|
5/21/2013
Citizens could become casualties of an
underestimated financial burden |
5/20/2013
Other Post-Employment Benefits are more than
any other state according to TIA's Sheila
Weinberg |
5/17/2013
Reboot Illinois COO lists top reasons IL pension
reform matters |
5/14/2013
Who is going to stop Gov. Quinn from
misleading citizens of Illinois? |
4/29/2013
$45k McCormick Foundation grant to expand
collaboration with journalists, $80k Searle
Freedom Trust to promote TIA's State Data Lab |
4/19/2013
Economist and director of the Connecticut
Center for Economic Analysis found CT has
some of the highest total liabilities of any state |
4/16/2013
It has been 291 days since IL's 2012 fiscal year
ended — their Comprehensive Annual Financial
Report (CAFR) is nowhere to be found |
3/25/2013
Truth in Accounting mentioned in MassFiscal,
GoLocalWorcester |
3/19/2013
GARS Online provides efficient, effective,
and easy access to all U.S. Generally
Accepted Accounting Principles |
3/18/2013
MaryJo Webster shares tips on how to
navigate through your state's financial
plans |
3/15/2013
Pension Solution Requires Truth In
Accounting |
3/14/2013
SEC exposes Illinois' misleading reports
on pensions while Greece cleans up its
financial data |
3/13/2013
A new, easy-to-understand guide to how
state and local governments finance and
account for their business activities |
3/12/2013
by Sheila A. Weinberg |
3/12/2013
Federal regulators order Illinois to stop
misleading investors about the public
pension condition. |
3/12/2013
SEC Says Illinois Hid Pension Troubles |
3/11/2013
CalPERS’s corruption, insider dealing, and
politicized investments have overwhelmed
taxpayers with debt. |
3/8/2013
Report highlights the uphill struggle faced by
state pension plans nationwide |
3/6/2013
Bottom 5 Sinkhole States Have Worst Debts |
3/6/2013
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3/4/2013
Unemployment data updated for 2012 |
2/19/2013
"List of Lasts" making the rounds in
Connecticut |
2/14/2013
State Rep Dale Kooyenga demands GAAP
accounting in Wisconsin |
2/8/2013
Hawaii's tax burden is third worst behind
Connecticut and Illinois |
1/31/2013
Heartland Institute |
1/31/2013
BGA finds a flood of red ink is crashing over
Chicago-area suburbs |
1/20/2013
A private task force working on state budget
issues recently released a report on the state of
New York. Challenges facing this state are
shared by others, and some of the most
important risks can be better understood using
State Data Lab. |
1/18/2013
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1/17/2013
Updated Washington State figures from IFTA |
1/17/2013
Truth in Accounting makes for Better
Government |
1/9/2013
IFTA Cited in Newspaper Ad |
1/2/2013
States with higher debt loads continue to
experience higher outmigration. |
12/19/2012
My Fellow Americans: As we approach January
29, 2013 to hear the President deliver his State
of the Union address, our state of our union is
in trouble. |
12/19/2012
So-called "Fiscal Cliff" Negotiations Impact
State Aid |
12/17/2012
During the Great Recession, many state
governments used borrowings from the federal
government as one source of cash, but those
bills have been coming due. |
12/9/2012
Governments have a long-term cash shortfall which will require either higher taxes or a reduction in services. |
12/5/2012
How could Rhode Island's pension reform efforts inform Cook County's solution? Rhode Island Treasurer Gina Raimondo, the architect behind some of the country's boldest pension reform, joins Chicago Tonight. |
12/3/2012
Cook County (IL)Commissioner Bridget Gainer will convene a hearing Tuesday, December 4 to take testimony from Institute CEO Sheila Weinberg and Heartland Institute Dir. of Government Relations John Nothdurft about their report on county municipal debt. |
11/29/2012
The Institute for Truth in Accounting announces
State Data Lab, a website that enables everyone–
from citizens to legislators–-to better
understand their state governments’ financial
and economic condition. |
11/29/2012
Hiding the government's liabilities from the public makes it seem that we can tax our way out of mounting deficits. We can't. |
11/16/2012
Much has been said and written about Connecticut government's wretched finances. |
11/13/2012
Univ. of Denver Townhall Debate series; Sheila Weinberg speaks at FEI Chicago Chapter; The Public Sector Bankruptcy Crisis Panel at DePaul Univ.; State Data Lab at State Policy Network conference; R.I. Treasurer Gina Raimondo in Chicago Dec. 5 |
11/5/2012
Monsters are not the scariest part of Halloween. The scariest part is the monster math. The monster math is the fiscal path that our nation is headed down. |
11/1/2012
Truth in Accounting hosts Treasurer Gina Raimondo, nationally recognized for her pension reform work in Rhode Island. |
10/7/2012
Oct. 25 program hosted by AARP Illinois. Speaker panel includes Sheila Weinberg, CEO, Institute for Truth in Accounting |
10/3/2012
Join Cook County Board Commissioner Bridget Gainer, Sean McShea of Ryan Labs Asset Mgmt. and Prof. Jim Estes from Cal State University/San Bernardino to discuss the financial challenges of our municipalities and how we can responsibly respond to them. |
10/2/2012
Below Download the Report Or Obtain Hard Copy of 2010 Financial State of the States. |
9/26/2012
Bringing Truth and Transparency to Governmental Accounting |
9/24/2012
Generational theft is the crime of the century. We sensed 40 years ago the younger generation was not paying enough attention to public
policy, so we quietly found a way to maintain our lifestyle and charge it to the next generation. |
9/23/2012
Sheila Weinberg on KUSA-TV Denver:
Give the public the information they need to make informed voting decisions |
9/17/2012
Gregory Anton, AICPA Chairman of the Board of Directors, offers a non-partisan and clear analysis into why the financial statements provide a different perspective compared to the annual budget. |
9/14/2012
Former U.S. Comptroller General David Walker discusses why the financial deterioration of the country keeps him up at night. |
9/4/2012
California could be the leader of real pension reform by rejecting the flawed national accounting standards for public pensions, measuring pension liabilities using government bond yields, and linking part of the benefit to investment performance. |
8/29/2012
"While enjoying dinner at The Heartland Institute’s 28th Anniversary Benefit Dinner, seated next to me were two women whose impressive work over a period of a few years produced the recent Financial State of the States Report." Read more. |
8/18/2012
The “fiscal cliff” is quickly approaching, but President Obama, Gov. Romney, and Congressional leaders have not revealed their specific plans to avoid it – if they have one. |
8/16/2012
"Financial State of the States"
Wednesday, August 29, 2012
11:30 a.m. - 1:00 p.m.
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8/16/2012
Public Debt Crisis Hits Hometown, Illinois - The $10 Million A Minute Bus Tour - State Data Lab website launch - Financial State of the States Second Edition now in print |
8/7/2012
Up to Us, a nationwide campus competition, is an opportunity for students to build a movement to address America’s long-term fiscal and economic challenges. |
8/7/2012
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8/4/2012
"We're trying to get our elected officials to tell us the truth about our finances," says Weinberg. |
8/2/2012
While it’s common knowledge that Illinois and Chicago’s government balance sheets are awash in debt, scores of small municipalities are the next casualties of a escalating public finance debt debacle brought on by mismanagement & out-of-control borrowing. |
7/23/2012
To set the stage for a presidential debate at Univ. of Denver, Truth in Accounting and Daniels College of Business host David Walker and Christina Romer to discuss restoring fiscal sanity to the federal government. |
7/22/2012
In just the past month, three California municipalities — Stockton, Mammoth Lakes and San Bernardino — have filed for Chapter 9 bankruptcy. Consider this a warning shot for state and local governments across the country, especially in Connecticut. |
7/13/2012
Governments have resisted climbing down from Fantasyland because using lower pension discount rates would explode their liabilities. When the FASB introduced its risk-free rate guidelines, many companies shifted workers to 401(k)s. |
7/11/2012
Citing a "drastic" drawdown of reserves, Moody's Investors Service Corp. late today downgraded Chicago Public Schools' debt by one notch, and warned a second hit is in the offing. |
7/3/2012
Support the Institute's mission of bringing truth and transparency to governmental reporting. |
7/2/2012
New, nationwide accounting rules adopted last week will force public pension funds to disclose that they are underfunded by hundreds of billions of dollars more than they now acknowledge. |
6/25/2012
It is common knowledge that the United States Federal Government has serious financial challenges, but it is less commonly known that the majority of the 50 states also have serious financial problems. |
6/25/2012
ANOTHER WIN FOR THE INSTITUTE FOR TRUTH IN ACCOUNTING -- CONGRATULATIONS SHELIA |
6/21/2012
Spring 2012 e-newsletter |
6/17/2012
"Many times legislation the state estimates is going to save money in the long run ends up costing the state," said Weinberg. |
6/15/2012
Truth in Accounting's new Financial State of the States Report: Show-Me state vs. Land of Lincoln |
6/11/2012
See Your State's Financial State of the State at: StateBudgetWatch.org |
6/11/2012
The federal government's massive $16 trillion-plus debt could double in the next 15 years and eventually become twice the size of the entire U.S. economy by 2037 without substantial congressional reforms of taxes and spending, says Cong. Budget Office. |
6/11/2012
Today the Institute for Truth in Accounting announces Mitchell Feiger has joined their Advisory Board. |
6/7/2012
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6/7/2012
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6/7/2012
Weinberg will discuss the outcome of the Wisconsin elections and how other states are handling the economic downturn. http://www.beyondthebeltway.com/ |
6/7/2012
Listen to Sheila Weinberg interview on http://www.beyondthebeltway.com/ |
6/1/2012
Michigan has a pension and health care legacy cost crisis. The governor and Legislature must stop ignoring the problem and fix it. |
5/30/2012
Ad hoc IFTA Advisor Rick Skiba weighs in on recent Daily Herald Letter to the Editor |
5/24/2012
Normal accounting shows bigger debt |
5/24/2012
"By law, the federal government can't tell the truth," says accountant Sheila Weinberg of the Chicago-based Institute for Truth in Accounting.
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5/21/2012
$50,000 grant will support ongoing Institute projects |
5/2/2012
Sheila outlines the state of our states' finances and how we do not just have a federal debt problem but the fiscal crisis flows down to our states. Listen to the issues as they discuss potential solutions in the inaugural week of the Giving Legacy Show. |
5/1/2012
Taxpayers in Los Angeles are facing a major crisis if Mayor Antonio Villaraigosa and other officials do not begin to address the systemic, structural issues putting the city on the fast track to economic upheaval. |
4/29/2012
Why do governments use cash basis accounting to calculate their budgets? |
4/21/2012
The Daniels Fund Ethics Initiative seeks to strengthen the teaching of principle-based ethics to foster a high standard of ethics in students and ultimately beyond the campus and into the community. |
4/21/2012
That’s what researchers from the Federal Reserve Banks of Cleveland and Atlanta has been studying over the past year. The Municipal Financial Monitoring Team has been looking at how shocks to the municipal bond market could ripple into something larger. |
4/17/2012
Today the potholes don’t get fixed, the library hours are curtailed, the parks are closed, but the gold-plated pension and health benefits of our public servants get more costly every year. |
4/12/2012
The Truth, the Whole Truth, and Nothing But the Truth, in Accounting |
4/5/2012
Illinois Sen. Heather Steans (D-Chicago) and Rep. David Harris (R-Mount Prospect) joined Truth in Accounting at an April 2nd Legislative Workshop in Chicago, co-sponsored with the Illinois Chamber of Commerce. Click heading for full press release. |
4/4/2012
Here's what happened this past Winter at Truth in Accounting. |
3/28/2012
So here’s a quick primer, courtesy of some calculations from the Institute for Truth in Accounting. |
3/12/2012
March 16, Purdue University at Indianapolis
"Covering the New American Austerity"
Panel moderated by Gail Marks Jarvis of the Chicago Tribune.
Read more for details. |
3/5/2012
Watch and listen to podcast here.
While Revolution PAC is a Ron Paul supporter, Sheila & Truth in Accounting do not endorse any candidate. |
2/18/2012
This is not an endorsement U.S. Rep. Ron Paul. Revolution PAC is mustering dozens of special guests for its February 25 Powercast. Weinberg will speak about government accounting and budgeting reforms.
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1/22/2012
Australia, New Zealand, and Canada have successfully adopted systems similar to Full Accrual Calculations and Techniques. How about us? |
1/17/2012
Numbers... Money... It’s all very confusing, and only affects those one percent guys out East, right? Wrong. Listen to Sheila Weinberg on KYGT Radio in Idaho Springs, CO. |
1/8/2012
Here are 12 half-truths that deserve to be debunked in 2012. |
12/15/2011
If Greece could push up Italy's borrowing costs, could intensifying market doubts about the credit-worthiness of Illinois or Puerto Rico (which has more debt relative to the size of its economy than any state) do the same for California? |
12/13/2011
The state's inability to back off its ever more ambitious spending programs can’t help but raise question about just how sound Vermont’s long term finances are. |
12/12/2011
Republicans in Congress on Thursday sought to shift attention back to public pension shortfalls, with estimates of the total deficit ranging from $600 billion up to $3 trillion. |
12/5/2011
Connecticut, along with four other states, are dubbed the "Bottom 5 Sinkhole States" in the Institute for Truth in Accounting's new report, "The Financial State of the States". |
11/30/2011
Lawyers for the county, which in November filed for what could become the largest municipal bankruptcy in U.S. history, are arguing that holders of $3 billion in debt used to finance a sewer project should be forced to wait for their money. |
11/28/2011
New accounting rules — and the propsect of huge retirement liabilities showing up on local government balance sheets — are helping spur a new constituency to agitate for pension reform in South Carolina. Cities also have a motive to weigh in. |
11/27/2011
In cash-strapped Washington, President Obama’s $1 trillion health care law is presenting a tempting target for lawmakers seeking funds for other projects, as Congress last week raided the health care piggy bank for the third time in less than a year. |
11/22/2011
Springfield-based Illinois Channel covers public policy events taking place across the state. One-on-one interview with Weinberg about the Institute's efforts to create accurate accounting of government spending. |
11/20/2011
National press takes notice of Institute's "Financial State of the States" Report. |
11/20/2011
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11/16/2011
New York Times columnist proposes the government should stop reimbursing the costs of pensions and other retirement benefits at defense contractors, at an estimated saving of $30 billion over 10 years. |
11/13/2011
Truth in Accounting rules would help bring about the balanced budgets and fiscal responsibility Americans want. Why should we think a federal balanced-budget amendment would succeed? The answer is it would not succeed. |
11/12/2011
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11/12/2011
In 1990s the New Zealand federal government moved to using FACT based budgeting and accounting. |
11/11/2011
National Park Service funding could potentially be gutted if the congressional super committee doesn’t find those elusive $1.3 trillion in budget cuts this month.
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11/4/2011
Counties’ Liability for Pension Benefits is Nil |
11/3/2011
We have Generation X and Generation Y. Let’s call the next one Generation Z — for Zero — because that is the chance they have of ever paying off debt being dumped on them by local, state and federal politicians.
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11/3/2011
Difficult, but possible |
11/2/2011
Read our Fall e-newsletter |
10/22/2011
Hard bargaining by a special U.S. deficit-reduction panel is entering a more intensive stage, sources in Congress say. |
10/20/2011
First Business News video coverage of Truth in Accounting/Chicagoland Chamber of Commerce luncheon event and speaker interviews. |
10/19/2011
The Institute joined DePaul University to host "Fiscally Speaking" presentations by Sheila Weinberg and David M. Walker, former US Comptroller General. |
10/19/2011
Weinberg was one of four people who testified before the House and Senate members, organized by House Minority Leader Gene Ward. |
10/9/2011
"This place was going down in flames," Farrell said, "and the unfunded liability five years ago was only about half what it is today. The more we looked at the numbers, the more frightened we became for the state."
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10/3/2011
Sheila Weinberg will be speaking in Hawaii on “Government Accounting: The Seen and the Unseen -- What Needs to be Done?”
