News America is facing a financial time bomb, and the clock is winding down.  Truth in 2010 is dedicated to spreading the word, and in the process, we're collecting the latest news on our troubling financial situation.  Have an article or study we haven't seen?  Send it our way at info@truthin2010.org. States Double Down On Pension Funds 3/9/2010 Worried about funding shortfalls, states are increasing pension fund investment risks. Having ignored their fiduciary obligations for years, this strategy reminds one of an embezzler, about to be caught, taking big chances to put the money back. Schools Going To Four Days? 3/8/2010 The USPS is trying to drop Saturday deliveries to save cash. Now, some schools are going to four day weeks. Have public institutions just become too expensive? The unfunded costs at the state level are almost entirely due to employee costs and pensions. At first, slowly, then quickly... 3/7/2010 NIALL FERGUSON suggests imperial collapse may come much more suddenly than many historians imagine. A combination of fiscal deficits and military overstretch suggests that the United States may be the next empire on the precipice. Rep. Tryon Introduces the Truth In Budgeting Bill 3/6/2010 Here's some great news from one of the Institute's friends, Illinois State Rep. Mike Tryon on the Truth in Bugeting Bill. With the Institute's help, Florida legislators are introducing their own version. Hat Tip to The Illinois Observer! Congressman Ryan on Health Care 3/4/2010 Wisconsin representative Paul Ryan hits it exactly right asking how we will pay for the nation's existing entitlements let alone new ones. Our debt clock, nearby, shows the problem. China Debates Its Economic Policy 3/2/2010 China is debating its economic model and it appears that we can learn something from the world's most dynamic economy. This China Daily editorial's first sentence directly contradicts current U.S. policy. Assumptions Make The Difference 3/1/2010 Showing just how much the assumptions matter, CalPERS, the California agency that is one of the largest pension administrators, is considering reducing its earning assumptions. If it does, the amount California taxpayers will have to kick in, skyrockets. California A Bigger Risk Than Greece? 2/28/2010 Banker Jamie Dimon makes the case that California presents a bigger risk to investors than Greece. Combine his opinion with the data from the recent Pew Center for the States and the perception of financial danger rises exponentially. The Arrchitect of Social Security 2/27/2010 If you have ever wondered why the Social Security retirement age was set at 65, read on. The Robert J. Meyers, who made the policy has died, after having been eligible for 32 years of Social Security benefits. Meyers was one of the last New Dealers. Banks As Casinos 2/25/2010 Greece's financial crisis is in full bloom. Banks who once helped hide Greece's fiscal problems have switched sides and are now rooting for default. Has Greece--and its creditors been set up to fail by the bankers? 'Blatantly Dishonest Accounting' 2/24/2010 Them's fightin' words for the Institute. On the eve of the health care summit, IBD states the obvious: ten years' of taxes for five years of benefits violates the most basic accounting principle of matching revenues with expenses. Try that with the SEC! Soros on the Euro Crisis 2/22/2010 The situation in Greece and the Euro is having a negative effect on American markets and the dollar. George Soros says the basis for the euro is "patently flawed". Should we expect him to try to break the euro? Governors Say States' Prospects Dim 2/21/2010 The economy is pressing the states' fiscal conditions and the governors do not see recovery as fast as the general economy. They are wary of health care mandates and the local tax increases that will be required to fund them. Interest Rates Headed Higher 2/20/2010 This article shows why economists often say 'but on the other hand...'. What it misses, however, is that our foreign creditors are not happy with the amount of U.S. debt outstanding. Keeping them invested in treasuries will propel rates upward, faster. China Losing Appetite For U.S. Debt 2/19/2010 Hard on the heels of news that Social Security has just become a net cost to the government, China is beginning to let U.S. debt roll off. With these two sources of federal funding drying up, where will the money to finance U.S. debt come from? This Wasn't Supposed To Happen Yet 2/18/2010 Social Security has now gone into the red. According to this blog, the system now pays out more than it is taking in. This tipping point comes much earlier that the government previously reported. Social Security is now a net loser for the Treasury. The Banks Have Mostly Repaid 2/17/2010 Now that most of the banks have repaid their bailouts at a profit to the government, one wonders how much trouble they were in in the first place. Chasing The Fed 2/15/2010 Here at the Institute, we're concerned with transparency in government. Here's the story of one reporter's battle to find out what's happening at the Fed. It shows how bureaucrats regularly ignore Freedom of Information Act (FOIA) requests. Is Wall Street A Little 'Greecey' 2/14/2010 In every crisis, one finds winners and losers. In the Greek melt-down, we find U.S. bail-out winner, Goldman Sachs, at the center of controversy, once again. Is Obama Walking Back His Tax Pledge? 2/11/2010 While campaigning, the president repeatedly promised no new taxes for those making less than $250K. Now in the big chair, he's become The Truth About Deficits. 2/10/2010 Newsweek's Evan Thomas writes about Obama'a 'other deficit' and advises telling the truth about deficits. Thomas might want to take a look at the real debt clock, shown above, and recommend telling the whole truth. Unlimited Guarantees Get Used 2/9/2010 The unlimited guarantees are supporting the two government sponsored entities. There is no evident exit strategy. What Does The Secretary Know That We Don't 2/8/2010 Treasury Secretary Geithner's prediction that our bond rating will remain AAA is based on...what? The warning from Moody's is bad enough, contradicting the ratings agency seems foolhardy. The Corrosivity Of Debt 2/7/2010 The Greeks are attracting blame for threatening the Euro after revealing their annual deficit will be 12% of GDP, not the 4% previously reported. Wait! Isn't that about the same thing we're doing here? 51% of Greece's budget are public wages and pensions. Employment Picture 'Murky' 2/5/2010 There were 20,000 fewer jobs available in January yet unemployment went down to 9.7%. This mathematical curiosity is actually signaling that many workers have not only exhausted unemployment benefits but, just as importantly, their hope of finding work. Accounting Problems In Unemployment Numbers? 2/4/2010 The Labor Department needs to tell us the truth about unemployment numbers. Their accounting seems to be based on an active imagination, pulling numbers out of their hat,according to this article. The Cost of Debt 2/3/2010 Heather Wilhelm, one of our favorite commentators, on David Walker, the crush of debt facing the U.S. and the president's budget. Extreme Budget Proposal 2/2/2010 The president's proposed budget is fully one-quarter of GDP or 22% more than the 40 year average. If classic pump priming works, we should soon enjoy a roaring economy. If not, our kids will pay. $3.8 Trillion Budget Proposed 2/1/2010 The Administration has proposed a budget that spends $1.6 Trillion more than it receives in revenues. If that's not bad enough, the Feds are busy running up unfunded liabilities for entitlements. Unbalanced 1/31/2010 How can you determine if your government's budget is truly balanced? Hints Of The President's Budget 1/31/2010 The president announced spending freezes at the State of the Union address but are they meaningful? By exempting entitlements, the major source of our mushrooming debt remains unchecked. Sheila Interviewed By NOCW 1/30/2010 Sheila Weinberg discusses the concerns of the Institute during an interview by NOCW. Intergenerational Equity 1/29/2010 The best reason to eschew debt is to avoid making our chldren pay our bills. Here's a neat explanation of governments' burden in terms of generational accounting. Spending Ratchet Only Goes One Way 1/28/2010 The president's plan to freeze some spending deserves a closer look. Having substantially raised spending on purposes that aren't recession-related, he proposes to now freeze them at their new, higher levels. US debt will surely increase, as a result. Organized Entitlements 1/27/2010 Open-ended entitlements for individuals or government sponsored entities go a long way to explain why the US has $74 trillion in obligations. Here's the story on Fannie Mae which now enjoys the unlimited support of the Treasury...which means taxpayers. Fed To Change Interest Rate Benchmark? 1/26/2010 Apparently unable to control the Federal Funds rate as a consequence of the huge amount of cash that's been injected into the US economy, the Fed is considering a new benchmark. What happened to the notion of Just The Facts 1/25/2010 Congress will raise the debt limit soon because it is running out of authority to borrow. Here's a very simplified list of debts "subject to the limit". Shouldn't all U.S. debt be subject to the debt limit? How Is This Bipartisan? 1/25/2010 Aerica's debt problem is one we must face immediately and a commission to develop a strategy is a good idea. To gain widspread support however, it must include views from both parties. This story reports the idea is becoming a unipartisan initiative. Is The US Economy Doomed? 1/24/2010 Two professors offer 20 reasons why the US economy will not recover shortly...if ever. They blame debt and provide easily understood evidence that a depression is on its way. Organized Labor Reaches A Major Milestone 1/23/2010 Union members are more likely to be employed by a government entity than by a private one for the first time in U.S. history. Public sector unions have certainly lifted wages and benefits for their members as many governors are discovering. China Says It Has Recovered 1/22/2010 As Americans worry about a double-dip recession, our Chinese rivals say they have recovered. They are now more concerned with inflation,a problem the American economy will surely face when we turn the corner. This may be a glimpse of our future. Debt Limit To Rise 1/21/2010 Congress will soon raise the debt limit by about 10% to more than $14.3 Trillion. Why isn't there a limit on the size of unfunded liabilities? Perhaps more honest accounting would help. Partisan Deficit Commission Agreed 1/20/2010 With all the hoopla over the Massachusetts election, you may have missed the agreement between congressional Democrats and the White House to create a "Deficit Commission". Regular Visitors Will Notice... 1/18/2010 If you are a regular visitor to our site, you will notice that we've changed the welcoming video. It dramatizes the question of making decisions with all the facts, a practice we should ask our leaders to always take. Watch it all for other new clips! China Attracts Investors 1/17/2010 China's Foreign Direct Investment has doubled recently showing the Middle Kingdom is attractive to investors seeking their fortunes. Chinese leaders say this shows the country is well onto recovery. US Still Leads In Science But.... 1/16/2010 The US still leads in science but, measured by the nationality of PhD graduates, we are training the rest of the world. In addition to debt and trade gaps, do we have a PhD gap and if so, what will it take to keep these bright scholars productive here? The Monopoly Game As An Economic Metaphor 1/15/2010 Amity Shlaes from the Council on Foreign Relations looks to culture and markets to explain our economic prospects. Taxing Big Banks 1/14/2010 The administration announces plans to tax big banks to recover the money spent to bail out the financial sector. Recession Redux 1/12/2010 Do tax cuts and smaller government work to end recessions? Two of our favorite commentors say we are in the same position as we were in 1981, just before the Reagan cuts. Now, we're trying the opposite strategy; what will happen? Bailout's Costs Told 1/11/2010 The 'profits'from bank bailouts are being offset by AIG, automakers and bad real estate loans. Win some, lose some... from Reuters. California First To Seek Fed Bail-Out? 1/9/2010 The states are beginning to line up outside Congress' door. California is the most obvious but Illinois, New York and Arizona may soon follow. Shouldn't all states get in line now to protect their taxpayers from funding other states deficits? Washington Office Space Pricing Predicts More Bureaucrats 1/8/2010 Many observers believe that bad commercial real estate loans will be the next heartburn for banks. Not so for D.C. properties....prices and occupancy rates for office buildings are up. Investors seem to be predicting a more expensive government. NY Governor Takes Representatives to the Woodshed 1/7/2010 We believe 2010 will be the year that states replace banks as the organizations with most pressing financial problems. New York is a good example of the looming problem and Gov. Paterson observed that other states have similar problems. The Power of Compounding Growth 1/5/2010 Try this. Sit down with a calculator and punch in a 5% growth rate. Multiply 1 by 1.05 then that answer by 1.05. Do it ten times. Then try the same process with 1.07. Quite a difference! Here's an article that re-evaluates 'the aught's' growth. For Once, Illinois Leads The Nation 1/4/2010 As an Illinois-based organization, we are always interested in local developments. In this story, Illinois shows the way...to bankruptcy through politics? Some Good News--Savings Rate Up 1/3/2010 Americans are saving more and if the family in this story is any indication, we are changing our consumption patterns. That's good news for a nation drowning in private and public debt. When Entitlements Run Out Of Money 1/2/2010 The Mayo Clinic has stopped taking national health care, that is Medicare, patients at its location in Phoenix because the government doesn't cover the direct costs of providing health care. Little wonder--Medicare is $38 Trillion in the hole. Bankrupt Bookends 1/1/2010 New York State's general Fund ended in the red for the first time in history. Now the state's anchoring the Atlantic and the Pacific are essentially bankrupt. These,and other states with similar troubles, will be the story of 2010. Another GMAC Rescue--The Perfect Coda For 2009 12/31/2009 The Treasury has injected another $3.8 Billion in exchange for majority control. It's a consequence of failing to raise $9.1 in new equity after this fall's stress tests of troubled financial institutions. Is this more deficits for our kids to bear? The Ghost Of Financial Crises Yet To Come? 12/30/2009 With apologies to Charles Dickens, are state and municipal financial troubles in our future? Can they be avoided like Scrooge avoided his by governments and public employee unions changing their ways? Accounting Problems With Health Care Bills? 