Truth in 2010

7/27/2010 - Americans Beginning to Save Again

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.

7/25/2010 - Is Everything OK in OK?

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 - Pete Peterson's Prescription

The founder of the Peter G. Peterson Foundation, oft quoted here, gives is view on the US debt situation.

7/23/2010 - Cap And Trade Dead...or Playing Possum?

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 - Citizens Fire Overpaid City Employees

Here's an interesting story about three city employees in Bell California that were fired for salaries that were very high.

7/22/2010 - Report: Bailout Cost at Least $3.7 Trillion

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 To Use Social Security To Solve Pension Woes?

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.

7/20/2010 - Chinese Pass US In Energy Usage

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 - Questioning Actuarial Assumptions

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 - International Financial Reform

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 - Willie Brown Finally Understands

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 - Fed Recalibrating?

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 - Another Legislative Leviathan?

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 - Bill Gates Weighs In On State Budgeting

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 - Sheila Weinberg On The Radio

Founder Sheila Weinberg becomes a radio star in Maine. Hear the audio link embedded in the article.

7/11/2010 - Health Care Efficiencies

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 - Head-to-Head on Unemployment Benefits

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 - Congress: Heal Thyself

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 - A Response to Andy Grove

Last week,we published an article from Andy Grove on jobs. Here's an alternative view.

7/7/2010 - China's View On Trade

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 - Inflation

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 - An Idea From Inside State Government

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.

7/3/2010 - "Unconstitutional" Budgets Catch Up

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 - Where Is The Budget?

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's Advice

Andy Grove offers his views on creating employment in the U.S. The former Intel chief calls for a 'job centric' environment.

7/1/2010 - GASB Opines on Public Pensions

The Government Accounting Standards Board has opined on the nature of state and local government pensions.

6/30/2010 - How A Bill Becomes Pork

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.

6/29/2010 - Votes Coming On California Pensions

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 - All Deficit Hawks Now

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 - Keynesian And World Stimuli

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 - DIY Economics

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 - Social Security In The Red

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 Devalues The Dollar

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 - More On The Yuan

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 - The Trouble In The States

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 - State Pensions Funds Are Having Trouble

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 - Market Limit On US Debt

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 - Official Chinese Position On Yuan

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 - Fannie and Freddie To Delist

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 - The Five Stages Of Municipal Loss

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 - Municipal Borrowing and Risk

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 - NY Pension Fund Accounting Trick

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 - Chinese Currency Value Aggravates Trade Imbalances

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 - Moody's Drops Illinois' Bond Rating

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 - Private Pensions In Trouble Too?

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 - NY State Cutting Health Care Costs

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 - Data Point: Connecticut Debt Rating Lowered

The nation's weathiest state isn't immune to the effects of spending more than it is taking in.

6/2/2010 - How Old For Social Security Benefits?

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?

5/31/2010 - Fighting The Last War

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 - Debt Reckoning Comng Sooner?

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 - California Municipal Bankruptcies Looming?

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 - Money Supply Plunges

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 - How Many Warnings Do We Need?

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?

5/24/2010 - Lessons From France?

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 - European Social Model In Peril

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 - Hidden Pension Costs Worsen New York�s Fiscal Crisis

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 - Attitudes Towards China Must Change: U.S. Professor

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 - Hard Work At The Bureau Of The Public Debt

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 - Tweaking Social Security

Senator Kohl of Wisconsin proposes that only a few 'tweaks' are required to fix Social Security.

5/18/2010 - Euro Collapse

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.

5/17/2010 - Summer Snowball?

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?

5/16/2010 - Germans Balking At Bailout

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 - An Objection To Low Interest Rates

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 - Threadneedle Street Equates Greece and The U.S.

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 and the 'Crisis' Tax

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?

5/11/2010 - Fannie Mae and Freddie Mac

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 - Lessons from Britain

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 - IFTA And Sheila In The News

Here are a couple of recent articles featuring information or quotes from Sheila Weinberg, the Institute's founder.

5/9/2010 - Fannie and Freddie To Escape Regulation?

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 - Accounting and Accountability

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 - Financial 'Reform' Becoming Intrusive

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 - Los Angeles Facing Bankruptcy?

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 - Federal Pension Agency Fails Audit

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 - Greece Pays The Piper

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 - Maybe It's Cheaper To Bail 'Em Out

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.

