deficits
Institute For Truth In Accounting's Weinberg And Nelson want to hear from candidates. |
Two Views
Two stories today. First is a remarkably clear-eyed view of the Bear Stearns crisis and an opinion on the morale hazards of government bail-outs. It's harder to find what effect the failure of Bear Stearns will have on the federal balance sheet. |
Lender Of Last Resort Expands Scope To Brokers
One of the the Federal Reserve's important functions is as lender of last resort to troubled, member banks. Now, it is opening the discount window to securities dealers. Is this a sign that the economy is in bigger trouble than we thought? |
In the fiscal war, AWOL candidates
Clearly, some hard fiscal decisions will have to be made. But you would never know any of this from listening to presidential campaign speeches. |
The Future Of Health Insurance?
If your employer says it is too expensive to provide health insurance for workers, how can you get coverage? |
What's Happening To The Dollar?
As the value of dollar declines, will it remain the world's trading currency? Warren Buffett said recently that “the government can talk about how it’s in our interest to have a strong dollar,” but it is not following policies that would help. |
Democrats promise a lot, but who will pay the bill?
Clinton and Obama both offer a long list of new spending proposals that suggests a lack of seriousness in confronting the nation's fiscal condition.
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Uncle Sam’s Credibility Gap on Spending
Fewer than one in 10 Americans believe their government in Washington, D.C., is open and honest how it spends their tax dollars. |
GAO's Walker Announces Early Departure
Walker to Become President and CEO of the Newly Formed Public Interest Foundation called Peter G. Peterson Foundation
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Drowning in Debt
I probably wouldn’t be sweating deficits, if I believed the public was being told the truth about our actual deficits and public debt. |
Truth in 2008 presents the Financial State of the Union
The Institute for Truth in Accounting releases its annual Financial State of the Union. |
The Savage Truth in Accounting
Chicago Sun-Times columnist highlights that the hidden costs of the national debt are more dangerous than you think |
Debt, Debt, Debt
David Houle, futurist and blogger, addresses our nation's debt problem. |
I.O.U.S.A Debuts at Sundance
A breakthrough documentary on our country's debt showed at the Sundance Film Festival this week. |
Presidential Candidates Shrink From Budget Issue
The Wall Street Journal reports that U.S. presidential hopefuls are largely ignoring serious financial issues. |
Financial Times: US At Risk
Thanks to unfunded commitments, the Financial Times reports, the US is facing an uncertain financial future. |
Top Accountant Makes 'A Call For Stewardship.'
The United States Comptroller General, David Walker, addressed the National Press Club last month. His subject: our troubling national financial situation. |
Top Economist: 'We're playing a dangerous game.'
Laurence Kotlikoff, a Boston University economist, addressed the World Accoutancy Forum last month. His speech was informative...and sobering. |
Current federal spending track called 'unsustainable'
An update from the Congressional Budget office. |
New York Times: Pension Fund Shortages Create Hard Choices
Almost half of the states have been underfunding their retirement plans for public workers and may have to choose in the years ahead between their pension obligations and other public programs, according to a comprehensive study. |
Government $45 trillion short on Social Security, Medicare
The Associated Press reports on our latest government financial data. |
Nation's Top Accountant to Discuss Federal Financial Situation on Monday
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Sheila Weinberg on First Business
Institute for Truth in Accounting Founder Sheila Weinberg talks about the true state of the national debt on First Business. |
National debt grows $1 million a minute
Like a ticking time bomb, the national debt is an explosion waiting to happen. It's expanding by about $1.4 billion a day — or nearly $1 million a minute. What's that mean to you? |
Huffington Post: The Next Inconvenient Truth
What will be the next "inconvenient truth"? One person has a compelling answer. David Walker, the Comptroller General of the United States, believes that the nation is headed for a fiscal crisis of potentially catastrophic proportions. |
McClatchyDC.com: Fiscal crisis threatens U.S. future
As presidential candidates largely ignore the issue, looming fiscal challenges threaten to swamp the U.S. economy and erode America's superpower status, several of the nation's foremost experts on the federal budget warned Wednesday. |
Christian Science Monitor: Parties divided on entitlements
As baby boomers enter the starting gate into retirement, the cost of America's entitlement programs – foremost, Social Security, Medicare, and Medicaid – is projected to balloon to levels that are unsustainable. |
UK Telegraph: China threatens 'nuclear option' of dollar sales
The Chinese government has begun a concerted campaign of economic threats against the United States, hinting that it may liquidate its vast holding of US treasuries if Washington imposes trade sanctions to force a yuan revaluation. |
The Heritage Policy Weblog: National Debt to Spiral “Out of Control”
The most recent simulation by the Government Accountability Office (GAO) paints a sobering picture of the government’s long-term finances. The GAO estimates the fiscal gap at $31 trillion to $54 trillion. |
Medicare Meltdown
What's going to happen when the money runs out for Medicare? A recently released report by the program's trustees found that within seven years Medicare taxes will fall short of Medicare expenses by more than 45%. |
San Antonio Express-News Editorial: Time is running out as entitlements grow
The White House and Congress are playing a dangerous game of chicken regarding the runaway cost of entitlement spending. |
USA Today: What's the real federal deficit?
The federal government keeps two sets of books. One the government promotes to the public has a healthier bottom line: a $318 billion deficit in 2005. The set the government doesn't talk about reports an ominous financial picture: a $760 billion deficit. |