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9/21/2011
Want to see what $114.5 trillion in U.S. unfunded liabilities really looks like? |
9/14/2011
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9/12/2011
Yes, pension plans still exist. And some of them toy with taxpayer money. |
9/6/2011
Hon. David M. Walker, CAI Founder and CEO, and former Comptroller General of the United States, becomes Institute's first Advisory Board member. |
9/2/2011
'Economic recovery is likely to remain sluggish and recent turmoil in financial markets threatens to prolong the slump.' |
9/2/2011
Ralf Seiffe, the Institute's Research Director passing. |
8/30/2011
The president's new economic shaman once thought that the best measure of employment is the employment-to-population ratio. That would conflict with government's natural desire to show a higher employment rates by ignoring discouraged workers. |
8/27/2011
Illinois has more units of government than any other state. That may be one of the reasons it's in such fiscal trouble but here's a story of one township's government being struck by direct democracy. |
8/26/2011
Republican governors face a choice to fall into line over the first impositions of Obamacare. Even though they roundly condenm the program, more of them are taking the federal money. |
8/25/2011
After bailing out the government-sponsored mortgage giants, news arrives that the administration is considering a general refinance of all government-backed mortgages. How much more tax money would the feds have to put into Fannie without that income? |
8/24/2011
The normally very mainstream LA Times seems cranky this morning as it reports how fast federal spending is adding up. |
8/23/2011
India is going down the same road as we tried over the last several years. Apparently, it's not working out for them. As the government considers QE3, we might look at other's experiences as well as our own before we add another trillion to our debt. |
8/22/2011
Disability claims are rising as older workers are laid off and cannot find new jobs. Pressure on Social Security's disability system is so great it's taking two years to resolve cases. Estimates are that SSA will not be able to pay full claims by 2017. |
8/20/2011
The downgrade of U.S. debt has caused downgrades of municipal pension funds holding treasury securities. But some towns are getting 'super downgrades'--as severe as four notches--when rating agencies re-examine the credit quality of municipalities. |
8/20/2011
Five Questions with Sheila Weinberg on KHVH. Listen to radio interview. |
8/19/2011
Gold's remarkable rise is the mirror of the dollar's decline. The international community is looking for alternatives to the dollar as the world's reserve currency, a disaster for us. Enemies and early adopters are making moves to torpedo the dollar. |
8/18/2011
Illinois called a "Sinkhole" State for Massive Debt. Read more for video clip. |
8/17/2011
We accuse pols of using 'political math' to justify extra-constitutional spending and they use the same thimble-rigging tricks on the campaign trail. Here's a fascinating article on Texas job growth which some say is misleading. Turns out it's real. |
8/16/2011
The Institute's report on the fiscal situation in Hawaii gets attention. |
8/15/2011
Americans looking at our debts and the complexion of our creditors wonder how we'll muddle through. We need a big idea--like computers' increase in productivity in the '90's--to help. But where are they coming from? Here are some thoughts, some startling. |
8/15/2011
A new report from the Institute reveals how states use accounting tricks to evade their balanced budget requirements. Find out if your state is one of the 'sinkholes'or one of the 'sunshine' states. |
8/14/2011
The Institute is concerned about our balance of payments so news of rising Chinese manufacturing costs is of interest. As costs force manufacturing to move to other nations, fewer dollars will be piling up in The Middle Kingdom. |
8/13/2011
The individual mandate is found unconstitutional by an appeals coirt but the lack of a severability clause is apparently ignored. This sort of uncertainty may be why corporations are building piles of cash rather than investing in the U.S. economy. |
8/12/2011
Apparently, it's a fancy word for 'bailout' when applied to banks. According to some, U.S. equity markets have been volitile because of European bank problems so it's interesting to see the extent of the problem 'over there'. It's not a pretty sight. |
8/11/2011
The government will rent a quarter-million foreclosed homes. If the figure is accurate, it would have been much cheaper to spend $1,000/month to assist homeowners rather than foreclose? It would cost $3 bil/yr. rather than $200 bil we spent on Fannie. |
8/11/2011
Rumors swirled that 'thousands' of municipalities would get bad news from Standard&Poor's. That's been put off for a while but with the U.S. downgrade and the failure of the ratings agencies in the melt-down, they are looking to restore their reputation. |
8/10/2011
Health care will become the largest entitlement. John Goodman, inventor of the health savings account, continues to think and write about health care. He has some comments on the unintended consequences of Obamacare that you may not have thought about. |
8/9/2011
The recall elections are upon us as millions pour into the dairy state to change the majority in the state senate. Why this matters to the rest of the US is detailed here. |
8/8/2011
With the downgrade of U.S. debt, it was only a matter of time before the agencies and departments which depend on the 'full faith and credit' of the U.S. were also downgraded. It only took one business day. |
8/7/2011
The respected Comptroller General for four presidents has died. |
8/7/2011
Withdrawal symptoms are popping up in states as they face withdrawal of narcotic federal money. Many are taking steps to improve their economies but one wonders how the entitled classes will react to new laws and austerities. |
8/6/2011
I posted this in May 2009, but now we are starting to live the nightmare.
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8/6/2011
Leader Reid, never one to miss a crisis, says S&P's downgrade justifies taxes on billionaire jet owners. A blogger presents IRS numbers showing Reid is in fantasyland. The real message is prepare for massive new taxes on the middle class. |
8/5/2011
The media is full of stories about the nation's debt now equaling our GDP. Too bad the pundits and reporters missed another $60 trillion in unfunded liabilities, 4X the debt ceiling. But you can hardly blame them--the government ignores these debts, too. |
8/5/2011
Former U.S. Comptroller General David M. Walker Provides Comprehensive Recommendations to Put Nation's Finances in Order. Read more for full Report.
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8/4/2011
The day after the ceiling was raised, the Treasury borrowed nearly a quarter-trillion in new debt. Here are two views of varying credibility but one wonders why it should take a decade to balance the budget. |
8/4/2011
The piggy bank is empty. |
8/3/2011
It all depends on how you count. |
8/2/2011
The Washington Post finds that the washington establishment 'saved' President Obama and the Tea Party by doing the debt deal. Isn't 'Old Washington' how we got into this problem in the first place? |
8/1/2011
Despite the debt deal that prohibits tax hikes or reform, the political class will soon move to push their pain onto taxpayers. |
7/31/2011
Canada is feeling quite good about shrinking their once very large federal government. Reform has made the country much more competitive and their currency stronger. One problem is nationalized health--too expensive and low service levels. |
7/29/2011
Here's an article that appeared in The American Thinker yesterday. Make sure you check the authors. |
7/29/2011
Nationalized health care has failed in Britain as the system is no longer able to provide what Americans consider necessary services. On the other hand, the system is wildly successful for another reason: it's the world's second largest employer. |
7/27/2011
According to a Treasury Department web page we are. |
7/27/2011
The amounts being argued in the debt limit debate are hard to fathom but here's a good piece showing what our debts would look like if we piled up $100 bills. |
7/26/2011
The most significant increase in financial regulation hits its first birthday with most of its regulatory burden yet to appear. It still doesn't have a leader as the architect of the agency couldn't get senate approval and wasn't offered the job. |
7/26/2011
Dodd-Frank hits is first birthday with most of its regulatory burden yet to appear. The most significant financial regulations since the Great Depression awaits leadership because the senate wouldn't confirm the agency's architect. Something's wrong here. |
7/26/2011
The Institute released it's Fifty State study of state's true financial positions but what about the debt load families are carrying? Here's a peek. |
7/25/2011
As congressional leaders apparently concluded that the president and the treasury secretary aren't part of the solution, they began meeting on their own. Meantime, the world waits for some solution and if it includes a more realistic view of our debt. |
7/25/2011
Institute Identifies 5 Sinkhole States and 5 Sunshine States |
7/25/2011
The art of federal government accounting |
7/23/2011
From what appeared to be a promising prospect of a solution to the debt ceiling, the principals moved to name calling. What's most troubling is that Moody's may downgrade even if there is a deal. |
7/22/2011
Here's an excellent graphic that shows the various debt plans that Congress is considering. News that the Senate has rejected the Cut, Cap and Balance plan may elimninate one of the options. |
7/21/2011
Here's an NYT article we spied in Governing.com. One wonders how much the Maryland and Virginia economy is dependent on taxpayers in Montana or Alabama. |
7/20/2011
Sometimes government's solution to a problem makes it worse. Case in point: college costs. College education is a public benefit but the myriad of aid programs seems to have simply raised tuition. College is still out of reach or requires big debts. |
7/19/2011
The former president says the debt ceiling has no effect and the current president should just borrow what he wants. If this happens, one wonders how the vote on the Balanced Budget Amendment would come out. |
7/16/2011
Unless Truth in Accounting is enacted |
7/15/2011
One wise person we know characterizes the Social Security Trust Fund saying 'It's not a fund and you can't trust it'. The debt crisis is the reason more Americans will come to this opinion. |
7/14/2011
Robert Reich, a former Clinton cabinet secretary, weighs in on the McConnell plan to fix the impasse. The Institute is concerned with all our debts and that portion controlled by the ceiling is an important component. |
7/13/2011
Politicians tell us that Social Security is solvent because of the 'Trust Fund'. Yet, when asked about payments after August 3, the president says he can't guarantee them. That begs the question about tapping the trust fund. He can't--it doesn't exist. |
7/13/2011
A member of the administration's inner circle and an admirer of Mao Zedong surfacesas the lobbyist for a number of big brand names. One wonders if all the noise coming from DC isn't just a game to make the insider rich. Too bad it costs so much! |
7/11/2011
The Government Accounting Standards Board has proposed nearly all the Institute's recommendations for improving state and local accounting. If adopted, we'll see much more transparent and useful financial statements in the future. |
7/11/2011
Citing 'racism', the attorney general is pursuing a questionable policy by forcing banks to loan to customers who do not meet traditional credit standards. Deregulating the natural laws of credit via 'Affordable Housing' brought us the 2008 meltdown. |
7/8/2011
Here's one author's reaons he is personally giving up on credit. Inspiring reading for the budgeteers as they debate the debt ceiling this weekend. |
7/7/2011
The president and congressional leaders meet today to see about spending cuts. It's hard to belive they are very serious when reading the accounting for White House compensation. Public sector compensation is one reason for our fiscal distress. |
7/6/2011
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7/6/2011
Texas and California are the poster kids for what is right and wrong with the states. Here's an interesting viewpoint from a Californian thinking about Texas. Includes a fantastic picture of the Texas Governor. |
7/5/2011
Not much to report after the holiday weekend so here's something fun. Attention politicians--especially those who are having some trouble with history--why not revisit what indictments compelled a revolution 235 years ago? The reasons are listed. |
7/3/2011
Does the 14th Amendment moot the debt ceiling debate? An interesting question on the July 4th weekend--does the Constitutional requirement that the debt of the United States 'not be questioned' mean the executive branch can borrow as much as they want? |
7/1/2011
Governing Magazine has this must-read report on the tensions between public sector unions, government executives and taxpayers. The fight is about to get bigger. |
6/30/2011
California leads America in trends and one unwanted one is small business death. CA has just initiated a sales tax on internet sales which prompted a look at business conditions in the Golden State. |
6/30/2011
The media lets the former president get away with the claim he ran surpluses, again. In his term, U.S. debt increased 37% to $5.7 trillion from $4.2 trillion, according to the Treasury. Better than most but still not a net surplus. Here's his new plan. |
6/29/2011
Medicare is one of the two entitlements to which Americans actually feel entitled. Unfortunately, medical inflation and an aging population are driving the program to bankruptcy. Here's news that two senators are taking notice and working towards a fix. |
6/29/2011
The Social Security Administration now takes in less than it pays in benefits. This was thought to be temporary but thinking has changed. SSA is now in permanent deficit. This is an excellent overview of the situation at the largest federal entitlement. |
6/28/2011
What happens to the neighborhood environment when individuals walk away from their 'underwater' mortgages? Is there a similar effect when countries default in their 'neighborhood'? That question faces Europe over Greece and on streets all over the U.S. |
6/27/2011
China has enjoyed rising economic conditions for the past generation leading local governments to borrow against the future. Turns out Chinese local governments aren't much more responsible than they are here. At least they invest in infrastructure. |
6/27/2011
Today, the Institute for Truth in Accounting (IFTA) announces completion of a significant, comprehensive study of all 50 states' assets and liabilities, including pension and retirement healthcare obligations.
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6/26/2011
The vice president can't seem to move beyond class warfare. |
6/25/2011
Richard Ravitch says weaknesses in governmental accounting camouflaged mounting state deficits. We could not agree more. |
6/24/2011
N.C. Congresswoman Renee Ellmers asks the Secretary about the plan to tax small business income. Geithner responds that these taxes must rise so government won't shrink. A honest answer and we wonder if he's beginning to understand debt is not the answer. |
6/22/2011
Local government will soon be required to withhold taxes from contractor payments then send the money to the IRS. This includes credit card purchases at gas stations. States are chaffing and want out. It will be interesting to see who wins this battle. |
6/22/2011
Truth in Accounting and the Comeback America Initiative host the Fiscal Solutions Tour, 11:30 AM Luncheon Chicagoland Chamber of Commerce, 3:00 PM Seminar DePaul University Chicago Conference Center. Details to follow. |
6/21/2011
Recently we praised Gov. Andrew Cuomo for making progress against New York's financial mess. One reason Cuomo won the seat was the support of public workers. Today, we learn of the backlash from the union. This author calls it 'buyers' remorse'. |
6/17/2011
Governor Christie and the New Jersey legislature take on the pension problem. |
6/14/2011
Is there a compromise on the debt ceiling coming? Apparently, there is a renewed effort to fix the problem. It pits one side demanding spending cuts against the other wanting to tax a bigger share of the economy. |
6/13/2011
Didn't we call this 'stimulus' last year? |
6/12/2011
The financial industry doesn't like federal regulations headed their way and are doing their best to avoid them. Does that mean running better operations? No, it's much cheaper to lobby congress for the waiver known as being 'unimportant'. |
6/10/2011
Economists said unemployment wouldn't rise above 8% when they predicted the stimulus' effect. The truth is that it didn't work that way but did leave us with huge new liabilities. One must wonder if the stimulus hurt more than it helped. |
6/10/2011
This Chinese sovreign debt rating agency says the decline in the dollar's value is a form of default. By printing so many dollars, the wealth of those holding them has declined. That is probably why the Chinese have massively reduced new dollar assets. |
6/10/2011
Chinese ratings agencies say the US is defaulting on its debts by inflation. US rating agencies say they will downgrade US Debt without an increase in the debt ceiling. Do we lose either way? |
6/8/2011
It is always a thrill to be quoted and even more so to be on page 1 of USA Today. Institute founder Sheila Weinberg is the sole expert quoted in the article. |
6/8/2011
After years of corporate resistance, the chairman on GM is urging higher gas taxes to 'nudge' consumers into smaller cars. Nudge is Sunstein's strategy but what about GM shareholders? GM doesn't do well when consumers buy cars as appliances, not dreams. |
6/7/2011
The foreign press has it way with American prospects. The aphorism 'To see ourselves as others see us' has never been truer and it is something to which we should pay attention. While we would disagree that the budget was in surplus, the point remains. |
6/6/2011
Wvery day America buys 10-12 million barrels of foreign oil. At $100+/- per barrel, this adds up and contributes to the glut of dollars the world is beginning to suspect. Could natural gas be an effective substitute for oil from overseas? |
6/4/2011
Obamacare created high risk pools for 'uninsurable' Americans as its first benefit. Projected to attract 200-400,000, it has only signed up 18,000, so far. It's not often that a federal entitlement goes unsubscribed by 90-95%. |
6/3/2011
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6/3/2011
Military officers are often accused of 'fighting the last war' which is code for myopia about current conditions. Why should economists be any different? Here Paul Krugman opines we should fight the double dip recession of 1937 with the same tools. |
6/1/2011
The House's overwhelming rejection of an increase to the debt ceiling shows Congress is 'getting it'...at least in the abstract. The real test of their will to make changes will come when spending restrictions are attached to increasing the limit. |
5/30/2011
From, of all places, The China Daily an intelligent view on the prospects for the welfare state, given recent western elections |
5/30/2011
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5/29/2011
The New York Times grits its teeth and faces the fact that the U.S. Senate has not produced a budget in two years. During a time when spending and deficits have become an existential threat to the Republic, the Senate's leaders show cowardice. |
5/27/2011
After receiving the bulk of the federal 'Stimulus Plan', state and local governments are finding trouble paying for Medicaid and education. Since government costs are mostly payroll, reducing headcounts is the most effective way to balance budgets. |
5/26/2011
Il. Treasurer Dan Rutherford showed wisdom and political courage when he called debt an addiction and threatened to call bond underwriters with the truth. Illinois,like others, uses debt to 'balance' the budget because of deficient accounting standards. |
5/23/2011
Ever wonder how big a stack America's debt would be? Here's an answer but it's doesn't account for unfunded liabilities. That's not truthful; to be correct, the pile would ave to be at least five times higher. |
5/21/2011
Vermont, the only state in the Union that does not have a balanced budget requirement, is embarking on a single payer health care experiment. Twenty-six other states are suing the feds to escape the single payer system that's on the way. |
5/20/2011
Many American blame 'foreign aid' as a big part of our debt problem. Truthfully, aid isn't a big deal but we are sending lots of money to Pakistan. They are using it to build Chinese fighter plane factories and weapons capable nuclear reactors. |
5/19/2011
DSK will have his day in court but what's apparently undisputed is the cost of the room he occupied. One reader sees a larger meaning in a very large hotel bill. |
5/18/2011
Has the deficit replaced unemployment as the cause celebre in the mainstream media? This article also argues that the average duration of unemployment has increased but there is no mention of unemployment insurance's expanding duration. |
5/17/2011
The China Daily reports TIME Magazine's opinion on the relationship between America and China's economy. There are four areas they think are misconceived including jobs, currency, capitalism and trajectory. What about credit? |
5/16/2011
New governor Jerry Brown promised to ask voters to impose new taxes. The severity of California's fiscal situation means he will try to impose taxes first, and ask permission later. |
5/12/2011
Stanford graduate students working with David Walker find that the U.S. is running out of time to fix our debt problem. They say we have three years at the most. But it's not all bad news; they give examples of countries that fixed their debt problems. |
5/11/2011
Unable to borrow, Ireland has borrowed the Argentine model to put the touch on private pensions. The congress has already held hearing on using the same strategy here. If you have a 401k...watch out. |
5/10/2011
Obamacare heads to the appeals courts as lawyers for a majority of states urge the courts to strike down the prospective entitlement. |
5/9/2011
The recently sold Huffington Post's writers opine on the remedy for our fiscal woes. The authors paint a bleak picture about our options |
5/8/2011
Our friend David Walker takes a clear-eyed view of Connecticut's financial condition using the Institute's data on the Nutmeg state. |
5/7/2011
The living standards of the middle class is under pressure as we deal with the continuing recession. The question of whether real middle class jobs will come back anytime soon...if ever. |
5/6/2011
Not everyone has a pessimistic view of America's future. Warren Buffet is bullish on the US and doesn't see much to derail a slowly growing economy. |
5/4/2011
The government often operates programs whose goals would not be produced by markets. One example is the housing market where the billions spent to support prices has evidently failed. The result is even more debt for future generations to repay. |
5/3/2011
The debate about whether to address our fiscal problems with more taxes or less spending is joined by this article. It takse some critical thinking about how the US defines taxable income and who is responsible. |
5/2/2011
The news of Usama Bin Laden's death at the hands of the U.S. Navy is on our mind today. Brave men, superbly prepared show us that we can succeed at what we set out to do--abroad and here. |
4/29/2011
Quickly following the vote in the Bay State, congressmen and senators are balking at raising the debt limit without some spending controls. |
4/28/2011
With Democrats leading, the Bay State House voted to strip municipal employees of some health care bargaining privileges. The reaction of the union chief shows why public employee unions have been so successful in bargaining with the states. |
4/26/2011
The U.S. leased a tract for oil drilling but the E.P.A. has denied permission to use it on a flimsy excuse. The E.P.A.'s curious ruling sends signals we'll be sending more dollars to foreign producers and it puts pressure on the dollar's reserve status. |
4/25/2011
Michael Barone predicts the end of defined benefit plans in the public sector as too expensive. |
4/23/2011
Arizona is one of the first states to face the reality of public pension obligations. It prescribes bigger payments by beneficiaries and stops some abuses like double-dipping. |
4/22/2011
The concept of what FDR called the 'laboratories of democracy' is under assault by today's federal government. Apparently, the Feds are trying to keep Boeing from moving jobs from one state to another the company believes will be more hospitable. |
4/21/2011
Almost six of ten Americans now receive at least one federal, cash benefit. These benefits cost $2.3 trillion, annually. The trouble is, the government only collects $2.2 trillion in taxes! |
4/20/2011
The huge amount of news on the debt crisis and the potential downgrade of U.S. debt is often confusing. Here's a concise chronology of the major thrusts and parries in Washington. |
4/19/2011
In an article that completely ignores the effect on the dollar's reserve status, The New York Times reports S&P's lowering of the USA's outlook. Investor's Business Daily wonders if ratings agencies are competent and topical. |
4/18/2011
President Obama said he's going after 'tax expenditures'. These are credits the government grants to incentivise certain economic activity that would not otherwise occur. Here's an example of one such credit.