12/29/2009 The Congressional Budget Office says the health care legislation passed by the Senate double counts savings. The trouble seems to be the government is able to choose situational accounting rules. Goldman Sachs On The Dole...Again? 12/28/2009 Another example of the premiere banking firm's firm control of government. This time it's tax- free bonds to build a new HQ building near "Ground Zero". Interestingly, The New York Times reports Goldman's name will not adorn the structure. 'Shovel Ready' Not The Answer? 12/27/2009 Hedge fund manager Andy Kessler's different view on how to spend--or maybe invest--in our future. Fannie and Freddie Covered For Unlimited Losses 12/26/2009 Fresh from raising salaries at these government owned entities, the Treasury announces unlimited bailouts. Are the TARP funds returned by banks facing salary caps financing this? Season's Greeings From The Institute 12/25/2009 During this season for giving, we are thankful for the gifts we have received from our visitors, volunteers and contributors. Thank you for your attention, time and the resources that are propelling the Institute into a new force for truth. No Pay Czar at Fannie or Freddie 12/24/2009 Fannie and Freddie disclosed they have raised their CEO's pay packages. How are they different than the private companies who have to deal with the Pay Czar? Maybe if these two had pay restrictions, they would pay back the taxpayer's bailouts, too. End Of Life Care 12/23/2009 America's debt crisis is largely due to entitlements. Medicare is the largest of these and among its largest costs are caring for very elderly and terminal patients with only days or months to live. How China Sees Copenhagen 12/22/2009 A face-saving article on China's role at Copenhagen. This article suggests western media didn't do the job it's expected to do. In the long-run, did China act rationally and do the planet a favor? Better News On Mortgage Workouts 12/21/2009 The key seems to be reducing payments by at least 20%. Better asset performance should help TARP recipients survive--and pay down the debts they owe US taxpayers. From Copenhagen 12/20/2009 The meeting ended on Friday in chaos. Here's what the conferees did manage to agree on. Federal Transparency Coming 12/19/2009 Steve Cook, a CPA in Texas reports that the FASAB has issued requirements that the Federal Government report its financial condition truthfully. Debt Keeps Piling Up 12/17/2009 The Federal Government is out of control when it comes to spending. They seem to be spending in the same way one would just before declaring bankruptcy. Dealership Ressurections 12/16/2009 GM and Chrysler tried to reduce their dealer network for years only to be stymied by state politicians. The bankruptcy and takeover by the feds allowed the companies to downsize their networks. Now, federal politicians are resuscitating closed dealers. One Study Confirms Health Care Reform Costs 12/15/2009 Here's the Lewin Group's analysis of the plan passed by the House and the plan on which the Senate will soon approve. From the Peterson Foundation. Climate Reparations 12/14/2009 Poor countries are pushing the concept of climate reparations under which developed countries owe the undeveloped world very large payments. This may explain the third world's appearance in Copenhagen...and why they walked out momentarily. China's Economy Coming Back To Life 12/13/2009 The Chinese are enjoying a surging economy. The fact that imports are up is good news for the rest of the world but, what are they importing? One answer is western car companies--like Hummer and SAAB--a bigger version of 'cash for clunkers'. Medical Care and Technology 12/12/2009 One enduring theme in the health care debate is digitization and here's a story about one entrepreneur on the front line of electronic medical records. He offers insight and wisdom we should consider as health care is reformed. Trade Deficit Narrows...Slightly 12/10/2009 Each year, Americans export about 1-1.5% of the country's wealth to those countries willing to make products and services for us. The weaker dollar is improving exporters' prospects but overall, our trade position is dismal. Then, there's the debt.... Should Public Employees Contribute to Their Pensions? 12/8/2009 The pension and other post-employment benefits promised to public employees are sinking many jurisdictions. Should employees help fund their own pensions? The comments this article received are well worth reading. Good News On Bailouts? 12/7/2009 The Treasury now says it will lose $42 billion on the $370 spent on bailouts. On the other hand, new loans may lose $100 billion. At best, that's an 11% loss. By the way, Kuwait announced it's made a 37% profit on its Citibank rescue. James Grant Has His Say 12/6/2009 One of the best on the dollar's situation with an excellent historical seasoning. Just the thing for a Sunday afternoon. Prudence or Politics? 12/5/2009 Is Illinois Comptroller Hynes acting prudently or politically in denying permission for the governor to borrow another $500 million? This is a decision that will be coming to many states. 'Until There Is More Clarity' 12/3/2009 White House job summiteers should tell the president that they hire when doing so will create profits. With Cap&Trade, Health Reform and Card Check costs looming and anti-business rhetoric foreshadowing more employment costs, new hires will stay rare. In Defense of The Federal Reserve 12/2/2009 The economic meltdown has put extraordinary demands on the Fed. Some see this is as mission expansion and that demands an audit of the Fed's activities. Here's an alternative view from Forbes. Accounting Aspects of Climate Change 11/30/2009 The science behind climate change is basically an accounting task. Each day is an individual transaction and the recording of its temperature aggregates into trends. Now, when scientists want to audit the data, it's not available. A big red flag. The Debt Argument 11/29/2009 While The Institute consistently warns about our debt, others believe it doesn't matter as much as we think. One of these is Paul Krugman and here's a revealing exchange from The Atlantic. What Happens When Too Much Is Spent 11/28/2009 The equivalent of printing money in the Mideast is to pump more oil but even that has its limits as Dubai--and world markets--are discovering. From the Canadian Broadcasting Company 'Balanced Budgets' Running Out Of Cash 11/27/2009 A state's resources are not infinite. After exhausting every possible budget trick to spend more, eventually, states simply run out of cash. That appears to be the case in New York State which figures it has only $36 million on hand. Accounting Gimmicks Used to Justify Health Care Bill 11/24/2009 The accounting used by the supporters of health care 'reform' to estimate costs are shown to be untruthful in this article. Mark Twain had a great description of what's what's exposed here. Is The Punchbowl Running Dry? 11/23/2009 One Federal Reserve chief described responsible economic behavior as removing the punchbowl just as the party gets going. Low interest rates may be the punch that's being removed. New Stimulus Plan Gaining Traction 11/21/2009 The New York Times reports that 'liberal' economists are reaching consensus on another stimulus plan. Perhaps they will tell us why the first one didn't work, before planning a new one. Tax More...Get More Of IT? 11/18/2009 Regulators want to raise taxes to get greater penetration of information technologies and broadband. How does that work? Chinese Believe US is Inflating Its Currrency 11/17/2009 As president Obama visits, Chinese bankers explicitly accuse the U.S. of inflating its way out of its debt. TARP Debtors Miss Payments 11/16/2009 A report on the fate of TARP bailouts from The Huffington Post. The President Visits The Bankers 11/15/2009 President Obama is likely to be interrogated like a failing debtor by America's largest creditor. China Stories 11/14/2009 American purchases from China have helped make them an emerging power and the U.S. a debtor nation. In posts today, a look a both factors. Debt Reduces Options 11/13/2009 As any homeowner with too many obligations knows, debt reduces options. The same is true for nations. Pew Lists States In Trouble 11/12/2009 A list of the disaster states in the most trouble from The Pew Charitable Trust. Borrowing Binges Catching Up 11/11/2009 Given the states' precarious financial positions, many observers wonder why the credit markets are still so easily accessible for the states. That may be changing as California is beginning to discover. Controversy Over A Fed Audit 11/10/2009 The recent actions of the Fed mystify many and the remedy, in their view, is an audit. Every other bank is audited but the Fed is resisting. Here's an academic rationale for the Fed's reticence. Another Reason For The Meltdown? 11/8/2009 Depending on one's perspective, there is plenty of blame for the meltdown. From Forbes, here's an opinion that holds technology was just as much to blame as greed, over-regulation or the CRA. Another Budget Commission 11/7/2009 As part of raising the authorization to raise federal debt, some legislators are proposing a new blue ribbon commission on debt. Here are Bruce Bartlett's observations from Forbes. Lower Cost For Climate Change Fight? 11/6/2009 Private sector proponents of climate change agreements stand to profit handsomely if Copenhagen results in a binding agreement. Would they be so interested if the spending wasn't with them? Here's one individual's fight to use public domain tech. Accounting for Jobs 11/5/2009 Once, at the Road America race track, the extremely rare and exotically expensive McLaren race car was honored. One wag observed that 'all 11 of the eight ever built are here.' Is the same accounting technique in play when counting stimulus jobs? Tom Sowell On Health Care 11/4/2009 The sixth installment of the series. Withholding Scam In California? 11/4/2009 California has a clever idea--increase withholding amounts but not the underlying taxes. How long until other states adopt this imaginative technique and if the legislatures spend the money, are their budgets still balanced? Thomas Sowell on Health Care 11/3/2009 Part Five in the ongoing series from Investor's Business Daily. Migration In America 11/3/2009 Where are the hip places to move? If it's for economic opportunity--the primary reason to pull up stakes--the answers are suprising. From Forbes, an assessment of our internal ebb and flow. This has huge implications for state finances. Does Washington Know What It's Doing? 11/2/2009 Federal Reserve Chairman Bernanke comes under attack for fundamental misjudgments in Forbes. CitiBank Bailouts 11/1/2009 Assessing the nation's total liabilities is made more difficult by unforeseeable events. Given the regularity of some bank's failures, perhaps we should explicitly recognize some provision for future financial melt-downs. Thomas Sowell On Health Care: Part Four 10/31/2009 The next installment... Cash For Clunkers Adds To The Deficit? 10/31/2009 The popular program certainly jazzed GDP but some believe it simply subsidized sales that would have occured anyway. If so, we paid--or our children will pay--$24,000 per sale the program created according to one source. The White House disagrees. Tom Sowell On Health Care 10/30/2009 Part Three of the economist's views on the realities of health care. GDP Resumes Growth 10/29/2009 US GDP grew at a 3.5% clip in the Third Quarter signalling an end to the recession. But many wonder when jobs will also resume growth. Sowell On Health Care 10/29/2009 Our link to Part Two of Thomas Sowell's thoughts on health care. From Investor's Business Daily Getting Beyond Stage One 10/28/2009 Thomas Sowell, once a Marxist, has written a new book which includes a chapter on medical economics. Investor's Business Daily is serializing it over the next several days and here's part one. We'll link subsequent parts as they appear. The Case For A Second Stimulus 10/27/2009 Politicians tell us the original stimulus plan was back-end loaded because 2010 is an election year. 