4/29/2010 - Financial Reform Moves In The Senate

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 - Cities Considering Bankruptcy

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 - Get Ready For 'Shared Sacrifice'

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.

4/27/2010 - Accounting Assumptions and Public Pensions

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 - Sanity In StateGovernment

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 - IMF's Advice To The Wealthy

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 - VAT Tax Thoughts

Governing Magazine, the journal of record for state and local officials, takes on the VAT tax.

4/21/2010 - Why Isn't Fannie and Freddie Included?

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 - Ambivalence Over Goldman Sachs

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 - China Takes On Paul Krugman

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 - Public Engaged On Public Pension Plans

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 - Jobs Bill: Two Views

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 - Banks Runnng Ponzi Schemes?

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.

4/12/2010 - Congress To Ignore Budget?

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.

4/9/2010 - Man Bites Dog!

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.

4/8/2010 - California's Real Pension Crisis Exposed

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.

4/6/2010 - Congressional Temper Tantrum

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 - A Soak The Poor Tax Coming?

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.

4/3/2010 - China's Hu Coming To Washington

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 - Chinese To Redistribute Wealth...With A Social Security Tax

China considers a national social security tax to redistribute income. If they do not already redistribute income why do we call them Communist China?

3/31/2010 - Sheila Weinberg On 'Monsters and Money'

Here's The Institute's Sheila Weinberg on CBS Channel 2 Chicago's Monsters & Money in the Morning.

3/30/2010 - Budget Woes Press States Into Questionable Cash Grabs

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 Loses Bet Against US Dollar

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 - Markets Anticipating Local Governments' Troubles?

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 - What If They Gave An Auction And Nobody Came?

Diminishing interest is U.S. debt is beginning to push rates up, regardless of Bernanke's approach.

3/25/2010 - This Wasn't Supposed to Happen Until...

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 - State Pension Troubles Inevitable

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 - Promises, Promises!!

'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.

3/21/2010 - CBO Health Care Analysis Based on Uncertain Analysis

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 - The New Trickle Down Economics

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 - @Recovery.gov

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: The Problem Child Of State Finances

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 - Mass Treasurer Predicts US Bankruptcy

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 - Choices Coming For Municipalities

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 - State and Municipal Pensions The Next Bail Out?

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 China Model

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 - Battle Lines Forming Over Deficits

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.

3/9/2010 - States Double Down On Pension Funds

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 - Schools Going To Four Days?

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 - At first, slowly, then quickly...

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.

3/6/2010 - Rep. Tryon Introduces the Truth In Budgeting Bill

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 - Congressman Ryan on Health Care

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 Debates Its Economic Policy

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 - Assumptions Make The Difference

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 - California A Bigger Risk Than Greece?

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 - The Architect of Social Security

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.

2/25/2010 - Banks As Casinos

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 - 'Blatantly Dishonest Accounting'

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 - Soros on the Euro Crisis

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 - Governors Say States' Prospects Dim

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 - Interest Rates Headed Higher

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 - China Losing Appetite For U.S. Debt

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?

2/18/2010 - This Wasn't Supposed To Happen Yet

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.

2/17/2010 - The Banks Have Mostly Repaid

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 - Chasing The Fed

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 - Is Wall Street A Little 'Greecey'

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.

2/10/2010 - The Truth About Deficits.

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 - Unlimited Guarantees Get Used

The unlimited guarantees are supporting the two government sponsored entities. There is no evident exit strategy.

2/8/2010 - What Does The Secretary Know That We Don't

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 Corrosivity Of Debt

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 - Employment Picture 'Murky'

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 - Accounting Problems In Unemployment Numbers?

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 - The Cost of Debt

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 - Extreme Budget Proposal

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 - $3.8 Trillion Budget Proposed

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 - Hints Of The President's Budget

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 - Unbalanced

How can you determine if your government's budget is truly balanced?

1/30/2010 - Sheila Interviewed By NOCW

Sheila Weinberg discusses the concerns of the Institute during an interview by NOCW.

1/29/2010 - Intergenerational Equity

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 - Spending Ratchet Only Goes One Way

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 - Organized Entitlements

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 - Fed To Change Interest Rate Benchmark?

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

1/25/2010 - Just The Facts

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 - Is The US Economy Doomed?