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4/17/2011
Here's a well-meaning but misleading guide to how taxes are allocated to various governmental programs. It is misleading because it does not include the total costs of these programs and debt that supports them. The feds borrow 40 cents per dollar spent. |
4/16/2011
Illinois and its cities suffer from huge unfunded pension obligations. Late career pay 'spiking' can raise a 57-year old retiree's pensions by 50%, to $167K, according to this article. If typical, no wonder the Land of Lincoln is so fiscally vexed. |
4/15/2011
The House of Representatives has passed the Republican plan for slowing the spending. Estimates are that this vote will save $6 trillion over the next decade. That's all of 10% of the problem we face but, at least it's a change in direction. |
4/14/2011
The big banks have recently been calkled nothing more than government sponsored enterprises. Soon, the banks will need to refinance their own debt and will be competing with governments for limited resources. Will government crowd the banks out? |
4/13/2011
Politicians are never content with the amount of taxes they collect. Illinois senior senator, Dick Durbin, not satisfied with his state's recent 67% income tax hike, wants to burden his state--and yours--with an internet sales tax collection scheme. |
4/13/2011
On the morning of President Obama's speech on the US fiscal situation, the IMF says the U.S. does not have a believable strategy for dealing with its debt. In a related story, the 'BRICs' and South Africa are holding economic talks without the U.S. |
4/12/2011
David Plouffe, the president's political advisor, is getting awfully close to agreeing that entitlements must be reformed. When will his economic advisors come to the same conclusion in public? |
4/11/2011
Iceland's voters reject a plan to compensate the UK and the Netherlands for helping Iceland through the financial hot water in 2008. What will happen in the credit markets when nations vote on whether to pay their debts? |
4/10/2011
Fresh from last week's battle of the budget, the president plans to announce big spending cuts--and new tax increases--this week. |
4/9/2011
Right after last week's battle over the budget, President Obama is taking the offense and proposing spending cuts. Watch for tax increases, too. |
4/8/2011
The good doctor comments on the character of politicians and the prospects for change should a balanced budget amendment be ratified. |
4/6/2011
While this isn't news to regular visitors, it is interesting to see that the media is taking notice. Pressure is building for a national confrontation with the burden of entitlements. |
4/5/2011
The Wisconsin republican outlines his plan for changing the trajectory of federal spending. This is a significant challenge to the vast expansion of government that has become the status quo of Washington. |
4/4/2011
Here are two stories on the Social Security situation. The folks on Capitol Hill don't seem to see the issue the same way the authors do. |
4/3/2011
Pension administrators count on investment returns to help meet their obligations to beneficiaries. What rate they assume is critical to the amount that must be contributed each year to be prepared to pay. |
4/1/2011
A nearby article bemoans the number of Americans working in manufacturing but this article shows the goods manufactured in America at a 7 year high. Actually both articles prove this point: productivity has eliminated many jobs but not the products. |
4/1/2011
Stephen Moore observes that there are more Americans working for government than making things. On the other hand, manufacturing has had great productivity gains that have been completely absent in the public sector. |
3/29/2011
Bloomberg News has won its battle to force the Federal Reserve Bank to reveal some of its secret support for dying banks. |
3/27/2011
Federal Reserve officials are beginning to question the stimulus plan and the damage it might do to the economy's long-term prospects. Quantitative easing is scheduled to end in June but we should stop the debt monetization practice immediately. |
3/26/2011
The Congress has managed to cut all of 6/10th's of 1% from the projected deficit. For a frame of reference, the cuts are about $30 per person. The annual deficit is about $5,000 per person. |
3/25/2011
Technology in new cars could permit the government to tax drivers for miles driven. This is being considered to help shore up revenues but where is the concern for taxpayers? And, is there any coincidence that the technology was pioneered by GM? |
3/24/2011
A federal judge has ruled that senior citizens are obligated to 'accept' Medicare to receive their Social Security benefits. Seniors who just want to have better insurance will now remain a burden on government rather than paying for their own care. |
3/24/2011
If you are curious about the outcome of the battle between the public sector and their employees, one indicator might be retirements. Public sector workers are retiring earlier than expected on fears that they will otherwise face diminished benefits. |
3/22/2011
The truth is that America will need oil's energy density for the foreseeable future. Why is the president encouraging in Brazil encouraging them to develop their off-shore wells rather than ours? This will only exacerbate our balance of payments problems |
3/21/2011
The biggest components of our unfunded liabilities include Social Security and Medicare. They've long been considered the 'third rail' of politics but now, there appears to be a drop in potential. |
3/20/2011
What do the waivers say about the governing process in the USA? Shouldn't everyone be subject to the same laws and regulations? It appears that politically connected organizations are being excused from compliance with Obamacare. |
3/19/2011
California senators propose socializing the cost of earthquakes, a regular event in CA since 1906. Turning the government into an insurance company without reserves is a recipe for financial troubles and why should non-CA residents be responsible anyway? |
3/18/2011
While the Federal Reserve doesn't seem to care much about the cost of 'volatile' commodities like food and fuel, most of the rest of us do. The costs of the staples of life have hit all-time highs. A likely result of 'quantitative easing'. |
3/17/2011
The Bureau Of The Public Debt added six times the amount of debt that the Congress recently cut from spending in just one day. Can the U.S. ever get ahead of the problem? |
3/16/2011
Former PA Governor Rendell proposes to double down on the Amtrak Acela failed experiment. If it's such a good idea, why not ask the private sector to undertake it? If we are to subsidize hi-speed rail, why not eliminate income taxes, after it's proven? |
3/16/2011
The spin on public sector pensions de-mystified for an intended audience of public-sector managers. A valuable contribution from Governing Magazine. |
3/15/2011
Michigan is considering a very different response than Wisconsin recently adopted. They are talking about a state level czar that would have what looks to be all the powers of a bankruptcy judge. They might want to read Art. 1 Sec. 8 of the Constitution. |
3/15/2011
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3/14/2011
Major changes in how America finances it home ownership are indicated by the continuing troubles at the two government sponsored financing entities. Here are some reform suggestions. |
3/13/2011
The U.S. Trade deficit keeps growing despite Washington's best efforts to staunch the red ink with exports. |
3/12/2011
The two mortgage giants have been investigated for years, now some action is expected. Where was the securities agency when there was real accouning fraud several years ago? And, if sanctions are imposed, who pays...taxpayers to the government? |
3/11/2011
This article holds that public sector pensions are a problem not so much for their generosity but for their duration. |
3/10/2011
The biggest US bond fund has exited treasuries...but not for the reasons one might think. |
3/8/2011
Pundit paul Krugman makes a startling observation on the value of education and labor, generally. Given what America spends on schooling,what does this mean for the earning power of Americans and the country's future living standards? |
3/7/2011
We've been critical of financial officials for their seeming indifference to the threat of inflation. To be fair, here's a sampling of reasons why they prefer inflation to deflation. |
3/6/2011
You may be interested in seeing the new website for the 2010 Financial Report of the U.S. Government and the Citizen's Guide to the report. |
3/6/2011
After pulling their economy out of recession faster than the U.S., the Chinese have recognized inflation as the next challenge. Do you hear this Chairman Bernanke? |
3/5/2011
This author presents three reasons why the dollar will fade as the world's reserve currency. |
3/4/2011
Judge Vinson, who found the entirety of Obamacare unconstitutional now allows the federal government to proceed with implimentation. He also is requiring expedited handling through the appeals process. |
3/4/2011
Words of wisdom that need no further embellishment...from Bill Gates |
3/2/2011
One reason our economic rivals are stockpiling dollar-denominated assets is that we buy a lot of oil from foreigners. When Nixon nixed the gold standard, he got oil producers to price barrels in dollars. If that stops, the oil threat will get worse. |
3/1/2011
Governors, who are expected to pay for much of Obamacare, are beginning to resist the growing mandates. The president has reacted with some apparent concessisions but are they really going to help cash-strapped governors? |
2/28/2011
Here's an interesting list of countries that own U.S. debt. There are some surprises! |
2/26/2011
This article posits that no one should be surprised that we need to take action on entitlements. The president says we must 'start the conversation' but where has he been over the several years that responsible Americans have been conversing? |
2/25/2011
Forbes reports the beginnings of a compromise on debt, taxes and Social Security. |
2/24/2011
The CBO raised its estimate of the Stumulus's costs yet again. One would think honest federal assessments would overestimate costs as much as it understimates them. That's almost never true. What's wrong with the accounting systems? |
2/23/2011
Laurence Kotlikoff says the US is bankrutpt and shows how the federal government uses changing definitions to hide the fact. To us, this is an accounting issue because it does not consistently apply terms,keeping them from being comparable. |
2/22/2011
US holdings of French and English debt empowered Pres. Eisenhower to stop the Suez Crisis in 1956. Now, China is using the same tactic to influence U.S. fiscal and foreign policy according to diplomatic cables now made public. |
2/21/2011
Treasury Secretary Geithner continues to be the perfect Keynsian, predicting congressional spending cuts would 'damage' prospects to expand the economy. Another more experienced economic predictor, the stock market, disagrees with the secretary. |
2/20/2011
Here's an article that highlights our self-delusion over spending. In it, the lead is that the proposed federal budget will cut $1.1 trillion from the deficit over ten years. But why doesn't it lead with the doubling of US debt over the same period? |
2/20/2011
Our major complaint is about the accounting public entities use. Here's a story that shows that not much is done even when the accounting is truthful. State unemployment funds are broke even though there were plenty of warnings. |
2/19/2011
Your editor was a student at UW-Madison when protests like these were quite common. Indeed, the modern version is much more polite and seems to lack the telltale tang of tear gas in the air. |
2/17/2011
Jacob Lew, director of the Office of Management and Budget (OMB), says Social Security 'is essentially a parallel issue.' But this doesn't mean policymakers shouldn't address its challenges.