'Just wait' they say but that hasn't stopped some from agitating for a second stimulus plan, now. Here's their case from The New York Times. The Shape of Things To Come 10/26/2009 Illinois State AFP Director Joe Calomino appears in The Chicago Daily Observer and points to a problem that is coming to most states. Dollar Dumping Difficulties 10/25/2009 The advocates of dumping the dollar have great conflicts that make it difficult for them. Irwin Stelzer explains. Does Congress Get It? 10/23/2009 Federal spending is creating new debt that is bumping up against the debt limit. The problem is that Congress only limits a small part of the nation's obligations. The real number is in the upper right corner of this web page. Support For An Audit Of The Fed Grows 10/22/2009 The Federal Reserve has not been audited, an essential function of proper accounting. Support for an audit is growing in Congress and the Institute agrees that one should be conducted now. Paul Volker: Too Big To Fail? 10/21/2009 Paul Volker's financial acumen collides with The White House's vast banking experience. Estimates Are Almost Always Low 10/20/2009 Over the years, initial estimates of the costs of entitlements are almost universally underestimated. We published a similar study--with similar findings--more than a month ago. One exception to this iron rule is the prescription drug benefit. Wait Until We Have To Pay It Back 10/17/2009 Monetization looks ever more likely as the deficit comes in at $1.4 Trillion. On The Dollar: 10/16/2009 We've worried about the dollar for a long time but, from The Economist,here's some alternative views. Wisdom on Inflation 10/15/2009 An erudite article from The City Journal that confronts inflation on a moral plane. Long, but worth the read. Dollar No Longer A Store Of value? 10/14/2009 Some thoughts on the declining dollar. Bail Outs For OPEC? 10/13/2009 The Saudis want compensation for lost revenues due to climate change treaties. Trouble For State Pensions 10/12/2009 According to this analysis, state pension funds will be at 50% funding within a decade. The data we've seen agrees and maybe, sooner. So much for rosy predictions. Bank Failures Hit 100 in 2009 10/11/2009 The FCIC has taken over its 100th failed bank this year. This is the flip side of banks 'too big to fail' and the costs threaten the FDIC's solvency. Trade Imbalance Improves 10/10/2009 America's trade deficits have improved. That's good news but the underlying reason is not that we are exporting more, it's that the financial melt-down is forcing us to consume less. Truth in Accounting 2009 Fall Newsletter 10/9/2009 Eventful Summer Leads to Busy Fall Plot Against The Dollar? 10/9/2009 The UK Telegraph reports a 'plot' against the dollar. Why is there so much news about the dollar in the foreign press and so little in our domestic news? Dollar in Freefall? 10/8/2009 One of the Institute's main concerns is the value of the dollar. This Wall Street Journal article shows why. New DC Hiring Scheme Coming? 10/7/2009 The federal government may be spending more to subsidize moribund hiring. Maybe it should investigate why it's so expensive for small business to hire new workers first. Oil Producers Plotting Against Dollar? 10/6/2009 The British press is reporting that the oil states, including Brazil and Russia, are working to replace the dollar in oil transactions. These reports are becoming too prevalent to be ignored and presage an economic disaster for the U.S. Quick Check On Federal Spending 10/5/2009 When asked how much we spend on defense, many people think about half of our budget goes into that category. Actually, it's just 13%. If you want a quick look at where the other 87% goes, here's the data. California: A Failed State? 10/4/2009 We keep an eye on California because it is the canary in the coal mine. It is also the state that reported a good financial condition just two years ago. One wonders just how truthful those reports were. Problems Emerge As Communist China Reaches 60 10/3/2009 The perception of the Chinese economy may be different than the reality, according to this analyis from The Far East Economic Review. Repatriating American Manufacturing 10/2/2009 From an unusual source Kid's Today magazine, the story of one company bringing manufacturing back from China and Vietnam. The reasons cited are qualitative rather than cost. New Year's In Washington 10/1/2009 Today is the first day of fiscal 2010. While the economy is in tatters, how much is Congress spending on its own operations? Here's an interesting report that shows our legislators continue to grow government at a level far beyond that of the economy's. State Tax Revenues Tumble 9/30/2009 The lights are on in state capitols as legislators invent new entitlements. This, despite the fact that 49 states are struggling with substantially lower revenues. Only one state had increased revenues--any guess which one? Volker's Pessimistic View 9/29/2009 Paul Volker, the Fed Chief who whipped inflation, offers a dark view of the economy and of America, generally. Transparency Heros 9/28/2009 The Los Angeles Times salutes several transparency heros. This is a clip and save list. Banks Set To Report Huge Losses 9/26/2009 Large banks are likely to book losses that are much higher than ever before. It's tough to pay back the TARP loans when operations lose these staggering amounts. Guaranteed Public Pensions Better Than 40(k)s 9/24/2009 Market Watch distinguishes between private and public pensions. Where Does The Money Go? 9/23/2009 According to this article, Americans believe that half the money that flows to the government goes...where? Option Arms In Trouble 9/23/2009 As if the financial meltdown wasn't enough, Option Arm mortgages are about to reset, adding pressure to the already battered residential mortgage markets. Fixing Health Care with Common Sense Technology 9/21/2009 'Electronic medical records' is a big part of health care reform. Here's an article from Baseline, a web site for IT professionals, that illustrates the opportunity to improve medical care with technology. Maybe we should try this, first. One Analyst's View on the Dollar 9/19/2009 With rumors that BRIC countries will move to replace the dollar as the world's reserve currency in October, here's an emerging markets' expert opinion on why. Affordability of the Senate Health Legislation 9/18/2009 A good analysis of the competing interests in the Senate Finance Committee's bill. From the The Washington Post. Senate Finance Committee's Plan 9/16/2009 The first story on the last prescription for the entitlement plan. From The New York Times. U.S. Credit Shrinking 9/15/2009 Critics of the Federal Reserve will ask for an audit of the bank at a rally today. It will occur at 2:30 at State and Van Buren in Chicago. Sheila Weinberg has been asked to speak at the event. Reluctant Sharehholder? 9/14/2009 The notion that the financial industry must be much more regulated or it will be nationalized is the elixer the president will prescribe for Wall Street, today. Demicrats Warn They Will Move on Health Care 9/13/2009 Democrats say they will move on health care--the largest entitlement ever--with or without Republicans. Cap and Trade II? 9/12/2009 With all the contention over the health care debate, it's easy to forget Cap-and-Trade looms. Senate Republicans have 'disengaged' on the current version according to The Economist this may lead to Cap-and-Trade II. "Exotic Mortgages" Coming Due 9/11/2009 The effects of the real estate collapse may not be over, despite encouraging signs in the resale market. Krugman Blames The Economists 9/9/2009 Evidence that the recovery will be slow coming as the current 'conventional wisdom' may be the same as it was in 1932. UN Recommends Dumping The Dollar 9/8/2009 With gold hitting $1,000 and oil rising above $70, confidence in the dollar is falling. Other nations are now agreeing with China that the dollar should be replaced with a synthetic currency. China Still Worried About US Printing Money 9/7/2009 The Fed is printing money to buy Treasury bonds. This is alaming to the nation's biggest creditors, including China. Mitch Daniels on State's Plight 9/6/2009 Yesterday, we presented a national view of America's financial situation from David Walker. Today, Gov. Mitch Daniels of Indiana looks at the states. Bankruptcy Judge Voids Municipal Labor Contract 9/4/2009 Vallejo Califonia's contract with the electrical workers union has been voided in the bankruptcy court. With this precedent, will other hard-pressed cities now start considering filing Chapter 9s? Study: Europeans More Innovative Drug Developers 9/3/2009 Drugs make up a large portion of the nation's medical costs. Other nations control prices and, in many cases, are the only purchasers. Does the ability to charge higher prices lead to more and better drug development in the US? FDIC Bailout Coming? 9/2/2009 The residual problems from the banking crisis have yet to be seen according to this opinion. Doomed To Repeat It? 8/31/2009 Wise men and women tell us that past is prologue. The administration recognizes that it's 1937, not 1929, that it should study. Rampant Consumerism A Victim Of The Recession? 8/28/2009 The New York Times reports that Americans may be changing their spending habits. This will certainly have an effect on the recovery which are usually led by consumers. Checking Up On The Banks 8/27/2009 With news the FDIC is running out of money, what is the status of banks "in trouble"? From the The Wall Street Jounal Bailing Sub-Prime Lenders 8/26/2009 A watchdog group concludes that the "Making Home Affordable" money is going to the very lenders who created the real estate crisis. On the other hand, aren't these institutions' customers the people who need the help? Looking Ahead To The Census 8/25/2009 Next year's census promises some good news for the Sunbelt and bad news for the Rustbelt. Social Security Payments: The Uncola 8/24/2009 There will be no Cost of Living Adjustment in Social Security payments for the first time since they became automatic in the inflation-plagued 1970's. Worse, the bureaucrats have figured out how to actually decrease some folks' benefits. Luke-Warm News On The Deficit 8/20/2009 The FY 2009 Deficit won't be as big as was once thought. That means it's bigger than any deficit, by any measure, since World War II. Buffet Worried About Stimulus Spending 8/19/2009 One of the president's biggest supporters worries about the scale of fiscal stimulus saying we are in 'uncharted territory'. Perhaps he should visit this site where we chart the deficit. California Public Pensions "Unsustainable" 8/18/2009 In a remarkably pointed article, San Diego's Union Tribune faces facts over California's state pension costs. They are unsustainable and the current systems "has to die". Look for others to follow The Golden State's lead as fiscal reality hits. What's A Proper U.S. Balance Sheet? 8/17/2009 The federal take-over of Fannie Mae and Freddie Mac exposes taxpayers to foreseeable losses. These "assets" should appear on the federal balance sheet---along with their liabilities. Here's a Wall Street Journal article on the subject. Whole Foods CEO's Suggestion 8/17/2009 Here's health care advice from a "progressive" CEO of Whole Foods Markets who seems to have a much less intrusive idea for improving access to health care. IFTA in the News 8/16/2009 Here are three recent stories featuring Sheila Weinberg and The IFTA. These stories show the people are beginning to understand the scale of Illinois' fiscal challenges--even if their leaders choose to ignore them. Unintended Consequences 8/15/2009 The government's announcement that it will produce a 230 MPG vehicle at its GM investment is good news. But, what are the consequences and will it actually reduce total emissions? Troubled Banks Still A Concern 8/14/2009 Bloomberg has an excellent overview on conditions in some 150 banks that are not "too big to fail". The trouble is almost exclusively due to soured real estate loans and credit card losses. Is Ginnie Mae The Next Problem? 8/12/2009 History shows that finanacial institutions with quickly growing assets often find themselves in trouble. Ginnie Mae has quadrupled its assets in less than three years. Is this growth a warning sign? Market Test For Treasury Securities 8/11/2009 Many wonder what will happen if the U.S.'s creditors stop buying our debt. The Financial Times reports an important test of buyers' sentiment occurs this week as the Treasury plans a $75 Billion auction. Martin Feldstein On Foreclosures 8/8/2009 With all the hulabaloo over the health care meetings, we need to remember the real estate crisis has far larger implications, immediately. The Harvard professor suggests a full recourse mortgage as solution to the real estate problem. Clunkers Traded For Fuelish Trucks? 8/7/2009 Here's another example of why truthful accounting--accurate and timely--is important when making policy. Congress added $2 billion to the Clunkers program yesterday. But are the subsidized buyers buying fuel-efficient cars? Apparently not so much. IFTA Volunteer Appears in 'The Illinois Review' 8/5/2009 Nancy R. Mathieson, a new volunteer at the Institute, makes an important point about the original errors in estimating Medicare's costs. They underestimated by a factor of 10. That's an important lesson as we consider health care 'reform'. Federalizing State Deficits? 