Thursday night, I had the opportunity to attend an accounting continuing education program presented by Joyce Barden, a professor at Keller Graduate School of Management/DeVry University. As I am not an accountant, but serve as program chair for the organization hosting this program, I had to be in attendance. The technical aspects of accounting and assurance are like a foreign language-- lots of jargon like GAAP, FASB, and IFRS and I was prepared to tune out. However, Joyce is an engaging instructor and she caught my attention when recounting her recent attendance at the AAA-American Accounting Association Meeting in NYC. She mentioned one seminar entitled, "Improving Fiscal Transparency and Making Tough Choices" presented by David Walker, CEO of the Peter G. Peterson Foundation. David Walker is the former Controller General of the GAO (US Government Accountability Office-the investigative arm of the US Congress and Congressional watchdog) and his talk was enlightening. In particular, he talked about the "4-Ds", and I thought that it was worth sharing.
1. Deficits- Grows by $3.4 Million/Minute; by $5 Billion/Day
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If we save $100 million, that is 30 minutes
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If we save $17 Billion on Fed programs=3.4 days
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GMC (Government Motors Corporation)--we own 60% of it
2. Dependency-Debt.GDP was 122% during WWII and we held 50% of Global economic power and all debt was owed to Americans. Now, 50% of our debt is held by foreign lenders. They control our purse-strings.
3. Federal "Ditch"- "hole"- our real National Debt
4. Disconnect--On the Front End=Spending
On the Back End=Foregone Revenue (Credits)
While I don't agree with everything that the Peter G. Peterson Foundation website has to say, it is sobering to break down the National Debt into minutes, hours and days. Every citizen is on the hook for over $184,000 and that is growing by the second. With all the hoopla about Obama proposing to socialize our healthcare, it is an often overlooked fact that Medicare is the largest entitlement program and Social Security is the largest Ponzi scheme. A year ago, on September 30, 2008 our National Debt was $56.4 Trillion dollars. It is estimated to be $62 Trillion by the end of September 2009, which probably won't be disclosed since the government's accounting is done on a cash basis! Meantime, ol' Tim Geithner is printing up money around the clock. I am really scared by the push to add government-run healthcare to the list of entitlement programs. Americans have been so brainwashed to live for today and file bankruptcy tomorrow. Our country is one step away from bankruptcy. We need an intervention. We need real reform, not more entitlements.
In particular, he talked about the "4-Ds", and I thought that it was worth sharing.
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