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2/16/2011
Here is a quick video on China's apparent policy of letting U.S. debt roll off their books. Is the Fed taking up the slack and if so, what are the likely consequences? |
2/15/2011
Neither the president or the new speaker seem to be ready to tackle meaningful budget cuts. |
2/14/2011
One's greatest hopes and worst fears are seldom realized except, perhaps, for federal interest expenses. Borrowing costs are rising as bond yields increase. The choice to shorten maturities of U.S. debt has camouflaged long term costs to the economy. |
2/13/2011
The federal government spends about $1.5 trillion more than it takes in, $1 trillon worse than in 2007. Now, the administration calls for cuts of $1.1 trillion over 10 years. Why can't we just use 2007 numbers and save a trillion a year? |
2/12/2011
An important Democrat suggests that corporate tax complexity should be remedied--as long as it doesn't result in lower government revenues. Because corporations don't pay taxes--they just collect them--corporate taxes are a giant governmental opacity. |
2/12/2011
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2/11/2011
As Americans consider where to reduce federal spending, entitlements must come under considerations. Unemployment insurance is becoming insolvent so the administration has proposed a reorganization--and a tax increase. |
2/10/2011
One concern we have is that debt repayment crowds out research and development, the key to a prosperous future. Michael Milken, who shook up corporate America a generation ago, makes a direct connection between deficits and medical innovation. |
2/9/2011
The treasury secretary will present plans to reduce the 'footprint' of Fannie Mae and Freddie Mac. These life-supported institutions seemed to have escaped regulation under Dodd-Frank but maybe they will now be found not too big to fail. |
2/8/2011
Republicans promised $100 billion in budget cuts on the campaign trail but are having trouble making good. Has Potomac Fever struck already? |
2/7/2011
Mitch Daniels, governor of Indiana has a complaint about the accounting for Obamacare. Given his success in improving his state's financial condition when almost every other state declined, it's worth a read. |
2/6/2011
Here's a guest coomentary by the Institute's Sheila Weinberg regarding the Securities And Exchange Commission's mission. |
2/4/2011
When does government become a dispenser of favors more than an accountable enforcer of law? It's granted 700 waivers to the new law's requirements and surprisingly, many waiver seekers were strong supporters of 'reform'. Two items report developments. |
2/3/2011
A search for 'accountants' in the Financial Crisis Inquiry Commission's report doesn't turn up much. Howard Davidowitz asks the obvious question. |
2/2/2011
One reason the federal debt and the unfunded obligations are so massive are the promises the federal government has made. Many believe that these are often the result of 'mission creep'. The Florida ruling directly addresses the limits of federal power. |
2/1/2011
Despite the CBO's determination that health care reform would reduce the annual deficit, truthful accounting would have matched revenues and expenses. The analysis did not but that's not the reason a federal judge has ruled the whole Act unconstitutional. |
1/31/2011
Egyptian authorities have flipped the internet 'kill switch' in an attempt to tamp down the protestors. Amazingly, one of the most liberal senators is pushing to give the same power to the federal government. Why? |
1/30/2011
The Financial Crisis Inquiry Commission has released its report and there is significant disagreement as to the causes and remedies. Here are links to opinions of several experts on the subject. |
1/29/2011
Illinois' massive tax increase has been widely ridiculed but a sneaky provision eliminates tax loss carry forwards. This will retard business recovery, stifle investment and kill jobs. |
1/27/2011
Independent experts working for Medicare doubt that health care reform will hold costs down. The chief actuary also testified that many individuals will not be able to keep their existing insurance plans. Should the reform estimates be restated? |
1/26/2011
Another report on Senate talk about a new bankruptcy chapter for states. The question is whether the existence of a bankruptcy option would force feuding parties to the bargaining table. |
1/25/2011
GM, the world's second largest carmaker and the quintessential American company, sold more cars in China than it did in the U.S. We need to export there, not just sell there to help our financial situation. |
1/25/2011
Following an investigation and resulting consent decree in New Jersey, the Securities and Exchange Commission is looking into the situation in Illinois. The SEC can't directly regulate municipal securities but it is concerned with individual behavior. |
1/24/2011
While we bail out our banks without consequence to the bankers, Iceland follows a far different path. |
1/23/2011
Las Vegas' Review Journal goes on the record regarding the Institute's Financial State of the State analysis. |
1/22/2011
There's a new push to get states to expose their pension and health care liabilities in Congress. This proposal would encourage states to expose their real unfunded liabilities but because states are sovereign, it would not be required. |
1/21/2011
A new provision in the bankruptcy law is being openly discussed in Congress. Thre are significant constitutional and feasibility questions about such a move. |
1/21/2011
Talk about a new chapter in the bankruptcy code allowing states to file for protection is getting louder. Likely congressional refusal to bail out states is driving the conversation but big constitutional and strategic hurdles are evident. |
1/20/2011
Problems with state finances have economists predicting the effects on GDP. This article analyses municipal layoffs and their direct effects on consumer spending. But, shouldn't we also recognize rising taxes and fees' effect on economic activity? |
1/19/2011
Public interest groups estimated unfunded state pension and healthcare costs to be as much as $1 trillion last year. This story reports that estimate may have been only 40% of the real problem. |
1/18/2011
There is no provision in the U.S. Code for states to declare bankruptcy. That may change as the reality of states' insolvencies become more evident. |
1/17/2011
Fannie and Freddie are still making sub-prime loans that this author thinks create a moral hazard. To fix the mess. he suggests a three step plan. |
1/17/2011
Here's a link to the Pelican Post from Louisiana and a further link to a radio interview with the Institute's Sheila Weinberg. |
1/16/2011
The Economist has matched each state with its economic twin around the world. Click the link to see where your state ranks. |
1/15/2011
From our friends at Americans for Tax Reform, a list of the new or increased taxes that health care reform imposes. Turns out to be one of largest tax increases ever, meted out in small, targeted doses. |
1/14/2011
Illinois' reckless spending has convinced legislators that it was time for a massive tax increase. Surrounding states see an opportunity to poach businesses. If the U.S. increases taxes to cure its deficit, will the same thing happen internationally? |
1/13/2011
Two credit rating agencies have issued warnings on America's AAA debt rating, saying that it's in jeopardy. Given the agencies' demonstrated chronological insensitivity to changing credit conditions, are we closer to a market downgrade than we think? |
1/12/2011
Speculation about governors of New York, Connecticut, Illinois and California pleading for a federal bailout. The premise is they pay more into the federal government than they receive. But claiming that they must "balance our budgets" is a myth. |
1/12/2011
Banker Jamie Dimon predicts more municipal bankruptcies. Municipal bond prices are being inflated in anticipation of federal bailouts. |
1/11/2011
We're sometimes asked why accountants keep an eye on our trade balances. Here's a good explanation in the form of two stories in today's reporting. |
1/10/2011
The conventional economists meeting in Denver say that the Chinese eclipse of America's economy is inevitable. One specific prediction is that the yuan will become the world's reserve currency within a generation. |
1/9/2011
The Institute has long blamed 'political math' as a contributing factor in the federal and state financial problems. Here's an example of fuzzy math meeting political math. |
1/8/2011
An excellent, 80-year overview of the long-term internal migration of Americans and immigrants using our constitutionally-required accounting---The Census. |
1/6/2011
The coming collision with the debt ceiling is only the symptom of too much spending according to this opinion. That raises the question of whether refusing to raise the debt ceiling is an effective strategy for weaning federal government from spending. |
1/5/2011
Health care reform requires payers to issue IRS 1099 forms. This may set up the mechanics and be the first step to a new European-style Value Added Tax. |
1/5/2011
Yuan-denominated financial instruments are popping up in Hong Kong as the Chinese begin to unleash their currency as an alternative to the dollar. |
1/4/2011
Some American observers believe that China is keeping its currency undervalued to maintain its export supremacy. Now, Brazil's new president lodges the same complaint. |
1/3/2011
The primary measure of federal debt is its statutory limit, now set at $14.3 trillion or nearly 95% of GDP. Federal spending is quickly reaching that limit and a battle is developing on what to do when the limit is reached. Less spending or more taxes? |
1/3/2011
Five European governments have begun to take private pensions to fill annual deficits. Don't believe it can't happen here--Congress has already held hearings to find ways to eliminate 401(k) plans in exchange for federally operated schemes. |
1/2/2011
The cost of public sector wages and benefits has become a contentious subject. The unsustainable costs must be adjusted is some form, but how? And should workers or taxpayers take the biggest hit? |
1/1/2011
As boomers first reach 65 today, they will want their benefits. Like a roller coaster climbing the first hill, the associated financial crisis has developed slowly. Now that we're at the top, watch for the problems to accelerate...very quickly. |
12/30/2010
Here's one view on why medical care costs so much in the U.S. Unfortunately, the new health care law does nothing to reduce these identifiable costs. |
12/30/2010
A 'man bites dog' story about Chinese companies moving manufacturing to the U.S. It's a symptom of the declining value of the dollar which makes it less expensive for the Chinese to operate here. |
12/29/2010
Officially, the 111th Congress added $10,429.64 in new debt for every man, woman and child that was recently enumerated by the Census. That's up a staggering 30.3%, from $34,45.93, at the end of the previous, 110th Congress. |
12/28/2010
Detroit has big economic problems so why are public pension funds investing in questionable deals? One wonders if other public pension fund are involved in similar transactions and how much future fund beneficiaries expect the taxpayers to make good? |
12/27/2010
There is much controversy over the effects of the stimulus program authored by the expiring Congress. Here's the viewpoint of one state official assigned to oversee the spending. The article begs the question, 'why did we obligate the nation for this?' |
12/26/2010
A slideshow showing the effects of pension fund mismanagement in small town America. What was once thought impossible has now come to pass. Prichard, Alabama's decision to simply stop sending pension checks may become the wave of the future. |
12/26/2010
Despite looming financial problems, school districts are continuing to spend more than they take in but some have invented new techniques to bridge gaps. But will these one-time gains really solve long-term spending challenges? |
12/24/2010
With lavish pension deals justified by faulty accounting coming due, municipalities expect to raise real estate taxes substantially. |
12/23/2010
The mainstream media is beginning to take notice of the nation's dire financial condition. Unfortunately, while reporters are becoming aware that there's a problem, they are still only focusing on the most obvious, rather than the true, numbers. |
12/22/2010
Growing Medicaid budgets are burdening states as health care mandates begin to take effect. This article holds that these impositions are more problematic than public pensions. The federally-imposed costs are as expensive as education to the states. |
12/21/2010
While not available to states, cities and towns can go bankrupt under federal and state laws. Recently, the outgoing mayor of our hometown mentioned bankruptcy as the solution to the city's mounting obligations. |
12/21/2010
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12/20/2010
The bond market is starting to charge an interest premium for municipalities and states with weaker financial conditions. |
12/18/2010
After a session noted for its stately pace, the lame duck session is working hard. But is their work constitutional? This article postulates that lame ducks are unconstitutional. Wouldn't observance of notion change things? |
12/17/2010
The news media misses the facts about job creation in the auto industry. |
12/16/2010
Municipal bond issuers have been protected from revealing their real financial conditions by the Tower Amendment. This article reports that demand for more truthful government accounting is growing...and not a moment too soon! |
12/15/2010
A well-known San Francisco Democrat makes the progressive case for reforming municipal workers' benefits. But voters said 'no' and Moody's dropped the city's bond rating almost immediately. |
12/14/2010
This article by a defeated Congressional Blue Dog makes an important point worth reading but understates the criticality of unfunded promises. Just look at the nearby debt counter for an idea of how big the problem really is. |
12/13/2010
Three big problems facing all defined benefit pension plans include increasing benefits, lower asset values and lower earnings expectations on those reduced assets. Public pension benefits, primarily defined benefit plans, will cost legislatures more. |
12/12/2010
The New York Times explains the deficit in one clear, declarative sentence. |
12/12/2010
We've worried that California would be the first state to become insolvent as a consequence of not properly accounting for costs. Perhaps things are improving but permanent fiscal improvement requires proper accounting. |
12/9/2010
The bond market is beginning to demand higher yields for sovereign risk. While yields are historically low, is the injection of QE2 reserves having the opposite of the desired effect? |
12/8/2010
A term-limited state senator runs for the California Assembly and decides that a pay decrease isn't right. He filed with the California Victim Compensation and Government Claims Board. When our leaders feel this entitled, how can we make any progress? |
12/7/2010
The situation in Europe may well predict what will happen in the U.S. This author believes that the public sector's managers are just as greedy as the worst private sector actors. His prescription is to insist on more honest accounting and disclosure. |
12/6/2010
Here are two opposing views on the work of the president's deficit panel. Without the necessary votes to bring it to a vote as a package, one wonders what pieces will eventually make it through the Congress. Nevertheless, there is some bipartisan support. |
12/5/2010
We've fretted about obligations compounding at public pension funds for years. The mainstream media is now reporting the financial abyss facing state and local governments, a problem dwarfing the housing bubble. Some suggest new state bankruptcy laws. |
12/3/2010
One reason the federal budget is out of control are corporate subsidies required to support uneconomic activities. Here's a good idea to start reeling corporate welfare back. But, weren't environmental groups the original supporters of biofuels? |
12/1/2010
The presidential commission goes out of business today issuing aggressive recomendations for solving America's fiscal problems. As expected, they tout higher taxes and fewer benefits. Will there be any plan to fix one root cause-defective accounting? |
11/30/2010
The president announced a pay freeze for civilian federal workers but isn't that just a drop in the bucket compared to the annual deficit? This article sees the freeze as a harbinger of a smaller federal government. |
11/29/2010
Liberals have joined this cause celebre' in Washington; taxes and entitlements will be the battleground. But what can be done to reduce demand for benefits? Should tax rolls be expanded to all Americans to connect costs and benefits? |
11/28/2010
Dick Durbin demonstrates why Congress spends more than it takes in. He's attaching additional unemployment eligibility to the anticipated tax bill. |
11/27/2010
Politicians and analysts are not very optimistic about balancing the federal budget. Without the belief that something can be done about the budget, it's unlikely that anything will be done. The nearby quote from Henry Ford is spot on. |
11/26/2010
Black Friday bargains abound today but what is the latest on the U.S. savings rate?. Low savings is one of the four deficits our friend David Walker identifies as a chronic problem indicating an unsustainable economy and lowered expectations. |
11/25/2010
Despite denials that it's an assault on the dollar as the world's reserve currency, Russia and China agreed to accept each others' currency for bilateral trade. China replaced the dollar with the yuan for South American trade, earlier this year. |
11/22/2010
Disputes between U.S. and European accounting standards lead to a $138 billion difference when valuing the same assets. The implications are significant as these vargaries were an important reason for the meltdown. |
11/22/2010
Disputes between U.S. and European accounting standards lead to a $138 billion difference when assessing the same assets. Asset valuation, specifically 'mark to market'significantly contributed to the 2008 meltdown and the need for bailouts.
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11/22/2010
Build America Bonds were authorized by the American Recovery and Reinvestment Act and are becoming favorites of fiscally wounded states. Is this just kicking the can, more accounting chicanery or both? |
11/21/2010
Our friend Frank Keegan says 'No one uttered the dread word “Truth” during five hours of intense testimony Thursday on growing malaise ripping through municipal bond markets like rumors of plague as awareness of state and municipal fiscal malady grows.'