8/4/2009 The New York Times recommends the federal government become involved in curing state budget shortfalls. The Institute's 50 State study revealed state "balanced budgets" are a myth. Fix the accounting first and fiscal problems will diminish. Nettlesome Problem for the Pay Czar 8/2/2009 Bailed-out Citigroup owes one of its associates a $100 million bonus earned under contract for his role in last year's oil bubble. Will the "pay czar" allow the oil trader to get his gold? Health Care Seen As Others See Us 8/1/2009 A dispassionate view comes from The Economist, reporting on the dynamics of the health care debate. The polls quoted in the article show that the public sees the issue quite differently than the Congress and the President. America's "Lost Decade"? 7/31/2009 Irwin Stelzer has some thoughts on the possibility America will suffer a 'Lost Decade' like the Japanese economy did after its credit crisis. Arizona Capitol Building For Sale? 7/30/2009 Arizona is in such dire fiscal condition that it's considering selling its capitol building. One commentor on this story calls the plan 'payday loans for government'! The IFTA's 50 state study found bad accounting to be a big reason for such troubles. Dollar's Troubles Have Consequences 7/29/2009 As other countries' stimulus plans succeed, they have less use for the "safety" of the dollar, according to Bloomberg. As its price falls, other economies want a say in international finance which is dollar-denominated Two related stories, today. Mark-to-Market...Again 7/28/2009 Brian Wesbury and Robert Stein make a powerful case to suspend the "Mark-to-Market" accounting principle, completely. Many believe this policy was a primary contributor to the financial meltdown. Ben Bernanke On The Barnstorming Trail 7/27/2009 The Fed Chairman is usually a mysterious, silent oracle but Bernanke is out developing public confidence by explaining the bank's role. Private sector executives build confidence with audits, not interviews. Bernanke should order an audit, too. A Liberal View On Financial Regulation 7/26/2009 Three distinguished observers recommend concentrating the regulation of financial institutions' capital adequacy powers in the Federal Reseve. Didn't the biggest players all become bank holding companies recently? Don't banks own the Fed? Truthful Numbers 7/25/2009 The Chicago Tribune's Dennis Byrne quotes the Institute's research in a recent editorial. He concludes the debt Baby Boomers are leaving makes them the 'worst generation'. GAO Reports on Mississippi Stimulus Spending 7/24/2009 Here is how the GAO reported on spending in Mississippi Ford Turns A Profit 7/24/2009 Ford's mastered the heartburn of cash burn,reporting a quarterly profit. It comes from changes in the company's debt structure rather than from building cars but the company is on the mend. Ford is the only "Big Three" company to refuse a bail-out. Pelosi: I want a bill." 7/23/2009 The Speaker believe the planets are aligned for a health care bill. She's willing to cancel Congress' August recess to take advantage of celestial mechanics. ZIRP and the Dollar 7/22/2009 "Zero Interest Rate Policy" is just one of the factors driving the Dollar to an all-time low. By debasing the currency, it's likely that we are foreclosing a prosperous future that depends on a dollar that is a solid store of value. Taxes and Health Care 7/21/2009 Taxes are rising at local, state and federal levels. Soon, taxpayers will be subject to higher overall rates than in Britain and France. Democrats are having second thoughts about raising taxes on some Americans to fund health care Taxes and Trade 7/20/2009 Americans pay one of the highest coporate tax pass-throughs despite the perception that our rivals pay more. No longer. Also, our trading partners are sending their goods here tariff free but we won't ratify treaties that help our workers. Read Legislation Before Voting? 7/17/2009 If you think our representatives should read legislation before voting you will be impressed with this $87 Billion proposal. On the lighter side, from The Washington Examiner. CBO Says Health Plan Will Increase Costs 7/16/2009 Congressional advocates of national health care were told total costs would rise, not fall, under their plan. The non-partisan Congressional Budget Office is the source of the analysis. Chinese Stimulus Program Works 7/16/2009 The Chinese economy is 8% larger this year due to its successful stimulus plan. Why did China's remedy jumpstart their economy while our stimulus plans fell flat? Sheila Weinberg On The Air...Again! 7/15/2009 Here's a story on public finances in Illinois and a link to a radio interview with Sheila Weinberg from last Thursday. Issued nine months late, the state's annual financial report shows the Land of Lincoln's condition is dreadful...and getting worse. Rent Rather then Evict 7/15/2009 Reuters reports the administration is considering a plan to let mortgage delinquents surrender ownership of their properties then rent their homes for several years. Would the banks hold the properties or would they sell them off to investors? Do Tax Laws Have Consequences? 7/13/2009 Here are two articles on the migratory effect of taxes. In New York, it's an argument while in London, it is an example. They say that an example always beats an argument. China Questions Dollar Again At G8 7/11/2009 At the G8 this week in Italy, the Chinese raised questions about the dollar as the world's reserve currency...again. Sooner or later, the rest of the world will begin to believe them. An Appreciation Of The Deficit 7/10/2009 This article appeared earlier this week but is worth a read. It asks what will happen after the the immediate economic crisis subsides. Stimulus Plan Hijacked By The States? 7/8/2009 ESA Today reports that the states are diverting stimulus funds from Congress' intended purposes to projects they feel more important. This begs the question of why not lower federal taxes and leave the money with the states in the first place? Obama vs Biden Over Economic Assessment 7/7/2009 The Huffington Post reports: Was the recession "misread"or was the information incomplete? If it was the latter, perhaps more truthful accounting would help. Why Truth in Accounting is Necessary 7/6/2009 This story illustrates how state and local pension funds are "cooking the books". In essence, it says if your actuary gives bad news, ignore it and hire a new actuary. Dollar To Be Challenged at G8 7/6/2009 G8 members and the rest of the BRIC nations will meet in Italy later this week. Expect the discussion to include replacing the dollar as the world's reserve currency. Taxpayers Asking For Truth In Assessment 7/5/2009 Local property owners are asking for assessors to truthfully value their homes and businesses. That's straining local budgets. Foreclosures Not What We Thought? 7/3/2009 Stan Liebowitz finds the foreclosure crisis was caused more by borrowers with low equity than by subprime borrowers. This finding should have profound implications for federal policies and the trillions of dollars they are sending to the mortgage markets. Gas Taxes To Help Domestic Manufacturers? 7/2/2009 CAFE standards have been touted as the way to get "greener" cars on the road and reduce oil imports. Here's an alternative view that holds a gas tax--rather than car prohibition--will allow the domestic producers to survive...and pay back the bailouts. How Cap and Trade Passed 7/1/2009 The New York Times reports on the billions in horse trading that went on during the lead-up to the Cap and Trade vote. Do California's Woes Predict Other State's Futures? 6/30/2009 Two stories from California reveal future battles in states with heavy obligations to state employees and large social welfare systems. California will issue IOUs instead of checks and attempt to tame the public employees' unions. Is your state next? The Other Side of the Chinese Juggernaut 6/29/2009 Chinese banks are on a lending spree that threatens their banking system's solvency. The Fitch ratings agency calls the situation an accident waiting to happen. Could it be that Chinese bank regulators may soon be glad that have all those dollars? China Questions The Greenback...Again 6/28/2009 Bloomberg quotes dollar skeptics. House Approves Cap & Trade 6/27/2009 The House passed the Cap and Trade energy taxation scheme with the votes of eight coastal state Republicans. That let 44 Democrats protect their re-election chances in 2010. Some expensive horse-trading, no doubt. CBO Finds 'Darkened' Outlook 6/26/2009 The non-partisan, Congressional Budget Office has determined that the long-term spending and tax policies of the government have turned 'explosive'. Has Anyone Actually Read 'Cap and Trade'? 6/25/2009 Congress is helping itself to a huge entitlement via 1,201 pages of fresh legislation. One wonders if any of our representatives have read the entire bill. Here's our hometown paper's take on what looks like a Chicago squeeze play. Barney Frank Reverses Course...Again 6/24/2009 First he said to "make sub-prime loans". Then, he said "deregulation" had wrecked the credit markets. Now, Representative Frank urges lower underwriting standards for condo loans. As always, he expects taxpayers to stand behind these gyrations. Americans' Manage Their Credit Better Than Their Government Does 6/23/2009 Americans have not been profligate with their credit according to this study. Many carry no ongoing balances and those who do are not drowning in debt. Too bad the federal isn't as prudent. CRAs Escape Increased Regulation 6/22/2009 Many blame Credit Rating Agencies (CRAs)as contributors to the financial melt down. The administration seems to have given them a pass in their vast, new regulatory plan. Two articles examine the CRAs role in precipitating the crisis and their futures. Italian Customs Turns Up $134 Billion 6/21/2009 A story that's been just below the radar has two scamsters trying to smuggle U.S. bonds into Switzerland. The real news is that it's possible to believe this quantity of bonds might be genuine. The Case For A National Sales Tax 6/20/2009 Paul Abrahms recommends a national sales tax to pay for social entitlements in The Huffington Post. It resembles the Fair Tax but what about repealing the XVIth Amendment? Geithner's Taking Heat From Senators 6/19/2009 The proposal to grant the Fed sweeping new powers is not impressing senators in either party. Maybe the secretary should order an audit first, then ask to expand powers. California Scaling Back Benefits 6/18/2009 The welfare state is showing its limits and the Golden State wants to hand out less gold. Maybe This Is Where The Money Is Going 6/16/2009 Banks and credit card issuers are cutting deals with their delinquent customers. Perhaps this is where all that missing stimulus money is going. Bail-Out For Hunting Boots? 6/15/2009 With all the bail-out money sloshing around it's bound to show up in unusual places. Regulators Not Rolling Over For The President 6/14/2009 The Controller of the Currency and the Chair of the FDIC have very different views on how the financial crisis began. Is this just a turf war between bureaucrats or a genuine sign to slow re-regulation until we understand what to regulate? Finally, A Congressman Tells The Truth 6/13/2009 Our own congressional representative Mark Kirk's remarks on the truthfulness of Congress' numbers. OIl At Yearly High...In Dollars 6/12/2009 Rising oil prices are not due to existing demand but because of expected demand and because the dollar is falling. This is tempting speculators to buy, forecasting demand to return and prices to skyrocket. The Russians predict $250 per barrel. Arthur Laffer's Predictions 6/11/2009 The inventor of the famous curve weighs in on the likely effect of the vast increase in spending and the money supply. His estimate of unfunded liabilities is much higher that ours. Scary! Geithner's Last Laugh? 6/10/2009 Chinese students laughed at Treasury's Geithner when he expressed confidence in the dollar. Here's a fascinating view that the Chinese (and other exporters) have a bigger problem specifically due to their dependence on exports and demographics. TARP Repayments 6/10/2009 The administration has caved on its plan to control some Exiting TARP....Horizontally? 6/9/2009 The Wall Street Journal asks if Citigroup should be allowed to fail. Union Pension Troubles Driving Card Check? 