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.

1/22/2010 - China Says It Has Recovered

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 - Debt Limit To Rise

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 - Partisan Deficit Commission Agreed

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 - Regular Visitors Will Notice...

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 Attracts Investors

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 - US Still Leads In Science But....

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 - The Monopoly Game As An Economic Metaphor

Amity Shlaes from the Council on Foreign Relations looks to culture and markets to explain our economic prospects.

1/14/2010 - Taxing Big Banks

The administration announces plans to tax big banks to recover the money spent to bail out the financial sector.

1/12/2010 - Recession Redux

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 - Bailout's Costs Told

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 - California First To Seek Fed Bail-Out?

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 - Washington Office Space Pricing Predicts More Bureaucrats

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 - NY Governor Takes Representatives to the Woodshed

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 - The Power of Compounding Growth

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 - For Once, Illinois Leads The Nation

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 - Some Good News--Savings Rate Up

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 - When Entitlements Run Out Of Money

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 - Bankrupt Bookends

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 - Another GMAC Rescue--The Perfect Coda For 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 - The Ghost Of Financial Crises Yet To Come?

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 - Accounting Problems With Health Care Bills?

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.

12/28/2009 - Goldman Sachs On The Dole...Again?

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 - 'Shovel Ready' Not The Answer?

Hedge fund manager Andy Kessler's different view on how to spend--or maybe invest--in our future.

12/26/2009 - Fannie and Freddie Covered For Unlimited Losses

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 - Season's Greeings From The Institute

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 - No Pay Czar at Fannie or Freddie

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.

12/23/2009 - End Of Life Care

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 - How China Sees Copenhagen

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 - Better News On Mortgage Workouts

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 - From Copenhagen

The meeting ended on Friday in chaos. Here's what the conferees did manage to agree on.

12/19/2009 - Federal Transparency Coming

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 - Debt Keeps Piling Up

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 - Dealership Ressurections

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.

12/15/2009 - One Study Confirms Health Care Reform Costs

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.

12/13/2009 - China's Economy Coming Back To Life

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 - Medical Care and Technology

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 - Trade Deficit Narrows...Slightly

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 - Should Public Employees Contribute to Their Pensions?

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 - Good News On Bailouts?

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 - James Grant Has His Say

One of the best on the dollar's situation with an excellent historical seasoning. Just the thing for a Sunday afternoon.

12/5/2009 - Prudence or Politics?

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 - 'Until There Is More Clarity'

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 - In Defense of The Federal Reserve

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.

11/29/2009 - The Debt Argument

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 - What Happens When Too Much Is Spent

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 - 'Balanced Budgets' Running Out Of Cash

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 - Accounting Gimmicks Used to Justify Health Care Bill

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 - Is The Punchbowl Running Dry?

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 - New Stimulus Plan Gaining Traction

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.

11/18/2009 - Tax More...Get More Of IT?

Regulators want to raise taxes to get greater penetration of information technologies and broadband. How does that work?

11/17/2009 - Chinese Believe US is Inflating Its Currrency

As president Obama visits, Chinese bankers explicitly accuse the U.S. of inflating its way out of its debt.

11/16/2009 - TARP Debtors Miss Payments

A report on the fate of TARP bailouts from The Huffington Post.

11/15/2009 - The President Visits The Bankers

President Obama is likely to be interrogated like a failing debtor by America's largest creditor.

11/14/2009 - China Stories

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 - Debt Reduces Options

As any homeowner with too many obligations knows, debt reduces options. The same is true for nations.

11/12/2009 - Pew Lists States In Trouble

A list of the disaster states in the most trouble from The Pew Charitable Trust.

11/11/2009 - Borrowing Binges Catching Up

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 - Controversy Over A Fed Audit

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 - Another Reason For The Meltdown?

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 - Another Budget Commission

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.

11/5/2009 - Accounting for Jobs

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 - Tom Sowell On Health Care

The sixth installment of the series.

11/4/2009 - Withholding Scam In California?

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 - Migration In America

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 - Thomas Sowell on Health Care

Part Five in the ongoing series from Investor's Business Daily.

11/2/2009 - Does Washington Know What It's Doing?

Federal Reserve Chairman Bernanke comes under attack for fundamental misjudgments in Forbes.