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11/19/2010
China is keeping its currency low which keeps prices of their products low here. Chairman Bernanke isn't pleased and tells the Europeans. |
11/18/2010
Earmarks are a tiny part of congressional spending but the quid pro quos that occur helps explain the explosion of total spending. |
11/18/2010
Financial crises start slow then accelerate as market participants begin to appreciate conditions. Years of over-promising mean a crisis may be appearing in the municipal bond market as demand for new public debt is less than robust. |
11/17/2010
We ran budgetary surpluses--at least on a cash basis--in the 1990's because the economy grew faster than expected. Should the government pursue a growth policy rather than a redistribution policy to help do away with trillion dollar deficits? |
11/16/2010
The Bureau of Labor Statistics doesn't seem to know it yet but inflation has returned. A visit to the grocery store confirms that there's a need for more truthful accounting about prices. This story reports worry about 'currency debasement'. |
11/15/2010
Peter Orzag, recently departed from President Obama's Office of Management and Budget, hold forth on the future of Social Security. But, as he correctly points out, Medicare costs are a much bigger problem |
11/14/2010
One of the consequences of the change-over in Congress will be that Fed critic Ron Paul will get some Federal Reserve oversight. This may keep Ben Bernanke up at night. |
11/12/2010
The recipe for fixing federal and state budget problems is remarkably similar according to this opinion in the LA Times. Neither will be very pleasant, if they ever see the light of day. |
11/11/2010
The Government Finance Officers Association has some recommendations on what to do about defined benefit public pensions. |
11/10/2010
A Chineses credit rating agency, seeking to compete with American agencies, has determined the U.S. may have some trouble repaying the debt we owe China,among others. Combined with QEII, are we in more trouble than we think? |
11/9/2010
VP Joe Biden holds a closed meeting on...wait for it...govenmental transparency. |
11/8/2010
Chinese economic officials are concerned with the U.S.'s planned 'quantitative easing'. As owners of more than a trillion in treasury and other assets, they will lose if the dollar declines. Look for a brouhaha at the coming G20 meeeting. |
11/6/2010
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11/6/2010
The Congress has never failed to lift the debt ceiling which has more then doubled since 2002 to a whopping $14.3 trillion limit. If they raise the debt limit every time things get tight, what's the point of having a limit? |
11/5/2010
Here are some questions you should ask your state legislators. From our friends at The Franklin Center. |
11/4/2010
'QEII', a new injection of at least $800 billion to purchase government debt sure looks like currency debasement to us. Here are some interesting views on the plan. |
11/3/2010
While everyone is watching the elections, Freddie Mac needs $4.1 billion more in federal cash to maintain 'positive net worth'. |
11/1/2010
The Chinese economy keeps growing at a fast clip if their estimates of this year's foreign trade are accurate. As they become less dependent on the U.S. as a trading partner, what will become of their appetitie for our debt? |
10/31/2010
But did they lower it enough? |
10/29/2010
Faulty paperwork is keeping the real estate market from stabilizing. One wonders if the banks can't keep the paperwork straight, if they we competent to make the loans in the first place. Like other federal bailees, we don't have an accounting. |
10/28/2010
The problem of too much debt is that it crowds out productive investment. Here's another example of our future being foreclosed by our overwhelming debt. |
10/27/2010
France is moving to raise their retirement age to 62 from 60 touching off riots. It's the equivalent of our raising the social security so it's interesting to see what will happen on the streets of Paris. |
10/25/2010
During the financial meltdown, the U.S. Treasury guaranteed more than $300 billion in securities owned by Citigroup. The Treasury is refusing to account for how the money-or taxpayers' guarantee-was applied. |
10/24/2010
In complete contrast to the public sector, private companies are making big payments to fund their future pension obligations. |
10/23/2010
San Francisco is becoming ground zero in the public pension fund question. It's little wonder--pension costs have risen to $400 million per year from just $175 million five years ago. |
10/22/2010
Many believe that the U.S. is spending too much. The British have come to the same conclusion. Can we learn from them as they make major cuts to public sector and do we have the will to change our own spending habits? |
10/22/2010
Many Americans think we spend and borrow too much. The Brits have the same problem and are talking 'Total Transformation'. Is there anything we can learn from their situation and can we muster the political fortitude to change our profligate ways? |
10/21/2010
Internationalists are advising a 'managed decline of the dollar' as a step towards what they view to be a reconstituted international financial system. Is this what's behind Treasury Secretary Geithner's 'rebalancing' activity? |
10/20/2010
in the 1950's The U.S. stopped the French and British in the Suez Crisis by reminding them of their debts to us. China is now in the same position and is withholding exports of rare earths, a vital compnent in defense and clean energy. |
10/20/2010
Here's a story about when state pension funds will run out of cash. Problems are found in some unexpected states. |
10/20/2010
The recently elected government faces reality and outlines budget cuts it intends to make. Could this foreshadow what the U.S. will do in the near future? |
10/19/2010
Federal officials posted the national debt at $13.66 trillion, up more than 28% since President Obama took office. Given that unfunded liabilities are almost five time as large, do we have our heads in the sand? |
10/18/2010
While this column has a decided point of view, its larger point is that the Financial Accounting Standards Board is ruling on multiemployer private pensions. They are in serious financial trouble and the accounting professionals are taking notice. |
10/16/2010
The market's need to find equilibrium collides with the legal system's deliberateness. |
10/15/2010
Many believe that stability in the housing market--and the mortgages that support it--are a prerequisite to financial recovery. Here are the Nobel Laureate's views on what he calls the 'mortgage morass'. |
10/14/2010
Major banks have stopped foreclosure activity which will stall the recovery in the residential real estate markets. Why? |
10/14/2010
From Governing. The double counting of new taxes for the Affordable Care Act is exposed and the likelihood of an intergenerational reported. Against this bad news, a possible solution in the form of an 'actuarial autopilot' is suggested. |
10/12/2010
More evidence that state and local governments have a big pension problem comes from this study. |
10/12/2010
More evidence that state and local governments have a big pension problem comes from this study. |
10/11/2010
Conventional wisdom holds that the Fed killed inflation in the early 1980's, or did it? In any event, the Fed appears ready to debase the currency to address the deficits. |
10/10/2010
Richard Fisher, the president of the Dallas Federal Reserve Bank, proves he is both wise and witty. Here are his remarks in Minnesota on the reliability of economic forecasting and what should be done. |
10/9/2010
After reportedly reducing his U.S. equity holdings, the progressive billionaire financier prescribes more stimulus and less budget balancing. |
10/7/2010
Voters in states with extreme budget problems will choose between their status quo and very different visions for state government. Here's a speculation on what could happen in New York. |
10/6/2010
Middle class consumers have reduced spending even though their income has stayed essentially constant. That should indicate higher savings or the pay-off of debt. Both would be good for an economy addicted to debt. |
10/5/2010
Chinese leader Wen is diversifying his portfolio of troubled credits by offering to buy Greek debt. Is China becoming the world's manufacturer and banker? |
10/4/2010
Yields for Illinois' bonds now exceed those paid by Mexico, a country that has actually defaulted. Do the high rates Illinois--and other states--pay indicate payment problems ahead? |
10/3/2010
Banks have stopped foreclosure proceedings in several states because they didn't properly review their documents, apparently leading to some improper seizures. Another question of accounting and accountability. |
10/2/2010
Here are questions about responsibility for public pension obligations. From Governing Magazine. |
10/1/2010
While Fannie and Freddie remain financial disasters, the news on the TARP progam is that maybe, just maybe, our children will not be burdened with paying for it. We'll wait for the final, truthful, accounting before we celebrate. |
9/30/2010
An excellent story about Sheila Weinberg frm her alma mater, the University of Denver. |
9/29/2010
A recently published op-ed piece by Bronxville Mayor Mary Marvin illustrates how fast one village's pension costs are escalating. According to the mayor's examples, these costs are growing far faster than even health care costs. |
9/28/2010
One collateral effect of high debt is that servicing it forecloses other options including investments in the future. Here's a story from China that illustrates their push for research that yields international patents--and control of future opportunity. |
9/27/2010
Falling incomes in two of three states can't help but worsen budget shortfalls. We've learned that the recession ended a year ago but that word is apparently slow reaching state capitols. |
9/27/2010
The new fiscal year starts this week but there is no federal budget to guide spending. This is a first in modern times and without a limit there's probably no limit to spending. It's a roll of the dice. |
9/25/2010
Just in time for Saturday's newspapers, the federal government has bailed out the nation's wholesale credit unions. The reason is familiar: sub-prime mortgage trouble. Regulators claim it won't cost taxpayers a penny....this time, for sure! |
9/24/2010
American companies operating overseas often leave their profits abroad because of the taxes on reinvesting in the US. If they brought that money home, the effect would be to expand our economy. Now, one labor leader has 'seen the light' on this. |
9/22/2010
One reason that government deficits exist is because citizens ask for more services than they are willing to fund with taxes. Here's the story of one city that is significantly reducing services to keep taxes low. Cities are interested in what happens. |
9/21/2010
Bonuses are supposed to be paid for top-flite performance so this story is curious. It seems the nation's largest state pension fund paid bonuses for bad performance. We're concerned because truth in accounting also means accountability not entitlement. |
9/21/2010
China is pressing its advantage as the U.S.'s biggest creditor. It is telling us to butt out in the South China Sea. |
9/21/2010
Widely varying estimates of the total US debt and obligations agree on one thing: it's more--a lot more--than the $13.4 trillion the federal government reports. |
9/19/2010
More residential mortgage financing would hardly seem to be a prescription for re-starting the economy. Here's an interesting proposal to refinance every home in America. |
9/18/2010
We've been worried that public pension funds have assumed they would earn much more than they have. This means the pension shortfall may be much larger than it appears. |
9/17/2010
Americans used to pride themselves in self-reliance but now, we've become a nation of entitlements according to this widely reprinted Wall Street Journal article. |
9/16/2010
Former LA mayor Richard Riordan proposes a pension bailout based on accurate accounting. That's nice but shouldn't public entities be expected to account accurately? And what happens if the Feds take on the pensions? Shouldn't the PBGC be in charge? |
9/15/2010
At least twenty states have or are considering a significant change in public sector retirement benefits. In New Jersey, the threat of changes is causing a rush at the retirement office. |
9/15/2010
The U.S. is shipping more than 1% of its wealth to foreign suppliers and competitors every year. The accounting for this policy is beginning to become evident; here's what China is doing with the transfer. |
9/14/2010
The dollar now only buys 83 yen, a record low and clear evidence that the world is tiring of the dollar. Japanese investors in US Treasuries have lost 33% in currency translation in just two years. Here's an interesting history of the yen. |
9/14/2010
The SEC usually does not have authority over municipal bond issuers unless there is fraud. here's an interesting take on that question. |
9/11/2010
When other government entities are discovering the wisdom of transparency, the Federal Reserve seems to be going in the opposite direction. |
9/10/2010
The Securities And Exchange Commission is examining new rules that would prohibit companies from concealing debt. Wow, how timely! What about applying the same rules to government's undunded liabilities, too? |
9/8/2010
This article advises governments to accurately account for guaranteed pension funds. We couldn't agree more with that notion but why stop at pensions? |
9/7/2010
Bond buyers are worried about issuers' financial conditions but are credit default swaps a more proximate threat? These side bets may be putting pressure on the market but would CDSs exist if municipalities' creditworthiness weren't in question? |
9/7/2010
Readers object to the term 'bankruptcy' when referring to states. These objections are valid as there is no provision for state bankruptcies. But what should we call the financial condition of states being evicted from leased facilities? Let us know. |
9/7/2010
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9/6/2010
Spending skyrockets when government tries to overcome markets. The real estate bubble is an example of the US taxpayer assuming risks the market wouldn't. Now, the Feds will let the market set home prices--a first step towards recovery. |
9/4/2010
The Chicago Tribune is exactly right about Illinois--and ever other state--that bases its pension fund calculation on assumed rates of return that are too high. Now,the pension funds are now selling assets, exacerbating the problem. |
9/3/2010
Recent reports tout GM's initiative to recycle everything and become a 'zero waste' manufacturer. Are foreign governments doing the same thing with US dollars? Are they recycling them through the GM IPO? The current owners are worried. |
9/2/2010
But where's the U.S.A.? Both countries have a plan--India exports brainpower and China manufactures everything--but what is the American stategy? We will eventually run out of borrowing power, what then? |
9/1/2010
Economic recovery depends much on the actions of the Federal Reserve. The Congress set out to trim the Fed's power two years ago but the new financial overhaul bill does the opposite. Let's hope Bernanke has read as much about inflationn as depression. |
9/1/2010
Economic recovery depends much on the Federal Reserve. Two years ago Congress wanted to trim the Fed's powers but, instead, has given Bernanke more powers with financial overhaul. Let's hope that Bernanke has read as much about inflation as depression. |
8/31/2010
Europe is preparing for sovereign insolvencies with plans coming from France and Germany. For US jurists tempted to cite European precedents, here's one that might apply to states in deep financial trouble---the concept of 'orderly insolvency'. |
8/30/2010
Economic competitiveness is dependent of education and the U.S. has been lagging the rest of the emerging world. Now a new system for evaluating teachers is gaining traction. One wonders when a system for judging parental involvement will come forth. |
8/29/2010
Deficit spending is justified by the recession and is thought to be temporary...until the economy comes back. In the 1930's prosperity was 'just around the corner' but never came. Are we under the same delusion in 2010? A financial historian opines. |
8/28/2010
Sunday, August 29, at 8:30 a.m. Truth in Accounting Founder & CEO, Sheila Weinberg, will appear on Fox Chicago Sunday. |
8/28/2010
Citigroup, one of the banks bailed out by the American taxpayer, is advising its customers to drop the dollar in favor of the Chinese renminbi. This aligns the bank with the Chinese government's push to make its money a reserve currency. |
8/27/2010
States are seeking compromises with their workers and teachers over health care funding. Chicago area readers will want to catch IFTA Founder Sheila Weinberg on Fox 32 on Sunday morning at 8:30 a.m. |
8/26/2010
Former Senator Simpson lets his tongue wag but are objections just misdirection by those who want to keep the status quo on Social Security? Simpson's earthy style isn't news and, apparently, neither will the debt panel's Rx until after Nov. 2. |
8/25/2010
Americans have long expected their homes to be a good investment and to provide a nest egg. That may be a thing of the past and have important implications for the U.S. economy. |
8/24/2010
Illinois' pension funds are selling assets to make payments. There are buyers. Since these are real assets, the Illinois situation is different than the federal situation. Social Security's assets consist of government IOUs. Who wants them? |
8/23/2010
Institute's analysis of the state's financial report confirms Illinois financial situation is obscene. |
8/23/2010
Today's Wall Street Journal lists the state budgeting tricks the Institute identified in our 2009 publication The Truth About Balanced Budgets: A Fifty State Study. The report is avalable to download at www.truthinaccounting.org
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8/22/2010
Governing Magazine assesses the preparedness of six big state pension funds. |
8/21/2010
Financial troubles in America's biggest state continue. |
8/20/2010
Social Security has reached the ripe old age of 75. Its troubles are clear but there's little agreement about what to do. Here's a suggestion from Forbes Magazine. |
8/20/2010
Entitlements are the primary long-term challenge to the nation's fiscal health. Social Security's supporters have posted this article on the success of the program. Here's the view of the social justice organization "Social Security Works". |
8/19/2010
The Congressional Budget Office has released its Summer Analysis that shows a total deficit of 9.1% of GDP, second only to last year's 9.9%. That means we've added debt of around 19% of GDP in the last two years. The years pass but the debt remains. |
8/19/2010
The Securities and Exchange Commission has come to a settlement with the State of New Jersey. The SEC charged NJ with selling $26 billion in bonds that did not adequately reveal the real financial condition of the state's underfunded pension funds. |
8/16/2010
Chinese finance officials are diversifying their foreign exchange to currencies other than dollars. Is this a result of the Europeans taking a more realistic stand on deficit spending or simply the wisdom of asset diversification? |
8/16/2010
Public sector pensions aren't the only ones in trouble. New accounting rules are exposing troubles in the private sector, too. Organized labor is seeking a public bailout. |
8/14/2010
Germans have apparently managed their recession more effectively than we have in the U.S. Their rebound in economic growth will help balance national budgets quicker. |
8/13/2010
California pensioneer and Candidate Jerry Brown has generated controversy because no one knows the details of his pension service credit. This is a matter of transparency that may have consequences in November. |
8/12/2010
There is a battle looming between pensioneers and taxpayers. |
8/11/2010
Despite Bernanke's assurances, the Fed has begun printing money to buy the Treasury's debt. Mark this date as the start of a period of inflation. |
8/10/2010
Evidence is growing that government is doing much better than the economy at large. The vast expansion of the federal government over the last decade is fueling boom times in Washington D.C. as the rest of the nation shoulders the effects. |
8/8/2010
For the first time ever, Social security is paying out more than it's taking in. Here's one reason why. |
8/6/2010
Guess what? Medicare will cost more than the current statutorial estimate predicts. This compelled an alternative actuarial report. Fascinating, but truly disappointing that the trustees are apparently not permitted to tell the truth! |
8/5/2010
With all the deficit spending, does inflation or deflation loom? The managers of the world's largest bond fund offer their opinions. |
8/5/2010
Better late than never! |
8/4/2010
Voters in Missouri may understand the costs of a huge new entitlement better than their representatives. They rejected a key provision of the health care reform bill by a convincing margin. |
8/3/2010
The IFTA has extensively reported on the tardiness of state Consolidated Annual Financial Reports. Timely information is essential as the states contend with growing fiscal problems but this story reports that state CIOs' budgets are smaller. |
8/2/2010
Fitch Ratings has launched a new commentary on state finances that is available to anyone. Here's a sample and a link to subscribe |
8/1/2010
Municipalities are facing unprecedented fiscal problems. Here's what New York City is doing--an interesting approach. |
7/31/2010
"Private Solutions in Public Sector Pension Plans" conference |
7/31/2010
View her speech. |
7/30/2010
The Institute's Founder appears on C-Span to recommend FACT-based budgeting. Check it out. |
7/27/2010
In this decidely partisan article on China there are two nuggets. First, the observation that the American savings rate has recovered to about half its long term average. Second, the government's deficit spending is nearly $10 per working hour. |
7/27/2010
US aid operations in Iraq spectacularly fail an audit. If 90% of the money supposed to be spent to rebuild Iraq is missing, where is it? The auditors blame it on 'lax oversight'. Is that a euphemism for theft? |
7/26/2010
Pete Peterson and others are saying that our debt to GDP is 60%. Others say the ratio is 90% to 100%. Neither one is right. |
7/25/2010
Teachers have somethng to worry about in Oklahoma--their pensions. Sheila Weinberg and the IFTA have recently analyzed OK and found some conflicts in the funds' valuations. |
7/24/2010
The founder of the Peter G. Peterson Foundation, oft quoted here, gives is view on the US debt situation. |
7/23/2010
After Health Care and Financial Reform, the majority wanted a carbon tax as a 'conservation measure'. They have now given up on the measure, blaming the minority. Didn't they said that Health Care and Financial Reform were dead too? |
7/23/2010
Here's an interesting story about three city employees in Bell California that were fired for salaries that were very high. |
7/22/2010
According to this report from Reuters, the bailout has cost the U.S. some $3.7 trillion, so far. These costs are showing up in the national debt but the estimate doesn't include the new costs health care or financial reform will bring. |
7/21/2010
Maine has a public pension system one legislator calls 'immoral'. It's unsustainable so the state is looking into using Social Security. Seems like going from one scheme to another and watch for benefits to be paid to retirees who haven't paid much in.