6/8/2009 Labor unions are having the same trouble as other defined benefit plans including the Social Security Administration, state and local governments and private entities. One view is that "card check" will enlist new members to fund old members's benefits. Government Unfiltered 6/7/2009 A recent congressional investigation finds the Fed's Inspector General essentially clueless. China May Diversify Into IMF Bonds 6/6/2009 China's $790 billion exposure to the US dollar is worrisome. The purchase of IMF bonds would begin to diversify their holdings and start the process of creating special drawing tights as an alternative to the dollar as the world's reserve currency. Canadian Complains About Single Payer Health System 6/5/2009 Word is Washington is considering a value added tax to pay for national health care. Canadians are paying a national, General Sales Tax but get low-value health care according to this Canadian reporter. A Shocking Statistic 6/4/2009 New unemployment claims declined for the third straight week. Nevertheless,Americans are receiving more than $2 trillion in governmental benefits. That's one in every six dollars of GDP. Two Views On Geithner's China Trip 6/3/2009 Reuters has two versions of the reception Secretary Geithner got from Chinese economic students when he claimed the dollar would retain its value. Creditors Seek Alternative to the Dollar 6/2/2009 The dollar is losing confidence as federal spending and borrowing blossom. The loss of the dollar's status as the world's reserve currency would have dire consequences. The GM Bankruptcy Backstory 6/1/2009 Bloomberg reveals the characters who will oversee the once-unthinkable GM bankruptcy and defend the taxpayers' Feds Pile On More: U.S. Debt Now More Than 4X Private Obligations 5/29/2009 Federal debt per household now reaches nearly $550,000 compared to $120,000 for all private obligations, according to this USA Today article. As usual, excellent graphics. Hat tip to Pete Speer for sending it our way. Ominous Signs In The Bond Market 5/28/2009 Although they are historically low, bond interest rates are rising. This may be a sign that purchasers are beginning to worry that the federal government's spending plans will cause inflation. California Headed For Bankruptcy? 5/26/2009 The Orange County Register recommends Chapter 11 for California. We should consider the source because Orange County did declare bankruptcy. Bumpy Road Ahead For Foreclosures? 5/25/2009 Niall Ferguson, author of The Ascent of Money, appeared for the Chicago Council on Global Affairs and predicted increasing foreclosures. Here's some evidence to support that notion from The New York Times. Dallas Fed President Sees More Liabilities 5/24/2009 Richard Fisher estimates the nation's unfunded liabilities at $99 trillion, more than 50% greater than IFTA's estimate. He blames the failure, rather than a lack, of regulation and government action. He also reports on the most asked question in China. Pension Agency Needs Help 5/21/2009 One reason to give ownership of the car companies to their unions is to fund the retirees' benefits. Why, then, are they also asking for federal help? Speculation On A California Bail-Out 5/21/2009 George Will appears in Investor's Business Daily and identifies a threat to federalism that would certainly be a part of a federal rescue. The Genesis of The Institute for Truth In Accounting 5/20/2009 The Wall Street Journal asks the same question that occured to Sheila Weinberg when she created The Institute for Truth in Accounting in 2002. Several alternatives to Single Payer 5/19/2009 Economist Edward V. Kennedy outlines several health care reforms that stop short on a British-style rationing system working its way through Washington D.C. Social Insurance Potpourri 5/17/2009 Sveral articles and views on American solvency's biggest threat--entitlements. Obama Warns Of Debt 5/16/2009 How, then, does he recommend a spending program that requires borrowing ten trillion dollars over the next decade? What's China Holding? 5/15/2009 An excellent overview of the foreign holders of U.S. debt from The China Daily. Health Care Providers Pledge Big Savings 5/15/2009 Health care providers meeting at the White House pledged to realize 30% savings or as much as $700 billion per year. Why haven't they been doing it all along? Peter Orzag, the OMB Chief weighs in. SSA Trustees Report Bad News 5/13/2009 SSA Trustees report that three of the four funds are already operating at break-even. Congress won't be able to fund current operations with FICA taxes much longer but a better question is what power the IOUs the trustees collected have to pay benefits. The 'Structural Deficit' Ploy 5/12/2009 Politicians blame the "structural deficit" when raising taxes. But, doesn't the structural deficit exist because government habitually spends more than it takes in? Political irresponsibility leads to fiscal problems, not vice versa California Fiscal Troubles And Immigration 5/11/2009 New immigrants seem to want benefits that are provided by the indigenous population. Here's a report from immigration's front lines in California where an election next week will set expectations for what the state should do for its citizens. Savings Makes A Return 5/10/2009 Americans consumed more then they produced in 2005 but we were once a much thriftier nation. The New York Times reports that our savings rate has turned up just as the government plans huge new deficit spending. Tough Timers For All Carmakers 5/8/2009 CNN Money reports Toyota will show its first consolidated loss ever. Here's an overview of conditions in Tokyo...and Detroit where the government and the unions are taking over. Movement on Social Security? 5/6/2009 Could there be a power failure on the "third rail" of American politics? The Washington Post reports some lawmakers looking at a cure for this entitlement's demographically-challenged future. New Tax Rules For Overseas Investments? 5/5/2009 Hoping to put a few drops back into a federal fiscal bucket that has a large hole in its bottom, the administration proposes to tax corporations' foreign earnings. Business interests see the plan as double taxation and plan to resist. Public Pension Abuse In Massachusetts 5/4/2009 The Boston Globe, facing its own financial problems, reports on widespread pension abuse by public employees in the Bay State. Here are a series of reports that makes one wonder if the same scams occur in other states. Ahead of the Curve 5/3/2009 As we said Friday, The New York Times is reporting that a successful Chrysler bankruptcy will influence the decisions made at and about GM. Detroit's View Of Detroit 5/1/2009 Here is a view of the Chrysler Bankruptcy from The Detroit Free Press. They worry that a 30-60 day resolution is "naive". If it only takes two months for Chrysler to emerge, GM will soon follow. TruthIn2008.org Visitors Explode 4/30/2009 Unique visitors hit an all time high of more than 180,000 in April. Less Bad Bad News 4/30/2009 In a world of financial derivatives, the second derivative of good economic news is that the bad news is accelerating less quickly. Here's The Wall Street Journal's view. Debt To The Penny 4/29/2009 The Treasury calculates the nation's official federal debt every day. here is some research to find where it stood on some important dates in history. Historical Market Recovery 4/28/2009 Market declines have hit almost all of us. What does history tell us about the time it takes for markets to recover? Here's an interesting analysis from The New York Times. Pensions and the Purpose of Socializing Them 4/27/2009 There's been much speculation that the Obama Adminstration is "socializing" lots of America. Here are two articles that look at the purpose of socializing pensions and the implications from a conservative and liberal source. President Sending Mixed Messages? 4/24/2009 The president berates credit card issuers for making credit more difficult on the one hand while, on the other, advising consumers to cut back on household debt. No wonder economist Larry Summers fell asleep. Flint Thinks Outside The Neighborhood 4/22/2009 By any measure, Flint, Michigan is at the epicenter of American industrial decay. Is their plan to survive imaginative, if counter-intuitive, or is it just giving up? Jack Bogle on the Causes of the Meltdown 4/21/2009 Bogle is the founder of the Vanguard family of mutual funds and a supremely qualified observer of the markets. His suggestion advances the notion of a sustainable society. Chrysler Finance Trips Tarp 4/20/2009 Disputed reports say Chrysler Finance executives turned down $750 million in TARP funds over compensation limits. Could this be less about finance than political coverage for those who will soon force Chapter VII on the automaker? Now That Sounds Familiar... 4/19/2009 The Institute has long accused governments of using "fuzzy math" to obfuscate their financial condition. Could that tactic be spreading to banks even though they have much stronger accounting principles? Tale Of Two Subsidies 4/17/2009 It's the worst of times for taxpayers but the best of times for federal subsidies. Here are two stories to illustrate the point. Financial Elites Turning The US Into A Banana Republic? 4/15/2009 The Atlantic compares the US financial sector with other debtor nations usually seen hanging around in the International Monetary Fund's lobby. A very disturbing article worthy of reading on tax day. But Wait!.....There's More! 4/14/2009 As if we aren't already spending much more than we are producing, the G-19 has put the touch on the president and the US for another $140 Billion for the IMF. China Buying Less US Debt 4/13/2009 China has been a dependable purchaser of US debt but they have recently been net sellers of our obligations. Does this mean higher rates will be necessary to finance the federal government's projected $1.7 deficit? Obama Brokers Low-Rate Mortgages 4/10/2009 If you are behind on you mortgage or if your mortgage is more than the underlying property is worth, the president has a solution. Paying on time or made a proper down payment? You're out of luck. Will this extension extend the real estate crisis? States Plan Big Tax increases 4/9/2009 The Wall Street Journal reports several states plan to coerce more revenues from their citizens as their economies falter. The Institute at the Union League 4/7/2009 The Union League Club in Chicago was the scene of The Institute for Truth In Accounting’s presentation on the nation’s fiscal condition. Congressman Mark Kirk and PGPF president David Walker joined us. GASB Issues an Invitation to Comment on Pension Accounting and Financial Reporting 4/6/2009 The Governmental Accounting Standards Board (GASB) has issued an Invitation to Comment (ITC) on Pension Accounting and Financial Reporting. Sheila Weinberg Podcast 4/6/2009 Sheila Weinberg appeared as the featured guest at the Rio Grande Foundation's meeting in New Mexico last week. To promote the event the local radio station had Sheila as a guest and a podcast of that program is available. Have a listen! New Mark-to-Market Rules 4/3/2009 The Financial Accounting Standards Board voted to relax the accounting rule that some say contributed to the financial melt-down. The change is very controversial and an important element to arriving at truthful financial statements. Mark-to-Market Showdown 4/1/2009 A moment for which accountants live and that bankers may rue occurs on Thursday when the FASB votes 157-e. Be sure to sample readers' comments on the article. Banks Walking Away From Foreclosures 3/31/2009 What happens when an underwater debtor mails in the keys and the bank says "Return to Sender"? A new phenomenon is that banks are not taking possession of foreclosed real estate. Witnesses to the Great Depression 3/30/2009 What defines a great depression? Few remember it because if one was 20 years old on "Black Tuesday", they would celebrate their 100th birthday this year. Here are a couple of famous survivors' observations. Home Town Press On Barney Frank 3/29/2009 Barney Frank is the point man in the House of Representatives and certainly controversial. Here's The Boston Globe's reportage on the Boston Congressman's work on the bonus situation. Oil Back On The Horizon? 3/27/2009 Low oil prices may be evaporating as the industry fails to reinvest. Can producers afford to "Drill here, Drill now" at $50 oil? Economic recovery may create a shortage and much higher prices. China and the Greenback 3/26/2009 China is one of America's biggest creditors. Many wonder what would happen to the value of the dollar if China quit buying our debt or if it preferred another currency. Is the Secretary of the Treasury helping undermine the dollar? "Ten Trillion and Counting" 3/26/2009 PBS's Frontline examines the nation's debt in this excellent documentary. We'd argue that the title should be 60 trillion and counting but it is a start. EU's View Of The Stimulus 3/25/2009 European Union leaders sound off on the US's call for them to increase their own stimulus spending. They recommend staying the course already set, not more spending. Mark-to-Market 3/24/2009 We are often asked about this accounting principle's role in the banking crisis. Here's an opinion from The Wall Street Journal with a catchy title. Treasury Reveals Bank Plan 3/23/2009 Forbes reports on the Treasury Secretary's plan to fix the banks' problems. Obama Assures China 3/22/2009 While establishing his credentials wwith Brazil's Lula da Silva, the president assured China and "every other investor" to have confidence in US investments. Brazil is the fifth largest holder of US Treasury debt. Mortgage Relief 3/20/2009 When the melt-down started, weren't adjustable mortgages blamed? If mortgage rates are now at historic lows, shouldn't some relief be at hand? Bankruptcy In California 3/19/2009 In the first case of which we are aware, a bankruptcy judge has voided public employee contracts in Vallejo, California. With hourly labor costs in the public sector more than 45% higher than in the private sector, will we see more of this? State Pension Fund Woes 3/17/2009 Bail-outs or bankruptcy? Get ready for the next wave of financial troubles in public employee pension funds. A Model For The Feds In Nebraska? 