Even less a fan of the state playing as an investor in the crypto currencies.
Yes some folks even here play it as an investment and have had success with
it, but I don’t see it as an investment.
Can’t wait for the day when the headline is state losses its crypto keys or someone in the state treasury office skims money from the state account or the exchange gets broken into again.
Ray Dalio on how this time it’s different and the US
is about 3 years from a financial crisis as the bond market cracks.
A higher deficit means the Treasury might need to sell more bonds to finance its spending and interest payments. A debt “death spiral” describes when a government needs to issue more bonds to raise money to pay its existing debts, but faces less demand and has to pay investors more and more interest for them to bite.
“A spiral of rising interest rates leading to worsening credit risk, leading to less demand for the debt, leading to higher interest rates is a classic debt ‘death spiral’,” Dalio writes.
The higher interest rates investors demand to loan the government money leave less money for running a country, increase interest rates for consumers and businesses and generally leave a country with fewer options to raise cash.
I again say that Intra-Agency debt is imaginary.
We will not pay future Social Security out of this debt. Each year it is paid by Government tax receipts and,if necessary, new borrowing.
If our Government does not acknowledge GAAP then why does our Treasury Dept. Publish a consolidated Balance Sheet?
It sure does, and these offsetting debits and credits disappear.
We owe about $29 trillion,which is too much. And no end in sight.
We took money out of social security that has to be paid back. That money was used elsewhere. Social security will be (more) insolvent without it.
It’s not imaginary. Turning around and saying we will just take on more debt to pay it back proves my point. Companies don’t have to do that. Governments do. That’s why the rules are different. They are obligated to pay it. Obligated to pay others = debt. Can you imagine a company trying to make an argument that something isn’t real debt because they will just make more money later or take on debt to pay for it? That’s absurd.
And our government does not use GAAP. This isn’t hard to confirm.
You can’t just eliminate all intergovernmental debt and claim it’s not real. Some of it is very real. Cash was borrowed from the Social Security Trust Fund and used to fund other government spending. Those funds are legally owed and must be repaid to meet future benefit obligations to the American people.
As for the consolidated balance sheet (which isn’t done under GAAP standards), I would assume an asset (receivable) is being added to social security to offset the liability. The consolidated balance sheet wouldn’t “balance” if they didn’t do that. That doesn’t mean the liability doesn’t have to be paid back.
RTCoog is completely wrong.
Our Government is like a big Corporation with many divisions. If you transfer spending from a dept budget to another dept nothing happens to the Corporation. No dept “owes” another dept.
No one owes Social Security anything. Each year our Congress actually budgets for Social Security and all else. Look up the 1968 Unified Budget Act passed by Democrats. It eliminated the folly that we have “Trust Funds”. We do not. A social security check is no different than is a Medicaid check. All are just items budgeted by Congress.
If spending exceeds revenue then Congress authorizes selling debt. They do not get money from imaginary Trust Funds. There are no such funds and no one is “paying back” social security.
I am somewhat surprised that some of you do not get this. There are absolutely no real debts owed intra-government. The Treasury Dept pays all and receives all borrowed revenue. The “Trust Fund” idea was a con job so citizens would agree to FICA taxes. These taxes were “your funds” placed in a “sacred trust”.
When I started working I paid for my Grandparents social security, then my parents. Today my children pay for mine. That is always how it has been.
No I’m not. And you haven’t actually disputed or responded to anything I’ve said. You’re just talking in generalities about how you feel it all should work.
Trust me, I “get” accounting and understand how this all works. You continuing to refer to GAAP accounting with government entities shows you don’t understand it.
No he is not wrong.
No, the government does not use the same accounting methods as a private company/business. While governmental accounting and private accounting share some similarities, they differ significantly due to the different purposes and structures of government and businesses.
The government follows the Government Accounting Standard Board (GASB)
I think his point is governments should follow GAAP because governments and businesses aren’t different. Of course, it’s not that simple and I addressed one of the reasons.
That you did, but he is ignoring that.
Is there a tariff on popcorn? Today is testing our global supply chain.
Just think if you had bought June Popcorn Futures.
I would spend it all to buy players for Willie.
Did we all yet realize that our USA does not owe $36 Trillion?
Asking for a friend.
Markets are way up, because its Taco Weds!
What kind of deal did we get?
If I am reading it correctly.
Deal needs approval + Congress Ratification
Basically, we will pay more.
So if that’s deal… China got some tariffs on them then everything else they wanted basically?
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