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7/20/2010
Energy is a proxy for economic output. China is now using more energy than the US in another sign of China's growing economic power. But the reason may be more due to the differences in the two economies' efficiencies. |
7/19/2010
For years, public pension systems have assumed their investments would earn between 7-8%. Growing evidence shows that the assumption is too high. If so, these pension systems are further under water than previously thought. |
7/18/2010
On the heels of the expanded regulation of U.S. banks, the Bank for International Settlements, in Basel, Switzerland, is bringing out its own set of capital requirements. One wonders if they will apply to Fannie or Freddie; our new law missed both. |
7/16/2010
California's pension costs have been rising at a 38% annual compound rate over the last decade. Willie Brown, one of California's most powerful politicians, was the architect of much of this distress. According to The WSJ's John Fund, he's repented. |
7/15/2010
The Fed's Plan isn't working. Is it possible that uncertainty, not the lack of liquidity, is the problem with the economy? If so, is what used to be called 'pump priming' just inflationary? |
7/14/2010
A Bloomberg survey says that four of five Americans think the Financial Reform Bill will not make the financial markets safer. Nothing in the bill does anything to reign in Freddie or Fannie--which makes them too big to fail--why? |
7/14/2010
The Institute for Truth in Accounting believes that state budgeting practices often obscure financial conditions more than they reveal. Bill Gates goes much further when speaking to the intelligensia in Aspen, calling state budget systems 'fraudulent'. |
7/12/2010
Founder Sheila Weinberg becomes a radio star in Maine. Hear the audio link embedded in the article. |
7/11/2010
Medicare is the largest unfunded liability of the federal government so any reduction in costs will help. Here's an article about efficiency that should keep the rate of cost growth down. They use techniques as old as Henry Ford. |
7/10/2010
Two views on extending unemployment benefits. On one side, a UGA professor and the Soros-funded Center for American Progress recommend automatic extensions. On the other side is economist Arthur Laffer's contrary view. |
7/9/2010
The Congress hasn't fulfilled its most important responsibility of passing a budget. Instead, the leaders have used the existence of the Budget Commission to abdicate their duty until the Commission reports in December. That's well into next fiscal year. |
7/8/2010
Last week,we published an article from Andy Grove on jobs. Here's an alternative view. |
7/7/2010
The Chinese are not happy with the 'Bilateral Investent Treaty' according to this article. It argues that China has benefitted from ignoring the 'Washington Consensus' on trade, pointing to Latin America which did heed Washington and stagnated. |
7/6/2010
One way of dealing with the nation's public debt is to inflate it away. Monetary officials are more concerned with deflation but other parts of the government may be unleashing the forces of inflation. |
7/5/2010
The dismal news on state finances is disheartening but here's an article from a state government insider that suggests we could learn a lot from the Revolution. |
7/5/2010
It's all a Ponzi scheme. |
7/4/2010
The government takes less money in now, but may save money in the long run. |
7/3/2010
Illinois' Comptroller tells the truth about Illinois' budget problems saying 'we/ve stopped paying our bills'. This will begin to happen in other states. |
7/3/2010
Dan Hynes, Illinois Comptroller, says 'We've stopped paying our bills'. This is the first state of many who will eventually have trouble paying their bills. |
7/3/2010
Comptroller Dan Hynes has expressed his opinion that the state's budget is constitutionally suspect yet kept writing checks to cover them. Now, the General Assembly's profligacy has caught up and Illinois becomes the poster child for fiscal dysfunction. |
7/3/2010
The Congress 'deemed' a budget this past week which allows spending without debate on the fundamentals. From a partisan source but unreported elsewhere. |
7/2/2010
Andy Grove offers his views on creating employment in the U.S. The former Intel chief calls for a 'job centric' environment. |
7/2/2010
How can the country operate without knowing the amount of the huge liabilities associated with these programs? |
7/1/2010
The Government Accounting Standards Board has opined on the nature of state and local government pensions. |
6/30/2010
With apologies to the old 'School House Rock' video of how a Bill Becomes a Law, here's a great example of how a bill becomes laden with pork. When introduced, the original purpose cost $30 billion but the final cost has risen to $70 billion. |
6/30/2010
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6/29/2010
Voters will have a say on the amount public employees should conribute to their pensions. In San Francisco, a proposed amendment to the city charter would require city workers to contribute more to their retirement benefits. |
6/28/2010
Yesterday's news clip reported that the effect of government spending may not be as effective as thought. Now, G20 leaders have pledged to cut their deficit spending. Not too much, though, because they still want Keynesian economics to justify spending. |
6/27/2010
Has Keynesian economics been proven to be an illusion? It holds that government spending has a 'multiplier effect' that has justified spending public money--even when the government doesn't have it. Now it appears the 'multiplier' is a mirage. |
6/23/2010
Here is a helpful place to start for those who want to do their own economic research. Answering a question from a reader, columnist Ed Lotterman provides an informative source. |
6/22/2010
Since the late 1960's, Congress has unified Social Security taxes with other revenues. This has provided a significant source of cash to spend on other things. That gravy train has ended according to thoughtful blogger Bruce Krasting. |
6/21/2010
China will let their currency appreciate against the dollar. The move will probably help avoid a trade spat in the short-term and make US exports more competitive where they vie with Chinese products. No word on whether China itself will open. |
6/21/2010
China's decision to let its yuan rise will keep the raw materials it buys relatively cheaper. This could make it relatively more expensive for US consumers. |
6/20/2010
Time Magazine has a story on the sorry state of the states. What's going on in New Jersey will spread to other states as they face their fiscal truths. |
6/19/2010
States are beginning to admit they cannot pay the pensions they have promised to their employees. Some progress so far but most is balanced on the backs of future workers, not yet hired. While helpful, this isn't enough to stabilize state finances. |
6/18/2010
We've posted stories about the statutory debt limit several times but what is the market limit? It's unlikely that we would have a bond auction where nobody came but, interest rates can rise quickly, Greenspan says. |
6/17/2010
There's a huge debate over the value of Chinese currency which many believe exacerbates the current accounts deficit. Secretary Geithner says the value is impeding economic reforms. Official China vehemently disagrees. |
6/16/2010
When the prices of a company's shares fall to less than $1, stock exchanges often delist them. Fannie and Freddie qualify for delisting and their federal regulator has so ordered. One wonders what effect Fannie's well-documented accounting fraud had. |
6/14/2010
Psychologists tell us that human beings deal with loss in predictable ways. This article, featuring the interesting title Deficit Inferno, suggests that these stages also predict how public officials will come to grips with fiscal deficits. |
6/13/2010
Are municipalities heading for bankruptcy? Investors place low probability on that but this article points out that the incentives to seek protection may begin to outweigh the disadvantages. What's missing here are the effects of accounting deficiencies. |
6/12/2010
Is accounting being used to make this New York State pension transaction look like it actually has an economic purpose? If one borrows from a bank and uses the money to pay back an oustanding loan, has anything really changed? Only in New York. |
6/11/2010
China and the US are at odds over the value of Chinese currency. When it's cheap, we buy more and the balance of trade gets worse. |
6/10/2010
In a move likely to be repeated in the near future, Moody's has downgraded Illinois' debt. Watch for the same thing in a state near you. |
6/9/2010
We've been concerned with the shape of public sector pensions but what's the story in the private sector? Maybe not much better and the Pension Benefit Guaranty Corporation isn't fully funded either. |
6/8/2010
Health care has become the largest single cost in several states. Whether the effect of federal mandates or local generosity, these entitlements are growing faster than other programs. New York is beginning to react and slow growth. |
6/7/2010
The nation's weathiest state isn't immune to the effects of spending more than it is taking in. |
6/3/2010
It is the best of finances and the worst of finances... With apologies to Charles Dickens, the comparison of two Washington DC suburban counties show one in good financial shape and one is a basket case. |
6/2/2010
When Social Security was created, the average life expectancy was less than the retirement age. Since then, we've remarkably extended longevity. One solution for Social Security's fiscal problems is to raise the retirement age. How much is too much? |
6/1/2010
Just as Congress authorizes a public health care system in the US, our nothern neighbors are having second thoughts on theirs. Costs are unmanagable, even though the benefits up there do not measure up to even the lowest standard of care, down here. |
5/31/2010
Armies often prepare to fight the last war. This may be the case in Europe, where central bankers are ever-vigilant to guard against inflation. Policy is designed to arrest inflation but what would happen if the lurking danger is deflation? |
5/29/2010
The Bank for International Settlements blames cash basis accounting as one of the accelerators of the consequences of the real debt the US has piled up. The point is that a 'no confidence' vote by markets will come sooner than anyone thinks. |
5/28/2010
Weak revenue is forcing spending cuts, layoffs and furloughs. But cost-cutting measures may not be enough to keep the town of Antioch's books balanced.The economic climate in California is so bad that many towns are discussing bankruptcy out loud. |
5/27/2010
If inflation occurs when too much money chases too few goods, what's the opposite? If the money supply drops, shouldn't prices drop too? So, if the M3 money supply drops faster than it did in 1929-1931, should we expect price depression? |
5/26/2010
Our credit rating is 'triple A'--for now--but the rating agencies are again threatening to lower it due to deficits and debt. If the score falls, interest rates will rise and the deficit will automatically increase. How many disater warnings do we need? |
5/25/2010
State and local government find themselves in distress because of contracts with their employees. Teachers are a big part of this and here's a story on the controversy. One indicator of the problem may be the six hour 57 and one half minute work day. |
5/24/2010
The French are set to help solve their social insurance problems by raising the retirement age from 60 years to a new age. Intense speculation surrounds the decision. Raising the Social Security Retirement age is one solution for the U.S. problem, too. |
5/23/2010
The Social Democratic model that Europe has enjoyed since the end of the Second World War is feeling the strains of economic realities. The American economy may face the same challenges sooner than we think given the size of federal and state obligations. |
5/22/2010
Errors, misunderstandings & wishful thinking are piling hidden new costs onto New York’s public pension system every year, worsening the state’s current fiscal crisis. And the problem is not just in New York. |
5/21/2010
Beijing has published the remarks of GWU Professor David Shambaugh who believes that China should be treated with 'true equity'. Overall, he's optimistic on Sino-American relations. |
5/20/2010
Short term interest rates are very low and in response, the Treasury has shortened the maturities on the nation's debt. That means the debt must be rolled over, frequently. We are in peril if the rates must be raised to sell the new paper. |
5/19/2010
Senator Kohl of Wisconsin proposes that only a few 'tweaks' are required to fix Social Security. |
5/18/2010
The continuing saga of the demise of European social policy and associated politics is manifesting in the value of the Euro. That's good news for the dollar but as Angela Merkel says, it just buys time. |
5/18/2010
State has not issued the financial statements for FYE 6/30/09 |
5/18/2010
On Monday it was $12,974,895,930,216.56. |
5/17/2010
The Greek crisis is threatening to spread. Angela Merkel thinks the bail out is only a stop-gap measure unlikely to solve the problem. Will it spread? |
5/17/2010
"We need mathematicians in Springfield," said Gov. Pat Quinn at a recent speech before fellow Democrats in Winnetka, Ill. |
5/17/2010
"We need mathematicians in Springfield," said Gov. Pat Quinn at a recent speech before fellow Democrats in Winnetka, Ill. |
5/16/2010
The Germans have some experience bailing out failed socialist states. Their experience with East Germany's problems give weight to their opinions on the PIIGS and what should be done. Moreover, If the EU can't agree, why should the U.S. participate? |
5/15/2010
The president of the Kansas City Federal Reserve Bank has resevations about low interest rates. He's interviewed here but one must ask 'If rates went up, what proportion of short term federal debt would roll into higher rates and what of the budget?' |
5/14/2010
England's Daily Telegraph reports that The Bank Of England finds that Greece's troubles also exist in the USA. They also believe the EU has the same weaknesses as pre-federal America. |
5/13/2010
Portugal's Prime Minister Jose Socrates has noticed the Greek crisis and taken preemptive action. Among the plans are to increase the value added tax by 1% to 21%. Will we soon be seeing an American equivalent for the same reasons? |
5/13/2010
Quotes from Treasury, OMB and CBO about the bogus Trust Funds |
5/12/2010
Defense contractor Northrup has had enough of California and has packed up and moved to Virginia. Here's a story that should be required reading for state legislators considering raising taxes to fill budget gaps. |
5/11/2010
The bail-out of government sponsored enterprises continues with a requested cash infusion that will bring the total to more than $145 Billion. Analysts expect that at least $50 billion more will be needed. |
5/10/2010
Michael Barone analyzes the results of last week's elections in Britain. The take-away may be that many voters have changed their vote to reflect disapproval of the out-of-control spending occuring in both countries. |
5/10/2010
Here are a couple of recent articles featuring information or quotes from Sheila Weinberg, the Institute's founder. |
5/9/2010
Many analysts believe that among the primary causes of the financial meltdown were Fannie and Freddie's business practices. The proposed financial regulation bill does not address these GSE's evident shortcomings. This will cost future taxpayers plenty. |
5/7/2010
GM's recent fib about paying back its TARP debts has moved from accounting to accountability of the company's owners in Washington. |
5/6/2010
The Financial Reform Bill has surprises for consumers. In one little reported feature, the feds will begin collecting consumers' financial transactions and be able to data mine it. This places citizens at the disposal of government, not vice versa |
5/5/2010
Is Los Angeles on the verge of bankruptcy? This article makes the case that it is and point to accounting estimates as a big part of the problem. The authors, including a former mayor, suggest remedies for LA where they think is 'the best place to live'. |
5/4/2010
The agency that guarantees failed private sector pension plans has failed its audit. Citing 'material weakness' in its financial controls, the Pension Benefit Guarantee Corporation gets a qualified opinion from its inspector general. |
5/3/2010
Greeks are preparing for 'violent modernization' as they accept the biggest sovereign bail-out ever. The biggest price will be paid by the public sector where wages will be frozen and pensions cut. Is there a lesson for states coming from Athens? |
5/2/2010
Lehman wasn't bailed out but that path may have been cheaper than cost of administering its bankruptcy. Health care and lawyering are the only two industries that don't have a learning curve which reduces costs as activity increases. |
4/30/2010
See the numerous comments about this comparison.