3/14/2009 Shane Osborne, Nebraska's Treasurer, recommends transparency to the federal government. What Took So Long? 3/13/2009 The New York Times reports the Chinese Premiere is worried about that country's trillion dollar investment in U.S. Treasuries. A Global View of Capitalism 3/12/2009 The Financial Times has an expansive series on this economic system and who is important in its future. National Health Care Express Derailing? 3/7/2009 Two big public employees unions have pulled out of the coalition to nationalize health care. Health care nationalization would likely increase the nation's unfunded liabilities substantially. China's Stimulus plan 3/6/2009 The 11th People's Congress is underway. It's a forum Chinese leaders use to set expectations and an event the West should heed. Business School Advice On Fixing The Financial System 3/4/2009 Themes from academics who recently collected their best advice Pension Concerns Not Just The States' Problems 3/3/2009 Underfunded pension plans are not just the states' problems as this survey of our hometown corporations shows. AIG Loses, Taxpayers Chip In 3/2/2009 American International Group lost $61.7 billion in the last quarter of 2008. That's a billion dollars evaporating every business day. Why is AIG so important that the Treasury funds it directly? Citi At The Trough 3/1/2009 Is the third time the charm? Higher Taxes Coming 2/26/2009 The administration's budget proposal, which promises a huge increase in the current deficit and a raft of unfunded entitlements, will be be funded by higher taxes announced on Wednesday. States' Financial Conditions 2/23/2009 The Detroit News reports on state fiscal problems. It is interesting that the states in the news--California, Michigan and Illinois--are not among those states in the worst condition. Who Owns What? 2/21/2009 The China Daily has an excellent graphic showing the owners of U.S. obligations. China Makes A Move 2/20/2009 Wonder where all that money we send to China is going? We may be seeing where, this week. Politics and the Bailout 2/18/2009 The effect of politics on the economics of the bail out according to Holman W.Jenkins The Future Arrives In The Golden State 2/17/2009 For years The Institute for Truth in Accounting has been warning about governmental fiscal meltdowns. Most folks weren't concerned thinking "Why worry, that's years in the future." The future is arriving in trend-setting California, this week. Where Bad Assets Go To Die--Or Revive 2/14/2009 After the F.D.I.C. moves in, what happens to the questionable assets that cause banks to fail? China Speaks 2/13/2009 We are constantly asked what China will do about so many U.S. treasury securities they already own and those that will be generated by the stimulus bill. Here's the answer according to The Financial Times. Foreign Holders of US Debt 2/11/2009 Ever wonder which countries are buying up all the debt the Treasury issues? Here's a list. How The Financial Crisis Developed 2/9/2009 Economist John Taylor's view of the government's role in the financial crisis. A Primer On Deflation 2/6/2009 With a trillion dollars being injected into the economy, it's hard to believe we will not have inflation. Nevertheless, some economists think we'll actually experience deflation--here's what might happen. Tax Code Complexity Rather Than Intent? 2/4/2009 Cynics may say that the two cabinet nominees who dropped out for tax troubles are tax cheats. Perhaps the tax code is the offender. Here's exactly that opinion from The Houston Chronicle Chimerica 2/3/2009 China's Economic Observer editorializes that a bright future requires both America and China's participation. Unfortunately, it recognizes the flow of treasuries eastward but not how to reach financial equalibrium. Big Bang Coming? 2/2/2009 The Financial Times reports that the Obama Administration is planning a big announcement to limit foreclosures and to get banks lending again. Sheila Weinberg to appear on ABC Ch. 7 News 430p today! 1/30/2009 IFTA Founder/CEO to talk about the challenges facing Gov. Quinn with the budget. Schwarzenegger To Furlough Workers 1/29/2009 Courts have granted the California governor permission to send workers home without pay. This tactic will sweep the nation if it works. Where The Money Goes: Part Two 1/29/2009 The Boston Globe publishes graphics that show where the money goes. Only 5% will be spent to infrastructure and most of that won't happen this year. Where's The Money Going? 1/28/2009 The "Economic Recovery" bill is more deficit spending than stimulus and it will materially raise the public debt. Economist Thomas Sowell holds forth. Central Bank's History 1/27/2009 An interesting historical perspective on the role of cental banks and panics. Auto Bailout Frustrated By The States? 1/26/2009 The president finds it within his power to give states permission to override federal environmental laws. Before the states form the alliance they plan, please check Article II Section 10, which is quoted below. Pension Battle Looming? 1/25/2009 Our friend Terry Savage's SunTimes column on Illinois public employees' pension situation Chinese Graduates Feeling The Meltdown 1/25/2009 Chinese college graduates have believed that they are entitled to prosperity but are finding that's not the case this year. How long until China decides to invest in itself rather then invest in U.S. debt? It is already happening. An Excellent Way To Spend Twenty Minutes 1/23/2009 The first few pages of the Congressional Budget Office's recent testimony is attached and a link to the entire report is included. An excellent document for drawing a general appreciation for economic conditions and their likely trajectory California Tries To Help Itself 1/22/2009 California is running out of money so the governor ordered furloughs to preserve cash. Public employees are objecting and have filed suit. Trends start in California; stay tuned for similar problems in other states. Advice From The Brits 1/19/2009 Clive Crook of The Financial Times provides a quartet of suggestions from a real welfare state with predictable recommendations. Bail Out Windfall 1/18/2009 After telling banks to accept mortgages from debtors who could not repay, the federal government is now telling banks to use bailout money the same way. Bank CEO John Hope says no to change as do many other bankers. Two Views of the BofA Situation 1/17/2009 BofA stepped up last year to help calm markets when it purchased Countrywide and Merrill Lynch. Washington backed the transactions but now the bank's hometown newspaper is second-guessing the deal. The Wall Street Journal sees it differently Fix Our Debt 1/15/2009 Send $194,400 To Washington Today Public Sector Pension Problems Looming 1/13/2009 Years of promises for benefits far in the future and a stock market melt down are challenging governors and mayors. China Losing Taste For American Debt? 1/9/2009 The New York Times reports what many observers worry about: what happens when China stops buying our debt? Markets change quickly and this may be the first sign of a change in China's strategy. Obama To Take On Entitlements? 1/8/2009 As Nixon opened China, will it take a liberal Democrat to confront the entitlement problem? One Senator's Advice 1/6/2009 New Hampshire Senator Judd Gregg seems to understand the nature of the nation's financial challenges. Here's his advice on the coming stimulus plan. Obama Tax Cuts 1/5/2009 What happened to the plan to make Americans pay their "fair share"? Creative Borrowing Bites California Towns 12/31/2008 Trends often start in California; here's one that will not be welcome in the rest of the nation. Rationing: A Solution For Health Care Cost Control? 12/30/2008 Four chronic diseases and end-of-life treatment entitlements are the primary drivers of growing health care costs. The new administration's designee for health care policy, Tom Daschle, recommends British-style rationing. Europeans Root For Euro 12/29/2008 The Euro will overtake the dollar as the world's reserve currency within five years according to this article's poll of Europeans. It's Not Just Us..... 12/28/2008 Our friend Paul Jacob on the orgy of debt: Fiscal Literacy 12/27/2008 Fulfilling The Institute for Truth in Accounting's mission requires citizens to have a grasp of financial principles. Here's what Virginia's schools are doing. Take the attached quiz and see of you can find the error! How It Adds Up 12/26/2008 Here's a list of projects that cities and states are pitching to the incoming administration. It's easy to see how we spend more than we have. Warning Signs At IndyMac Unheeded? 12/23/2008 Reports in today's New York Times say the failed subprime lender improperly accounted for a capital infusion that allowed it to claim "well-capitalized" status...just before it failed. Mortgage Aps Explode 12/22/2008 Mortgage applications are keeping lenders busy inspecting applicants' credit more closely, this time. President Throws A Lifeline 12/19/2008 President Bush sends TARP funds to GM and Chrysler. Ford is ok, for now. In three months they must demonstrate "net present value" and account for "all future obligations". We'll see. Wait A Second... 12/15/2008 The New York Times has a few questions for Treasury Secretary-Designate Geithner. True But Incomplete 12/13/2008 Here are the trade figures from October. They are true, but incomplete. Truthful accounting is complete and comparable and would include year-to-date numbers, like private companies produce. Perhaps the government doesn't want us to know! Accounting Is Not Always About Numbers 12/11/2008 Congressional investigators are looking into Fannie and Freddie but what sort of accounting can we expect? Tough All Over 12/10/2008 For the first time since 2001, China's exports fell. At the same time, US treasuries sold to yield zero percent. Is there a connection? Zero Percent 12/9/2008 Car dealers often use "Zero Percent" financing to lure buyers. Now that the government is entering the car business, the technique seems to be spreading to the Treasury. Divining The Future Of Health Care 12/5/2008 Health care costs are a significant challenge for the economy. Tom Daschle is already being called the "Health Czar" and he's revealing the new adminstration's plans. Materiality 12/4/2008 One of accounting's central concepts is materiality. The banks are getting more than a trillion dollars going to banks without much oversight, is the $25 billion the car companies are asking for even material? What's A Life Worth? 12/3/2008 Britain's national health rationing system has an answer: about $22,000 for six month's life. If it costs more, the patient is out of luck, according to this article Unimaginable Casualties 12/2/2008 Once, the local telephone company defined financial stability. No longer as news of the telco in Hawaii has filed for bankruptcy. Was it too much debt,bad deal making or cell phones? The New Economic Team 11/25/2008 Two of our favorites, Brian Wesbury and Robert Stein's take on Obama's picks for the economic team. Is A Pattern Developing? 11/24/2008 This morning's news that Citi will get at least $300 Billion reminds us that Robert Rubin has been on the the company's board for several years. Are New York financiers with government ties getting favorable treatment? Jobs Plan A Net Loser 11/22/2008 President-elect Obama pledges 2.5 million new jobs but his advisors predict that won't be enough to overcome the losses the economic melt-down will cause. Maybe the bail-out money might be better spent on jobs. Private Pension Funding in the Crosshairs 11/20/2008 The public sector has long underfunded its pension obligations but private companies have done better. Now, with the financial crisis hurting companies, they want relief from their pension funding responsibilities. Congress's View on the Financial Crisis 11/14/2008 Here is Congress' Joint Economic Committee's opinion on the meltdown. Hat tip to Pete Speer for the lead. What's the Bail Out's Real Cost? 11/13/2008 This article in Forbes thinks it's as much as $5 Trillion. Transparency Required 11/12/2008 Does anyone know where all the bail out money is going? Here's a good start on making the system more transparent. Iceland as Example 11/9/2008 Once the hottest economy on the planet, Iceland has stalled. While parallels aren't perfect, there's much to learn about how quickly an high-debt economy, especially one dependent on foreign debt, can collapse. That Depends... 11/8/2008 So, how much bank capital has evaporated since the crisis began? That depends on how you measure the loss. Here's a must-read opinion on various ways to do just that. Bail Out Confusion 11/7/2008 The fast action by the Congress proves the old adage about acting in haste. On Target 11/4/2008 For those of us who worry about the effects of entitlements, this opinion from David Brooks is right on target. Argentina 11/3/2008 The Institute is interested in the policies and fortunes of other countries. Argentina is the poster country for bad policies. Here's why. Candidates Sign Truth in 2008 Pledge 11/1/2008 Thirty Seven Congressional and Three Senate Candidates Commit to Telling the Truth about Our Nation’s Debt Evanston's Public Employee Pension Problems Real 10/31/2008 More problems from the Land of Lincoln's most progressive city. Market Decline Raising Pension Costs 10/31/2008 We're partial to Illinois stories but this one probably applies to many cities and states. GDP Drops Less Than Expected 10/30/2008 Pundits told us to expect a half-percent drop in Gross Domestic Product. The actual result was only 3/10th's of 1% Voters Will Decide Initiatives in 36 States 10/29/2008 Many will mandate new spending when states are already fiscally challenged. GM Seeks Bail Out 10/28/2008 General Motors is looking for federal assistance to help it merge with Chrysler. This follows a $25 billion assistance package already sent to the industry. AIG's Financial Reporting Woes 10/25/2008 "Mother Jones" reports on the accounting deficiencies at AIG which contributed to its collapse. Like other big companies that failed, AIG was warned. Do Deficits Matter? 