From: Sheila - This reminds me of the comparison we made of federal accounting and Enron accounting. We will re-post that comparison soon. |
4/29/2010
The Senate will debate the 1.200 page "reform" bill now that the Republicans have dropped their filibuster. Here are the four largest points of contention. Bailouts of 'too big to fail' financial institutions appears to be on both parties' minds. |
4/29/2010
Harrisburg PA is considering a Chapter 9 bankruptcy as a strategy to survive financially. As the financial miasmas in which cities find themselves proceed, bankruptcy is becoming a more likely option. Will states soon ask for their own bankruptcy law? |
4/28/2010
Chairman Bernanke says the budget deficit is on an 'unsustainable path'. Coincidently, the president commissions a blue ribbon commission made mostly of politicians to suggest new taxes the president knows are politically toxic. |
4/28/2010
Clinton says states are playing accounting tricks to balance their budgets. |
4/27/2010
California-and many other states-have accounted for their pension obligations assuming high rates of return. New research questions these calculations,finding the unfunded liabilities much higher than previously thought. Fund managers aren't buying it. |
4/26/2010
Illinois State Rep. Jim Watson has proposed a Fiscal Charter that make a lot of sense for Illinois and other insolvent states. It includes The Truth In Accounting Act that the Institute helped co-author. There's a link to the bill, below. |
4/24/2010
Regulating banks is a central social concern. To ensure banks that are 'too big to fail' don't, bankers have imposed all sorts of rules. Before we push the US system into regulators' hands, we should investigate past regulatory failures, like these. |
4/24/2010
Get used to 'Rebalance' and 'Consolidate' as International Monetary Fund code words for devaluation and higher taxes. The men in black from the IMF usually dispense their advice to third world bankrupts but now they're targeting the US and our friends. |
4/22/2010
Governing Magazine, the journal of record for state and local officials, takes on the VAT tax. |
4/21/2010
Rick Skiba is one of the original supporters of The Institute for Truth In Accounting. When he was called back to his old public agency, we missed him. What he found in the books was shocking and shows the value--and risks--of forensic audits. |
4/21/2010
No sentient person believes the timing of the SEC's suit aginst Goldman Sachs is a coincidence. What's missing is any new regulation of the biggest problem in the financial markets, government sponsored enterprises Fannie Mae and Freddie Mac. Why not? |
4/20/2010
Financial observers are torn over the schadenfreude of bailout beneficiary Goldman-Sachs getting into SEC trouble and the over-reach of federal regulators. This article makes the point that the SEC's legal theory may be a stretch. |
4/19/2010
Chinese editorialists make the point that China is "piling up greenbacks" and believe they should stop. An interesting fact from the article--China has a trade deficit. Hard to believe from this vantage but U.S. policymakers should pay attention. |
4/18/2010
The problem with pensions is no longer a future concern. Illinois has just raised its public retirement age to 67 and capped benefits. That's a good step for 35 years from now but what about the accrued benefits? Here's the flavor of local coverage. |
4/16/2010
Give me your guess on when you think it will reach $13 T. |
4/16/2010
Two reports on the Jobs Bill. As compassionate as it is, distinguished economist and Democrat advisor Larry Summers says the new law may help keep unemployment high. |
4/15/2010
We'll resist the temptation to post a tax story today and post this on on the banks. From the Huffington Post, this speculates that the nation's big banks weren't much better than Bernie Madoff. |
4/14/2010
Washington appears to be counting on higher taxes, including a VAT tax, to pay for its programs. Americans are becoming concerned that taxes are too high now, even before large increases kick in next year. And, we think more of us should pay some taxes. |
4/12/2010
Is Congress in denial? Reports here say that the budget is too painful to put on public display...during an election year. Spending beyond our means is America's greatest challenge. If you want to solve a problem, you first have to acknowledge it exists. |
4/11/2010
Paychecks for municipal workers are rising faster than taxpayers' ability to pay. In the nation's capitol, some teachers will earn as much as $150,000 even as the quality and quantity of high school graduates falls |
4/9/2010
From our vantage, it's almost inconceivable that China would have a trade deficit. The truth is, they buy lots of commodities and with a rising economy, consumer goods. They are probably paying for those imports with their dollar hoard. |
4/9/2010
Here's The Institute's Sheila Weinberg on CBS Channel 2 Chicago's Monsters & Money in the Morning. |
4/8/2010
Using realistic earnings assumptions exposes California's pension problem as far worse than previously reported by the pension funds' managers. California is not alone; other states have similar problems for similar reasons. |
4/7/2010
Almost half of all Americans do not pay income taxes. In 2007, median household income was $50,233. This article reports that a family of four can earn as much as $50,000 and pay no taxes. This would appear to mean nobody pays taxes, on average. :) |
4/6/2010
Earnings announcements required by securities laws upset membes of congress enough for them to call for hearings. The reason? Firms must actually calculate the full, present value effect of new laws. Apparently, Congress does not understand this idea. |
4/6/2010
Earnings announcements required by securities laws upset members of Congress enough for them to call for hearings. The reason? Firms must actually calculate the full, present value effect of new laws. Apparently, Congress does not understand this idea. |
4/5/2010
Conventional wisdom foresees a Value Added Tax. Since it’s regressive, progressives will tinker and politicians will sell influence. If we’re to have a consumption tax, why not the ‘Fair Tax’? Economists say it will grow the US fastest. |
4/4/2010
Exchange rates between the dollar and the Chinese yuan are the subject of great controversy as many believe China is artificially holding its currency's value lower than its intrinsic vaue. Is the Treasury Secretary abbeting this problem by delay? |
4/3/2010
Under the cover of a nuclear summit, Hu Jintao will visit the U.S. next week. More interesting may be any talks he has with treasury officials. |
4/2/2010
China considers a national social security tax to redistribute income. If they do not already redistribute income why do we call them Communist China? |
4/1/2010
A staffer for L.A's mayor says 'Unions have priced themselves out of a job'. Struggling states and cities are renegotiating rich public employee contracts for relief with some success. |
4/1/2010
New All-Time High!!! |
3/31/2010
Here's The Institute's Sheila Weinberg on CBS Channel 2 Chicago's Monsters & Money in the Morning. |
3/30/2010
Desperate states are quickly grabbing cash in ways that signal there's something systemically wrong. Courts are curbing these schemes but the trend is disturbing. |
3/29/2010
Goldman Sachs cynically bet against the greenback after influencing the Feds to get them a better AIG settlement. It's a wager that's proven to be a bad deal for these masters of the universe. |
3/27/2010
For the first time in memory, investors are selling municipal bonds on credit concerns. Also, several private companies sold their debt for better rates than the U.S. government got last week. Are markets 'ahead of the curve' and what's their message? |
3/26/2010
Diminishing interest is U.S. debt is beginning to push rates up, regardless of Bernanke's approach. |
3/25/2010
The Social Security Administration is beginning to cash those IOUs that make up their 'trust funds'. This was not supposed to happen until much later in the decade. Now there's talk of 'strengthening finances'. That sounds like a tax increase. |
3/24/2010
Trillions in local government pensions are changing the primary object of local government from filling potholes to paying pensions. Municipalities can escape these debts by declaring bankruptcy but states cannot. Do we need a new bankruptcy chapter? |
3/22/2010
'Health Care' was sold on reducing US debts. Not likely. Besides cooking the CBO estimate, Congress is salvating over 4 years of taxes without having to provide benefits. Don't believe it? Remember the government's handling of the Social Security trust. |
3/22/2010
Truth In Accounting Issues New Jersey’s “Financial State of the State” |
3/21/2010
National health care advocates are happy to accept the Congressional Budget Office's analysis. But this one is filled with uncertainty and breaks the cardinal accounting rule of matching expenses (6 years) with taxes (10 years). It's budget fraud. |
3/20/2010
Now that the government owns GM, it should be a reliable customer. Not so for tool makers waiting to be paid. These small businesses are now seeking TARP relief to stay afloat. If trickle down economics aren't good, how about trickle down bankruptcy? |
3/19/2010
The federal government's web site is always an amusing visit if it weren't so devastating for the next generation who will have to pay for it. |
3/18/2010
Illinois may be in the worst financial condition of any state. Its politicians have so stretched the definition of what can be constitutionally spent that the state has accumulated a $100 billion debt and will be 47% short on this year's budget. |
3/17/2010
With the state's experience with its own form of public health care, Massachusetts' treasurer says federal aid has propped up the state's plan so Congress could pass a national plan. Tim Cahill fears the plan on the table will 'bankrupt' the USA. |
3/15/2010
Aging infrastructure will be competing with pensions for local tax revenues, soon. Kibitzers at this recent water main break highlight the coming controversy. |
3/13/2010
This eye-opening story from Bloomberg shows that the truth about public pensions is beginning to become evident. Years of neglecting their funding combined with false and misleading assumptions by public officials have brought financial disaster. |
3/12/2010
The Chinese discuss the 'China Model' and reasons for their three decade march from a planned economy to a market-based manufacturing powerhouse. |
3/11/2010
Institute for Truth in Accounting Issues Guide to Honest Budgeting |
3/11/2010
As developed countries ponder their accumulated debts, politicians are looking for ways to pay them. The Economist advises honesty about the sizes of the debt. We couldn't agree more. |
3/10/2010
One of the reasons all three levels of government are in financial trouble can be explained by their payroll costs. Unlike the private sector, they haven't downsized to reflect lower revenues. Worse,states aren't honest about their pension costs. |
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. |
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. |
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.
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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! |
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. |
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. |
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. |
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. |
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. |
2/26/2010
The CEO of Hara Energy tells Forbes why passing Cap and Trade will help his company. Wouldn't a valuable service sell without the hand of government? Apparently not, GE has entered the business, a sure sign of corporatism. |
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? |
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! |
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? |
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. |
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. |
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? |
2/19/2010
Truth in Accounting Act introduced in Illinois |
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. |
2/18/2010
Institute Issues Revised Illinois' Financial State of the State. |
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. |
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. |
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. |
2/12/2010
"Domination of the FASAB process by federal members is incompatible with board independence," says former board chair and one other member. |
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 |
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. |
2/9/2010
The unlimited guarantees are supporting the two government sponsored entities. There is no evident exit strategy. |
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. |
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. |
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. |
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. |
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. |
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. |
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. |
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. |
1/31/2010
How can you determine if your government's budget is truly balanced? |
1/30/2010
Sheila Weinberg discusses the concerns of the Institute during an interview by NOCW. |
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. |
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. |
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. |
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 |
1/26/2010
David M. Walker, former Comptroller General of the U.S. book discussion "Comeback America," Union League of Chicago, February 8, 2010, 11:30 Luncheon. Institute for Truth in Accounting as Event Partner. |
1/25/2010
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1/25/2010
Does the federal government owe our seniors the Social Security and Medicare benefits they have been promised? |
1/25/2010
America'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. |
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? |
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. |
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. |
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. |
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. |
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". |
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! |
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. |
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? |
1/15/2010
Amity Shlaes from the Council on Foreign Relations looks to culture and markets to explain our economic prospects. |
1/14/2010
The administration announces plans to tax big banks to recover the money spent to bail out the financial sector. |
1/13/2010
Review Sheila's future engagements. |
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? |
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. |
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? |
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. |
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. |
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. |
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? |
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. |
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. |
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. |
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? |
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? |
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. |
12/29/2009
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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. |
12/27/2009
Hedge fund manager Andy Kessler's different view on how to spend--or maybe invest--in our future. |
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? |
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. |
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.
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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. |
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? |
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. |
12/20/2009
The meeting ended on Friday in chaos. Here's what the conferees did manage to agree on. |
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. |
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. |
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. |
12/16/2009
27,280 unique visitors went to truthin2010.org yesterday |
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. |
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. |
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'. |
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. |
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.... |
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. |
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. |
12/6/2009
One of the best on the dollar's situation with an excellent historical seasoning. Just the thing for a Sunday afternoon. |
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. |
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. |
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. |
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. |
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. |
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 |
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. |
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. |
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. |
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. |
11/20/2009
See Weinberg's appearance on Chicago Tonight |
11/18/2009
Regulators want to raise taxes to get greater penetration of information technologies and broadband. How does that work? |
11/17/2009
As president Obama visits, Chinese bankers explicitly accuse the U.S. of inflating its way out of its debt. |
11/16/2009
A report on the fate of TARP bailouts from The Huffington Post. |
11/15/2009
President Obama is likely to be interrogated like a failing debtor by America's largest creditor. |
11/15/2009
LWV-Barrington Event at Cuba Township Community Room - 28000 West Cuba Road |
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. |
11/13/2009
As any homeowner with too many obligations knows, debt reduces options. The same is true for nations. |
11/12/2009
A list of the disaster states in the most trouble from The Pew Charitable Trust. |
11/12/2009
The Institute's Sheila Weinberg will make another of her appearances on Chicago's WTTW Channel 11 at 7:00 CST this evening. |
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. |
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. |
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. |
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. |
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. |
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? |
11/4/2009
The sixth installment of the series. |
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? |
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. |
11/3/2009
Part Five in the ongoing series from Investor's Business Daily. |
11/2/2009
Federal Reserve Chairman Bernanke comes under attack for fundamental misjudgments in Forbes. |
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. |
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. |
10/31/2009
The next installment... |
10/30/2009
Part Three of the economist's views on the realities of health care. |
10/29/2009
Our link to Part Two of Thomas Sowell's thoughts on health care. From Investor's Business Daily |
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. |
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. |
10/28/2009
The Institute and Sheila are quoted in this story about an initiative to require the federal government to disclose facts about its financial sustainability. |
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. |
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. |
10/25/2009
The advocates of dumping the dollar have great conflicts that make it difficult for them. Irwin Stelzer explains. |
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. |
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. |
10/21/2009
Paul Volker's financial acumen collides with The White House's vast banking experience. |
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. |
10/19/2009
Sheila Weinberg comments on the legislation Gov. Pat Quinn signed Sunday to fully fund the Illinois Monetary Award Program, or MAP. |
10/17/2009
Monetization looks ever more likely as the deficit comes in at $1.4 Trillion. |
10/16/2009
October 15 unique visitors to our website hits 24,455. |
10/16/2009
We've worried about the dollar for a long time but, from The Economist,here's some alternative views. |
10/15/2009
An erudite article from The City Journal that confronts inflation on a moral plane. Long, but worth the read. |
10/15/2009
Watch Video of Truth in Accounting's CEO WTTW's Chicago Tonight. |
10/14/2009
Some thoughts on the declining dollar. |
10/13/2009
The Saudis want compensation for lost revenues due to climate change treaties. |
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. |
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. |
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. |
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? |
10/9/2009
Tom Hudson, First Business, interviews Mr. Nelson about the current debt and the outlook for the future. |
10/9/2009
Eventful Summer Leads to Busy Fall |
10/8/2009
One of the Institute's main concerns is the value of the dollar. This Wall Street Journal article shows why. |
10/7/2009
Nation's true debt reached more than $71 trillion at the end of the gov't fiscal year. |
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. |
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. |
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. |
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. |
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. |
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. |
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. |
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? |
9/29/2009
Paul Volker, the Fed Chief who whipped inflation, offers a dark view of the economy and of America, generally. |
9/28/2009
From , here's a shout out to exceptional transparency advocates and their projects. This is a list to save and keep. |
9/28/2009
From The Los Angeles Times salutes transparency heros. This is a clip and save list. |
9/28/2009
The Los Angeles Times salutes several transparency heros. This is a clip and save list. |
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. |
9/24/2009
Market Watch distinguishes between private and public pensions. |
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. |
9/23/2009
According to this article, Americans believe that half the money that flows to the government goes...where? |
9/22/2009
We are already $72.5 trillion in debt. |
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. |
9/19/2009
Warning! Our deficit will not be $1.8 trillion this year. It will be more than $12 trillion. |
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. |
9/18/2009
A good analysis of the competing interests in the Senate Finance Committee's bill. From the The Washington Post. |
9/16/2009
The first story on the last prescription for the entitlement plan. From The New York Times. |
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. |
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. |
9/13/2009
Democrats say they will move on health care--the largest entitlement ever--with or without Republicans. |
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. |
9/11/2009
Sheila Weinberg will speak "at the bean" in Millenium Park on Saturday--please join her! |
9/11/2009
The effects of the real estate collapse may not be over, despite encouraging signs in the resale market. |
9/10/2009
An interested party asked me the following questions. |
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. |
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. |
9/8/2009
Here's a reference to the Institute's work on state accounting and finances. |
9/7/2009
The Fed is printing money to buy Treasury bonds. This is alaming to the nation's biggest creditors, including China. |
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. |
9/5/2009
The Institute's friend, David Walker, is the subject of The Wall Street Journal's weekend interview. |
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? |
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? |
9/2/2009
The residual problems from the banking crisis have yet to be seen according to this opinion. |
9/2/2009
Testimony at the GASB Hearing Recommends Recognizing Accrued Pension Liabilities |
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. |
8/31/2009
The article notes: . . (S)ome outside observers to question the independence of the board. For example, the CEO of the Institute for Truth in Accounting said at an April 2009 FASAB public hearing: “This seems like a form of jury tampering.” |
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. |
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 |
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? |
8/25/2009
Should A Liability Be Reported As a Liability? |
8/25/2009
Next year's census promises some good news for the Sunbelt and bad news for the Rustbelt. |
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. |
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. |
8/20/2009
The Institute for Truth in Accounting raises some important questions regarding the leasing of the City of Chicago's parking meters. |
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. |
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. |
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. |
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. |
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. |
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? |
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. |
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? |
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. |
8/10/2009
Where Will We Get the Money To Pay for the Bail Outs and To Reform Health Care? The Government is printing money, why don't you? |
8/9/2009
Freedom Rings Radio hosted by Kenneth John is a live call-in talk show with guests heard every Monday morning at 9AM CST on WRMN 1410 AM, Elgin, Illinois |
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. |
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. |
8/7/2009
Watch our new videos on YouTube!!! |
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'. |
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'. |
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. |
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? |
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. |
7/31/2009
Your share of the nation's federal debt increases by $30,000 per person |
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. |
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. |
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. |
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. |
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. |
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? |
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'. |
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. |
7/24/2009
Here is how the GAO reported on spending in Mississippi |
7/24/2009
Here is how the GAO reported on spending in Mississippi |
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. |
7/23/2009
How much financial trouble is your state into? Unfortunately, nobody knows. |
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 our future. |
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. |
7/22/2009
Our friend David Walker gives his views on the fiscal prospects of the federal takeover of 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 |
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. |
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. |
7/17/2009
Illinois $82.2 Billion in the Hole |
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? |
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. |
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? |
7/15/2009
The Institute's founder and CEO will appear on Chicago Tonight that clears on WTTW Channel 11 in Chicago. This is a great opportunity to tune into Chicago's "Window To The World". |
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. |
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. |
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. |
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. |
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? |
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. |
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. |
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. |
7/5/2009
Local property owners are asking for assessors to truthfully value their homes and businesses. That's straining local budgets. |
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. |
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. |
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. |
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? |
6/29/2009
Richard Lorenc's article can be seen here: http://gapersblock.com/mechanics/2009/06/22/chicago-group-reveals-the-trut/ |
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? |
6/28/2009
Bloomberg quotes dollar skeptics. |
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. |
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'. |
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. |
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. |
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. |
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. |
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. |
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? |
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. |
6/18/2009
The welfare state is showing its limits and the Golden State wants to hand out less gold. |
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. |
6/15/2009
With all the bail-out money sloshing around it's bound to show up in unusual places. |
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? |
6/13/2009
Our own congressional representative Mark Kirk's remarks on the truthfulness of Congress' numbers. |
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. |
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! |
6/10/2009
The administration has caved on its plan to control some |
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. |
6/9/2009
The Wall Street Journal asks if Citigroup should be allowed to fail. |
6/8/2009
A blog written by IFTA's founder & CEO appears on Assoc. of Gov't Accounting website. |
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. |
6/7/2009
Here's a worthwhile video showing the Congress asking questions of the Fed's Inspector General. It's an eye-opener. |
6/7/2009
A recent congressional investigation finds the Fed's Inspector General essentially clueless. |
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. |
6/5/2009
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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. |
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. |
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. |
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. |
6/1/2009
Bloomberg reveals the characters who will oversee the once-unthinkable GM bankruptcy and defend the taxpayers' |
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. |
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. |
5/26/2009
The Orange County Register recommends Chapter 11 for California. We should consider the source because Orange County did declare bankruptcy. |
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. |
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. |
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. |
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? |
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. |
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. |
5/17/2009
Sveral articles and views on American solvency's biggest threat--entitlements. |
5/16/2009
How, then, does he recommend a spending program that requires borrowing ten trillion dollars over the next decade? |
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. |
5/15/2009
An excellent overview of the foreign holders of U.S. debt from The China Daily. |
5/15/2009
THIS WEEK'S SHOW
Sheila Weinberg
Sunday, May 17th - 8AM - 9AM
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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. |
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 |
5/11/2009
Two Possible Nightmare Scenarios. Please let us know what you think. |
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. |
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. |
5/8/2009
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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. |
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. |
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. |
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. |
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. |
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 |
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. |
4/30/2009
Unique visitors hit an all time high of more than 180,000 in April. |
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. |
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. |
4/27/2009
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4/27/2009
How can your state be balancing its budget, but going further into debt? |
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. |
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? |
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. |
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? |
4/19/2009
The Institute has long accused governments of using |
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. |
4/17/2009
Does this scare you? |
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. |
4/15/2009
That's for each man, woman and child in the U.S. |
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.