10/24/2008 Of course they do but politicians often play both sides of the issue. Without a constituency for fiscal sustainability, there's no political cost for opportunistic leaders. Although it's rather partisan, here's an opinion that names names. Managers Skeptical on Rescue 10/22/2008 You can lead a CEO to liqudity but can you make him bullish? Managers aren't convinced that world-wide efforts by governments to stem the financial crisis will achieve their purposes. Another look at Keynes 10/21/2008 The "Financial Times" remembers the great economist as the financial crisis unfolds. This Time For Sure! 10/20/2008 The old Rocky and Bullwinkle cartoon had a routine where Bullwinkle tried to pull a rabbit out of his hat. Unfortunately, the moose always got some other animal, instead. Bernanke's endorsement of another stimulus package looks like a similar trick. Bernanke Fighting the Wrong Fiscal War? 10/18/2008 That's the opinion of Milton Friedman's 92 year old co-author, Anna Schwartz Oil Prices Fall More Than Stocks 10/17/2008 On October 9, 2007, the DJIA closed at 14,165. Yesterday it closed at 8,979 a drop of 37%. Just months ago, Oil traded at $145 yet yesterday it touched $70, a 52% fall. Will this be reflected in pump prices and increased consumer purchasing power? The Feds Get Their Year- End Statement 10/15/2008 The Federal Government's fiscal year ends on September 30th and their statement didn't look much better than your quarterly 401k statement. The budget deficit came in at $455 billion, the most ever. Bail Out: Plan B 10/12/2008 The bail out, as initially structured, did not calm the markets as its designers had hoped. Now, new strategies are being tested. Here are several views. Second Thoughts on the Bail Out 10/10/2008 The recently passed $700 billion plan isn't restoring market confidence. The big thinkers are now considering picking which banks should survive and injecting capital directly. End Of American Capitalism? 10/10/2008 Sheila Weinberg on "First Business" 10/7/2008 IFTA Founder and CEO Sheila Weinberg comments on the bail out on Tom Hudson's "First Business" program Caleeefornia Under Water? 10/5/2008 This article is primarily political analysis but the economic message is unmistakeable: state and local governments are facing economic calamity but can't rely on printing press money to bail themselves out. States Next in Line? 10/4/2008 Bail outs are all the rage in Manhattan, DC, Detroit and wherever they make wooden arrows. Are the states next in line? Owner's Manual for the Bail Out 10/2/2008 Forbes provides an explanation of the bail out. Bail Out Passes Senate 10/2/2008 The extraneous matter added by the Senate last night displayed a perfect example of modern sausage-making. It demonstrates why we have a fiscal problem. Judging Congress Harshly 9/30/2008 Our friend Terry Savage predicts the consequences of the bail out flame out. Another Bailout Passes 9/30/2008 While the Congress deliberates the financial bail out, they quietly passed an automobile bail out. The Bail Out: Sunday's Developments 9/29/2008 Here's a one-page summary and a six page section-by-section analysis from Congressman John Linder's web site. REINVEST, REIMBURSE, REFORM 9/28/2008 Speaker Pelosi's press release explaining the specifics of the bail out and much more. Bail out Views--East to West 9/27/2008 From London, New York and Los Angeles, the why, the what and the how of the bail out. David Walker's View 9/26/2008 Peterson Foundation president, former Comptroller General and IFTA's friend David Walker on the crisis. It's cross-posted in "The Financial Times". A Warning from the Ancient Past 9/25/2008 On September 30, 1999, reports had Fannie Mae reducing credit standards. Here's the original article from the NYTimes. News Round Up On The Bail Out 9/25/2008 Here's a range of stories ranging from the Wall Street Journal to George Soros' opinion appearing in the British Press. Academics Assess the Bail Out Plan 9/24/2008 Three distinguished professors of business give their views on improving the bail out. What The Fed Can Still Do 9/24/2008 Politicians are holding the bail out bill hostage--and they may be right--but here's an article outlining what ammunition remains in the Federal Reserve's fiscal arsenal. How Did We Get Into This Mess? 9/22/2008 A remarkably candid view from "The New York Times" Freakonomics column. The Bail Out: What We Know. 9/20/2008 Here is what we know about the $700,000,000,000 bail out including the text of the draft legislation authorizing it. Bail Out To Socialize Bankers' Troubles 9/19/2008 Late night meetings lead to a plan for the government to take over illiquid assets in exchange for taxpayers' cash. Does the federal balance sheet need any more dead weight? IFTA CEO to Moderate Rescuing America Forum 9/17/2008 September 18, 2008 6-7:30 Rescuing America Location: McCormick Freedom Museum, 445 N. Michigan Ave., Chicago What Will The Bailouts Cost? 9/17/2008 Federal officials say competent management of seized assets may substantially reduce the costs of the bailouts. Some have even predicted an upside. Don't Worry...Be Happy? 9/16/2008 From Brian Wesbury and Bob Stein, a contrary view of the financial meltdown. Example: Why Achieving Fiscal Sustainability Is So Difficult 9/16/2008 From "The Detroit News" good advice about bailing out the financial sector but, in the same breath, a special plea for the domestic automakers. Entrenched interests stand in the way of good policy Markets Roil As Feds Say "No!" 9/15/2008 Secretary Paulson says NO! to a Lehman Brothers bailout. That may be bad news on Wall Street but not burdening the public with more contingent debt is good news for Main Street. Untruthful Accounting for Fannie and Freddie? 9/14/2008 The federal government wants to keep the financial effects of the takeovers off their balance sheets. Wasn't off balance sheet financing the reason Enron was prosecuted? Follow The Money 9/12/2008 Wondering why the federal government seems so willing to bail out private investment banks? As is always good advice, follow the money. The Bailout 9/10/2008 The costs and indicated action according to "The New York Times". Citizens Group Wins Transparency Victory 9/9/2008 The College of DuPage in suburban Chicago has put all expenses on-line for all taxpayers to see. Takeover Lifts Markets 9/8/2008 Markets are applauding the federal takeover of another federal enterprise. Bad Accounting Sinks Fannie & Freddie 9/7/2008 Reports swirling this morning indicate that Fannie Mae overstated its capital base. It's likely that Fannie's managers will be fired and that taxpayers will own both Fannie Mae and Freddie Mac before the day ends. NIMTOO 9/6/2008 Our friend Rick Skiba tells us politicians often think NIMTOO which means "Not in my term of office". Here's a perfect example. Employment Numbers Dismal 9/5/2008 The DJIA lost 3% after the market predicted today's unemployment numbers. $600 Million Gift To Genetic Research 9/4/2008 Billionaire Eli Broad has pledged $600 million to discover genetic causes of chronic illnesses. These diseases are among the primary reasons America spends so much on health care. Bravo! Not Everything Starts in California 9/3/2008 The California Legislature has reached a milestone that few would wish to turn into a bumper sticker. As of Tuesday, the state budget was 64 days late, and counting... Two Views on Manufacturing in Ohio 9/2/2008 Both parties recognize manufacturing as a wealth creator and Ohio is a state that has been a manufacturing powerhouse. What's the situation there and what does it tell us about the economy generally? Labor Day Means Back To School 9/1/2008 The best way to prepare for the world of work is a college education. What's happening in the world of higher education and how will it change U.S. competitiveness? SEC Orders Switch To International Accounting Standards 8/28/2008 For 75 years, U.S. GAAP has been the gold standard. Does this move favor the users of financial statements or the accountants? U.S. Rally or World Collapse? 8/27/2008 Following on yesterday's news, is the spectacular rise in the dollar due to super-competitive US conditions or a malise in the rest of the world? China Accumulates Dollars Again 8/26/2008 The Chinese have ordered their banks to accumulate enhanced reserves in dollars. This has helped the dollar rally but do the Chinese have their own reasons? Inflating Debt Away 8/23/2008 Adam Smith observed that governments repudiate debt rather than pay it once it becomes unmanageable. Here's one opinion that suggests the U.S. has begun that process. International Accounting Standards to Replace GAAP? 8/22/2008 U.S. companies would be able to file financial results using international accounting standards according to a timetable U.S. securities regulators will propose next week. Soothsayers Predict Big Bank Failure 8/20/2008 Whispers about a big U.S. bank failure are too loud to ignore. Unlike Senator Schumer however, nobody will say which one. Government CFOs Say Systems Broken 8/19/2008 Government CFOs say that accounting compliance costs more than it's worth and consumes most of their time. But it is nice to know that some are producing auditable financial statements. Dr. Doom 8/18/2008 Are the worst of our economic problems over or are they just beginning? Meet Sal Grosso 8/18/2008 Sal Grosso is a hero you should know. An Interesting View Of Oil Prices 8/17/2008 The conventional wisdom is that oil prices have risen because of increasing demand in China and India. Here's a more nuanced view with a different conclusion. U.S. Gets A Silver! 8/15/2008 The United States has become the second worst environment for corporate taxation. Only Japan is worse. Olympics Not The Only Thing China Is Watching 8/13/2008 While the world is watching the Olympics, the Chinese are watching the U.S.'s financial performance. Dollar and Oil Both Go The Right Way 8/9/2008 Good news: the dollar rose and oil fell on world markets yesterday. Why? IOUSA Reviews In 8/7/2008 The first reviews of IOUSA are in from the Washington Post. Standing ovations for a documentary! An Even Handed Appraisal of the Mortgage Crisis 8/6/2008 In the wake of Freddie Mac reporting record losses, here's The Financial Times' view of the overall situation. Another Fannie Mae CEO Problem 8/5/2008 Another highly paid Fannie Mae CEO makes the news for all the wrong reasons. IOUSA Premieres On August 21 with Peterson, Walker and Buffet 8/4/2008 One night only! Save August 21 to see the startling documentary IOUSA and hear Pete Peterson, Warren Buffet and David Walker discuss the fiscal challenges the nation faces. Chinese Media Predicts Obama Win 8/2/2008 The China News reports American econometric models predict an Obama win by a small margin. What Not To Worry 8/1/2008 It's Friday and time to lighten up. Here's a list of ten items you can cross off your list of worries and enjoy the week-end! The Fannie Mae Bailout Becomes Law 7/30/2008 The taxpayers will fork over at least $300 billion to bail out as few as 400,000 delinquent debtors. That's $750,000 per mortgage! Does this make any sense???? Good News On Health Care Costs 7/28/2008 Here's some news on Medicaid costs in Florida. Surprise! They are down nearly 8% and benefits are up. Find out why. Letter to the Editor Department 7/25/2008 Sheila Weinberg's letter published today as a reply to a recent article, "Fixing Springfield" by Dennis Byrne. Congress To Vote On Bail Out 7/23/2008 As Congress votes to send our tax money to bail out the housing market, they might also consider how we got into this position Turf Wars Accompany Fannie & Freddie Bailout 7/21/2008 The Office of Federal Housing Enterprise Oversight has not succeeded in its mission. Secretary Paulson's price for bailing out Fannie and Freddie includes a new, tough love regulator. Is it enough to solve the problem and will Congress give up power? Means Testing Medicare Benefits 7/20/2008 This article suggests means testing Medicare benefits and raising taxes as a way to fix the program's financing woes. But is there a better way? Why Government Costs Too Much 7/19/2008 Here's one theory: It isn't very efficient and does too much wrong. Then, it has to fix the things that are wrong. Repeat. Peter G. Peterson Foundation Comes Out Swinging 7/18/2008 Here is a true patriot from the "Greatest Generation" who still worries about his country. Jerry Seinfeld, Financial Wizard 7/17/2008 Former Congressman Tim Penny and U.S. Senate economist James Carter apply the wisdom of Seinfeld to our nation's fiscal distress. Add 10% To The Total National Debt 7/15/2008 This article estimates the cost of bailing out Freddie and Fannie at $5 Trillion. This one act would increase the America's financial black hole by almost 10%. Congress Spending Us Into Bankruptcy 7/14/2008 Our friend Terry Savage makes the point beautifully. What Went Wrong? 7/13/2008 Massachusetts'mandatory health insurance plan penalizes employers whose employees don't have health insurance. The penalty is scheduled to rise from $219 to $912 per employee, per month. No wonder they want to make it a federal responsibility. Liberal Groups Insist On Accountability 7/12/2008 Disadvantaged Americans have come to rely on the accountability provisions of the No Child Left Behind Act to overcome the educational establishment's lack of transparency. Special To Illinois Readers 7/11/2008 Illinois has a real problem telling the truth to its taxpayers. Watch Sheila Weinberg put her finger on the real problem in Illinois--deficient accounting designed to hoodwink the public. News on Fannie And Freddie 7/10/2008 Should the government continue in the mortgage business? They don't seem to be very good at it and may be pushing their losses onto future generations. Governor Uses Creative Accounting to Balance the Budget 7/9/2008 Instiute questions Governor's definition of revenue and use of "Enron Accounting Breaking News! Weinberg To Appear on "Chicago Tonight" 7/9/2008 Institute founder Sheila Weinberg will appear on "Chicago Tonight" on Channel 11 at 7:00 CST, tonight, July 9th. Tune in to see the panel discussion! Stop Digging! 7/9/2008 Medicare is the black hole of entitlements facing Americans. This article shows we're continuing to dig a deeper hole. Just the facts: Will CAFE help? 7/7/2008 This "We told you so" story blames unimposed CAFE standards for pump price woes. Yet, it reports world oil demand is up only 1.4%, compounded, since 2000. U.S. demand's up less than 1% on the same basis. Oil prices have risen 20 times faster. What's up? This Wasn't Supposed To Happen! 7/6/2008 India is suffering from some of the same problems we face--some even worse. Wasn't Asia supposed to be the economic master of the 21st Century? The Consequence of Sarbanes-Oxley? 7/5/2008 Is there an equivalent to Gresham's Law in the area of accounting standards? This move by the SEC suggests there may be. Moody's: States lacking budgets may affect ratings 7/3/2008 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 7/1/2008 This time the Columbus Dispatch's Joe Blundo weighs in with data from IFTA's Web Site. Central Bankers Worried About US Economy 6/30/2008 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 6/28/2008 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 6/27/2008 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 6/26/2008 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 6/25/2008 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 6/24/2008 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 6/23/2008 Some of the same forces that are driving oil prices are at work in the electricity markets. Candidates' Tax Plans 6/20/2008 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 6/19/2008 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 6/17/2008 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 6/16/2008 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 6/13/2008 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 6/12/2008 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 6/11/2008 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 6/10/2008 Expensive oil required Americans to ship more wealth to foreign suppliers despite solid gains in exports. Two Billion A Day 6/9/2008 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..... 6/6/2008 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 6/4/2008 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 6/2/2008 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 6/2/2008 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. Florida, Too? 6/1/2008 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"? Even New Jersey Gets It 6/1/2008 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. Cap And Trade At The Gas Pump 5/27/2008 As Congress debates A Cautionary Tale From Illinois 5/26/2008 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 5/23/2008 The declining dollar helps explain why oil costs more...and why that new Mercedes costs more, too. Actuaries Blamed For Public Pension Problems 5/21/2008 When the New York Legislature fires its actuary, the New York Time takes notice. There seems to be enough blame for everybody. What Tsunami? 5/20/2008 One financial fear for Americans is the wave of baby-boomer retirements. What if it doesn't happen that way? IFTA Founder Featured By Government Accountants 5/19/2008 Sheila Weinberg is featured in the Association of Government Accountant's daily digest. With the USA Today article, it's a two-fer day! IFTA and Sheila Weinberg on Page One, Above the Fold 5/19/2008 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. Why We Need Truth In Accounting 5/18/2008 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? 5/17/2008 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 5/16/2008 Indian and American Consumption 5/15/2008 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 5/14/2008 More than half of insured Americans are taking prescription drugs for chronic medical conditions. Can We Afford Nukes? 5/12/2008 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 5/8/2008 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 5/7/2008 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 5/6/2008 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 5/5/2008 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 5/4/2008 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? 5/2/2008 Here's a sensible first step to deal with the nation's accumulating debt. The Human Side Of Payments 5/1/2008 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 4/30/2008 On the day we expect the Fed to make an interest rate announcement, our favorite working economist offers his advice. Peronal Debt Keeps Growing 4/28/2008 Government is not the only big- time debtor. Here's a recent article that provides some historical perspective on personal debt. Deficit Shell Game? 4/27/2008 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? 4/25/2008 With apologies to the late Illinois senator, a hundred billion here, a hundred billion there soon adds up to a real deficit! Well, Duh! 4/24/2008 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 4/23/2008 An economist ponders the way the media frames economic decisions in "human interest" terms and its implications. A Tale Of Two Standards 4/22/2008 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 4/21/2008 Will Fannie Mae and Freddie Mac need a trillion-dollar bail out? S&P estimates the price tag. Debt Crisis And College - Part Two 4/19/2008 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? 4/18/2008 With interest rates at 15% to support their currency, this island nation may foretell what may be in our future. McCain Reveals Some Economic Plans 4/17/2008 John McCain chooses tax day to discuss his views on managing the economy. One wonders how he defines the "federal deficit". Sallie Mae Studies Its Situation 4/17/2008 Student loans may be harder to find as Sallie Mae studies its situation and finds itself a victim of the debt crisis. Oil Prices Reflect Newly Minted Money 4/16/2008 Oil and other commodities reflect the depreciating dollar. Credit Crisis Not Over? 4/14/2008 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? The Private Sector Errs, Too 4/14/2008 Notice the lightening-fast consequences of an accounting collapse in the private sector versus the continuing problem at government entities. China: Master of the Universe? 4/12/2008 The effects of the Chinese and Indian supercycle as the Brits see it. What Do Congressmen Think About The Government's Books? 4/11/2008 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 4/10/2008 Yesterday's opinion that the Euro is doomed contrasts sharply with the strengthening Chinese yuan. Is The Euro's Rise Over? 4/9/2008 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 4/8/2008 It's hard to solve America's black hole of debt when we keep digging! "America For Sale" 4/7/2008 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 4/5/2008 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 4/4/2008 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 4/3/2008 China is becoming America's biggest competitor. This is what they are reading about our economy "We're not here to give money away!" 4/2/2008 So says a Social Security administrator facing disability claims originating under pressure from insurance companies. Too Many Clients--Too Little Money 4/1/2008 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 3/31/2008 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 3/29/2008 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 3/28/2008 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. IFTA and Northwestern's Institute for Policy Research 3/27/2008 Here's an excellent report on the substantial issues facing state governments. The IFTA attended and Founder Sheila Weinberg appears in a picture! Passing On Problematic Promises 3/27/2008 Social Security Trustees warn us once again--where are the candidates? Another Promise We Can't Afford 3/26/2008 The Pension Benefit Guarantee Corporation doesn't charge enough to perform on the promises it makes. Management Of A Financial Crisis 3/25/2008 A humorous look at one approach to managing bad news. Ask The Man Who Hires Them 3/24/2008 The former chairman of Lockheed-Martin casts doubt on earning our way out of debt. We Are Not Alone 3/22/2008 Our British cousins are feeling the pinch, too. The View From LaLa Land 3/21/2008 Joel Stein's west coast style applied to The Fed's Boss. Even More Public Debt? 3/20/2008 Fannie and Freddie to the rescue with a huge plan to leverage up. CPA Journal Spotlights Deficits 3/19/2008 Institute For Truth In Accounting's Weinberg And Nelson want to hear from candidates. Two Views 3/18/2008 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 3/17/2008 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 3/16/2008 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? 3/15/2008 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? 3/14/2008 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? 2/26/2008 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. Uncle Sam’s Credibility Gap on Spending 2/22/2008 Fewer than one in 10 Americans believe their government in Washington, D.C., is open and honest how it spends their tax dollars. Drowning in Debt 2/15/2008 I probably wouldn’t be sweating deficits, if I believed the public was being told the truth about our actual deficits and public debt. GAO's Walker Announces Early Departure 2/15/2008 Walker to Become President and CEO of the Newly Formed Public Interest Foundation called Peter G. Peterson Foundation The Savage Truth in Accounting 1/28/2008 Chicago Sun-Times columnist highlights that the hidden costs of the national debt are more dangerous than you think Truth in 2008 presents the Financial State of the Union 1/28/2008 The Institute for Truth in Accounting releases its annual Financial State of the Union. Debt, Debt, Debt 1/24/2008 David Houle, futurist and blogger, addresses our nation's debt problem. I.O.U.S.A Debuts at Sundance 1/22/2008 A breakthrough documentary on our country's debt showed at the Sundance Film Festival this week. Presidential Candidates Shrink From Budget Issue 1/16/2008 The Wall Street Journal reports that U.S. presidential hopefuls are largely ignoring serious financial issues. Financial Times: US At Risk 1/11/2008 Thanks to unfunded commitments, the Financial Times reports, the US is facing an uncertain financial future. Top Accountant Makes 'A Call For Stewardship.' 1/8/2008 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.' 1/7/2008 Laurence Kotlikoff, a Boston University economist, addressed the World Accoutancy Forum last month. His speech was informative...and sobering. Holiday Party 1/1/2008 New York Times: Pension Fund Shortages Create Hard Choices 12/31/2007 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. Current federal spending track called 'unsustainable' 12/31/2007 An update from the Congressional Budget office. Government $45 trillion short on Social Security, Medicare 12/18/2007 The Associated Press reports on our latest government financial data. Nation's Top Accountant to Discuss Federal Financial Situation on Monday 12/17/2007 Sheila Weinberg on First Business 12/11/2007 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 12/3/2007 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 11/6/2007 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 10/31/2007 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 10/29/2007 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 10/8/2007 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” 10/2/2007 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 5/2/2007 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 1/29/2007 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? 8/4/2006 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. What Can You Do? We're working to bring the financial truth to the elections, and we need your help! Sign up today for e-letter updates and information on how you can get involved in Truth in Accounting. Where does your presidential candidate stand?

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