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4/14/2009
Why don't we receive donations online? |
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? |
4/13/2009
Federal Accounting Standards-Setting Process: Stacked Against the Public |
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? |
4/9/2009
It isn't a pretty picture and it is only getting worse. |
4/9/2009
The Wall Street Journal reports several states plan to coerce more revenues from their citizens as their economies falter. |
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. |
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! |
4/6/2009
The Governmental Accounting Standards Board (GASB) has issued an Invitation to Comment (ITC) on Pension Accounting and Financial Reporting. |
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. |
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. |
3/31/2009
What happens when an underwater debtor mails in the keys and the bank says |
3/30/2009
What defines a great depression? Few remember it because if one was 20 years old on |
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. |
3/27/2009
Low oil prices may be evaporating as the industry fails to reinvest. Can producers afford to |
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. |
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? |
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. |
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. |
3/23/2009
Forbes reports on the Treasury Secretary's plan to fix the banks' problems. |
3/22/2009
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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. |
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? |
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? |
3/18/2009
The Governor continues using political math to balance the budget |
3/17/2009
Treasury Puts the Pedal to the Metal on Borrowing |
3/17/2009
Bail-outs or bankruptcy? Get ready for the next wave of financial troubles in public employee pension funds. |
3/14/2009
Shane Osborne, Nebraska's Treasurer, recommends transparency to the federal government. |
3/13/2009
The New York Times reports the Chinese Premiere is worried about that country's trillion dollar investment in U.S. Treasuries. |
3/12/2009
The Financial Times has an expansive series on this economic system and who is important in its future. |
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. |
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. |
3/5/2009
How do we explain this massive amount to our readers? Please submit your ideas. |
3/4/2009
Themes from academics who recently collected their best advice |
3/4/2009
Bloomberg reports Chicago's transit system is in trouble and speculates it will foment another trillion dollar bailout. |
3/3/2009
Underfunded pension plans are not just the states' problems as this survey of our hometown corporations shows. |
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? |
3/1/2009
Is the third time the charm? |
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. |
2/24/2009
Or is that Down, Down We Go?
Daily Visitors to Truth in 2008 are increasing at an astronomical rate. Unfortunately, our federal debt is also increasing at an astronomical rate.
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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. |
2/21/2009
The China Daily has an excellent graphic showing the owners of U.S. obligations. |
2/20/2009
Wonder where all that money we send to China is going? We may be seeing where, this week. |
2/18/2009
The effect of politics on the economics of the bail out according to Holman W.Jenkins |
2/17/2009
For years The Institute for Truth in Accounting has been warning about governmental fiscal meltdowns. Most folks weren't concerned thinking |
2/14/2009
After the F.D.I.C. moves in, what happens to the questionable assets that cause banks to fail? |
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. |
2/11/2009
Ever wonder which countries are buying up all the debt the Treasury issues? Here's a list. |
2/9/2009
Economist John Taylor's view of the government's role in the financial crisis. |
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. |
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 |
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. |
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. |
1/30/2009
The Institute for Truth in Accounting is Here to Help Get Us Out of Our $100 Billion Hole |
1/30/2009
IFTA Founder/CEO to talk about the challenges facing Gov. Quinn with the budget. |
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. |
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. |
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. |
1/27/2009
An interesting historical perspective on the role of cental banks and panics. |
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. |
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. |
1/25/2009
Our friend Terry Savage's SunTimes column on Illinois public employees' pension situation |
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 |
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. |
1/19/2009
Clive Crook from The Financial Times has a quartet of suggestions for solving America's fiscal crisis. |
1/19/2009
Clive Crook of The Financial Times provides a quartet of suggestions from a real welfare state with predictable recommendations. |
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. |
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 |
1/15/2009
Send $194,400 To Washington Today |
1/13/2009
Years of promises for benefits far in the future and a stock market melt down are challenging governors and mayors. |
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. |
1/9/2009
Hat Tip to Lt. Col. Larry Felts USAF (Ret.) |
1/8/2009
As Nixon opened China, will it take a liberal Democrat to confront the entitlement problem? |
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. |
1/5/2009
What happened to the plan to make Americans pay their |
12/31/2008
Trends often start in California; here's one that will not be welcome in the rest of the nation. |
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. |
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. |
12/28/2008
Our friend Paul Jacob on the orgy of debt: |
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! |
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. |
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 |
12/22/2008
Mortgage applications are keeping lenders busy inspecting applicants' credit more closely, this time. |
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. |
12/15/2008
The New York Times has a few questions for Treasury Secretary-Designate Geithner.
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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! |
12/11/2008
Congressional investigators are looking into Fannie and Freddie but what sort of accounting can we expect? |
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? |
12/9/2008
Car dealers often use |
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. |
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? |
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 |
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? |
11/25/2008
An article supporting Mark-to-Market accounting from City Journal. |
11/25/2008
Two of our favorites, Brian Wesbury and Robert Stein's take on Obama's picks for the economic team. |
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? |
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. |
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. |
11/18/2008
Today, the heads of the car companies, already the recipients of $25 billion, are making their case to Congress for more aid. With all the attention focused on Washington, it's easy to forget many states are in financial distress, too. |
11/14/2008
Here is Congress' Joint Economic Committee's opinion on the meltdown. Hat tip to Pete Speer for the lead. |
11/13/2008
This article in Forbes thinks it's as much as $5 Trillion. |
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. |
11/11/2008
The federal government is borrowing at the rate of $500 billion a month. Are we too big to fail? |
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. |
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. |
11/7/2008
The fast action by the Congress proves the old adage about acting in haste. |
11/4/2008
For those of us who worry about the effects of entitlements, this opinion from David Brooks is right on target. |
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. |
11/1/2008
Thirty Seven Congressional and Three Senate Candidates Commit to
Telling the Truth about Our Nation’s Debt
|
10/31/2008
We're partial to Illinois stories but this one probably applies to many cities and states. |
10/31/2008
More problems from the Land of Lincoln's most progressive city. |
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% |
10/29/2008
Many will mandate new spending when states are already fiscally challenged. |
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. |
10/25/2008
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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. |
10/23/2008
Mark-to-market is the accountimg principle of valuing assets at today's market price. Many blame the rules requiring mark-to-market as a contributor to the melt down. Here's a powerful defense of the principle. |
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. |
10/21/2008
The |
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. |
10/18/2008
That's the opinion of Milton Friedman's 92 year old co-author, Anna Schwartz |
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? |
10/15/2008
Deficit reaches $454.8 billion.
True Debt reaches $57 trillion.
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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. |
10/14/2008
The Institute offers any blogger or web site administrator the free use of our debt counter. Here's one site which does. |
10/14/2008
Fed Chairman Bernanke's plan to restore confidence appearing in today's "Wall Street Journal". |
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. |
10/10/2008
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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. |
10/7/2008
IFTA Founder and CEO Sheila Weinberg comments on the bail out on Tom Hudson's "First Business" program |
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. |
10/5/2008
Many observers of the financial crisis have suggested suspending mark-to-market accounting rules because they have exacerbated the situation, requiring a bigger bail out. Here's a well-reasoned, contrary view. |
10/4/2008
If you haven't seen the movie, here's the next best thing. |
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? |
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. |
10/2/2008
Forbes provides an explanation of the bail out. |
10/1/2008
By Sheila Weinberg. Our country is heading toward a super-sub-prime crisis. It may be just a matter of time before the federal government hits fiscal foreclosure. |
9/30/2008
While the Congress deliberates the financial bail out, they quietly passed an automobile bail out. |
9/30/2008
Wise observations on the curent economic conditions. |
9/30/2008
Our friend Terry Savage predicts the consequences of the bail out flame out. |
9/29/2008
Here's a one-page summary and a six page section-by-section analysis from Congressman John Linder's web site. |
9/29/2008
Now that the federal government has bailed out Fannie and Freddie, who's going to bail out the
federal government?
|
9/28/2008
Speaker Pelosi's press release explaining the specifics of the bail out and much more. |
9/27/2008
From London, New York and Los Angeles, the why, the what and the how of the bail out. |
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". |
9/25/2008
Here's a range of stories ranging from the Wall Street Journal to George Soros' opinion appearing in the British Press. |
9/25/2008
On September 30, 1999, reports had Fannie Mae reducing credit standards. Here's the original article from the NYTimes. |
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. |
9/24/2008
Three distinguished professors of business give their views on improving the bail out. |
9/24/2008
Here are more IFTA questions about the impending bail out. |
9/24/2008
Here's the letter Donna Rook of Chicago sent to her Representative and Senators. |
9/23/2008
Some questions about the bailout that occur to IFTA members |
9/22/2008
A remarkably candid view from |
9/22/2008
In the last generation, the Indian economy has remarkably benefitted from "de-socializing". Some say this was a result of Indians' exposure to the U.S. economy's vitality. Now they wonder where we are headed. |
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. |
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? |
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. |
9/17/2008
September 18, 2008
6-7:30
Rescuing America
Location: McCormick Freedom Museum, 445 N. Michigan Ave., Chicago |
9/17/2008
September 18, 2008
6-7:30
Rescuing America
Location: McCormick Freedom Museum, 445 N. Michigan Ave., Chicago |
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 |
9/16/2008
From Brian Wesbury and Bob Stein, a contrary view of the financial meltdown. |
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. |
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? |
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. |
9/11/2008
When I first started to investigate federal budgeting and accounting issues I was shocked to discover that the government did not prepare consolidated financial statements until 1995. Now there is a discussion going on.... |
9/10/2008
The costs and indicated action according to "The New York Times". |
9/10/2008
"Black Belt Patriot" author and actor Chuck Norris mentions how he learned about the real deficit. |
9/9/2008
The College of DuPage in suburban Chicago has put all expenses on-line for all taxpayers to see. |
9/8/2008
Markets are applauding the federal takeover of another federal enterprise. |
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. |
9/6/2008
Our friend Rick Skiba tells us politicians often think NIMTOO which means |
9/5/2008
The DJIA lost 3% after the market predicted today's unemployment numbers. |
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! |
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... |
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? |
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? |
8/29/2008
Ben Alexander asks:Getting to a more personal level with the issues, what are the candidates' positions on the alternative minimum tax? |
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? |
8/26/2008
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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? |
8/25/2008
Kudos to the Peterson/Walker gang for the release of I.O.U.S.A. It is great to see I.O.U.S.A. out before the election. |
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. |
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.
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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. |
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. |
8/18/2008
Sal Grosso is a hero you should know. |
8/18/2008
Are the worst of our economic problems over or are they just beginning? |
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. |
8/15/2008
The United States has become the second worst environment for corporate taxation. Only Japan is worse. |
8/13/2008
While the world is watching the Olympics, the Chinese are watching the U.S.'s financial performance. |
8/9/2008
Good news: the dollar rose and oil fell on world markets yesterday. Why? |
8/7/2008
The first reviews of IOUSA are in from the Washington Post. Standing ovations for a documentary! |
8/6/2008
In the wake of Freddie Mac reporting record losses, here's The Financial Times' view of the overall situation. |
8/5/2008
Another highly paid Fannie Mae CEO makes the news for all the wrong reasons. |
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. |
8/2/2008
The China News reports American econometric models predict an Obama win by a small margin. |
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! |
7/31/2008
The GDP grew at 1.9% in the second quarter which indicates we're not in a recession but isn't very attractive. In addition, 44,000 new unemployment claims were filed for a total of 448,000 receiving jobless benefits |
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???? |
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. |
7/25/2008
Sheila Weinberg's letter published today as a reply to a recent article, "Fixing Springfield" by Dennis Byrne. |
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 |
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? |
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? |
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. |
7/18/2008
Here is a true patriot from the "Greatest Generation" who still worries about his country. |
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. |
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%. |
7/14/2008
Our friend Terry Savage makes the point beautifully. |
7/14/2008
IOUSA the movie premieres in August. See the trailer now! |
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. |
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. |
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. |
7/10/2008
Here is something YOU can do to start to bring the truth about our true financial condition to the candidates. |
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. |
7/9/2008
Medicare is the black hole of entitlements facing Americans. This article shows we're continuing to dig a deeper hole. |
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! |
7/9/2008
Instiute questions Governor's definition of revenue and use of "Enron Accounting |
7/8/2008
How can states balance their budgets and run deficits at the same time?---An Institute study. |
7/7/2008
This |
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? |
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. |
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. |
7/1/2008
This time the Columbus Dispatch's Joe Blundo weighs in with data from IFTA's Web Site. |
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 |
6/28/2008
Congress takes an easy path to explain the rising cost of oil. Blaming a |
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. |
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. |
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 |
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. |
6/23/2008
Some of the same forces that are driving oil prices are at work in the electricity markets.
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6/21/2008
Here, Paul quotes Sheila Weinberg on the real deficits. |
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? |
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? |
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. |
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. |
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. |
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. |
6/10/2008
Expensive oil required Americans to ship more wealth to foreign suppliers despite solid gains in exports. |
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 |
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. |
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? |
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? |
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. |
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. |
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 |
5/27/2008
As Congress debates |
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. |
5/23/2008
The declining dollar helps explain why oil costs more...and why that new Mercedes costs more, too. |
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. |
5/20/2008
One financial fear for Americans is the wave of baby-boomer retirements. What if it doesn't happen that way? |
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. |
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! |
5/19/2008
How do state governments claim their budgets are balanced and run hundreds of millions of dollars of deficits at the same time? |
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. |
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? |
5/16/2008
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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? |
5/14/2008
More than half of insured Americans are taking prescription drugs for chronic medical conditions. |
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? |
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. |
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. |
5/6/2008
American Debt now exceeds what might be called |
5/6/2008
News that America's Debt now exceeds what might be called |
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. |
5/4/2008
Alan Blinder recommends a |
5/2/2008
Here's a sensible first step to deal with the nation's accumulating debt. |
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. |
4/30/2008
On the day we expect the Fed to make an interest rate announcement, our favorite working economist offers his advice. |
4/28/2008
Government is not the only big- time debtor. Here's a recent article that provides some historical perspective on personal debt. |
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? |
4/27/2008
Voters need to be given an honest calculation of how much the campaign promises will increase annual deficits. |
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! |
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. |
4/23/2008
An economist ponders the way the media frames economic decisions in |
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. |
4/21/2008
Will Fannie Mae and Freddie Mac need a trillion-dollar bail out? S&P estimates the price tag. |
4/19/2008
Sallie Mae's liquidity crisis has parents with declining borrowing capacity looking at less expensive educational options. |
4/18/2008
With interest rates at 15% to support their currency, this island nation may foretell what may be in our future. |
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. |
4/17/2008
John McCain chooses tax day to discuss his views on managing the economy. One wonders how he defines the |
4/16/2008
Oil and other commodities reflect the depreciating dollar. |
4/14/2008
Notice the lightening-fast consequences of an accounting collapse in the private sector versus the continuing problem at government entities. |
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? |
4/14/2008
Wake Up Accountants! - What Can You Do About Our $53 Trillion Hole |
4/12/2008
The effects of the Chinese and Indian supercycle as the Brits see it. |
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. |
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