11/1/2009 - CitiBank Bailouts

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 - Cash For Clunkers Adds To The Deficit?

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 - Thomas Sowell On Health Care: Part Four

The next installment...

10/30/2009 - Tom Sowell On Health Care

Part Three of the economist's views on the realities of health care.

10/29/2009 - Sowell On Health Care

Our link to Part Two of Thomas Sowell's thoughts on health care. From Investor's Business Daily

10/29/2009 - GDP Resumes Growth

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 - Getting Beyond Stage One

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.

10/27/2009 - The Case For A Second Stimulus

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 - The Shape of Things To Come

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 - Dollar Dumping Difficulties

The advocates of dumping the dollar have great conflicts that make it difficult for them. Irwin Stelzer explains.

10/23/2009 - Does Congress Get It?

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 - Support For An Audit Of The Fed Grows

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: Too Big To Fail?

Paul Volker's financial acumen collides with The White House's vast banking experience.

10/20/2009 - Estimates Are Almost Always Low

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.

10/17/2009 - Wait Until We Have To Pay It Back

Monetization looks ever more likely as the deficit comes in at $1.4 Trillion.

10/16/2009 - On The Dollar:

We've worried about the dollar for a long time but, from The Economist,here's some alternative views.

10/15/2009 - Wisdom on Inflation

An erudite article from The City Journal that confronts inflation on a moral plane. Long, but worth the read.

10/14/2009 - Dollar No Longer A Store Of value?

Some thoughts on the declining dollar.

10/13/2009 - Bail Outs For OPEC?

The Saudis want compensation for lost revenues due to climate change treaties.

10/12/2009 - Trouble For State Pensions

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 - Bank Failures Hit 100 in 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 - Trade Imbalance Improves

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 - Plot Against The Dollar?

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 - Truth in Accounting 2009 Fall Newsletter

Eventful Summer Leads to Busy Fall

10/8/2009 - Dollar in Freefall?

One of the Institute's main concerns is the value of the dollar. This Wall Street Journal article shows why.

10/7/2009 - New DC Hiring Scheme Coming?

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 - Oil Producers Plotting Against Dollar?

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 - Quick Check On Federal Spending

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 - California: A Failed State?

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 - Problems Emerge As Communist China Reaches 60

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 - Repatriating American Manufacturing

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 - New Year's In Washington

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 - State Tax Revenues Tumble

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 - Volker's Pessimistic View

Paul Volker, the Fed Chief who whipped inflation, offers a dark view of the economy and of America, generally.

9/28/2009 - Transparency Heros

The Los Angeles Times salutes several transparency heros. This is a clip and save list.

9/26/2009 - Banks Set To Report Huge Losses

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 - Guaranteed Public Pensions Better Than 40(k)s

Market Watch distinguishes between private and public pensions.

9/23/2009 - Option Arms In Trouble

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 - Where Does The Money Go?

According to this article, Americans believe that half the money that flows to the government goes...where?

9/21/2009 - Fixing Health Care with Common Sense Technology

'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 - One Analyst's View on the Dollar

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 - Affordability of the Senate Health Legislation

A good analysis of the competing interests in the Senate Finance Committee's bill. From the The Washington Post.

9/16/2009 - Senate Finance Committee's Plan

The first story on the last prescription for the entitlement plan. From The New York Times.

9/15/2009 - U.S. Credit Shrinking

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 - Reluctant Sharehholder?

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 - Demicrats Warn They Will Move on Health Care

Democrats say they will move on health care--the largest entitlement ever--with or without Republicans.

9/12/2009 - Cap and Trade II?

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 - "Exotic Mortgages" Coming Due

The effects of the real estate collapse may not be over, despite encouraging signs in the resale market.

9/9/2009 - Krugman Blames The Economists

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 - UN Recommends Dumping The Dollar

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.

9/7/2009 - China Still Worried About US Printing Money

The Fed is printing money to buy Treasury bonds. This is alaming to the nation's biggest creditors, including China.

9/6/2009 - Mitch Daniels on State's Plight

Yesterday, we presented a national view of America's financial situation from David Walker. Today, Gov. Mitch Daniels of Indiana looks at the states.

9/4/2009 - Bankruptcy Judge Voids Municipal Labor Contract

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 - Study: Europeans More Innovative Drug Developers

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 - FDIC Bailout Coming?

The residual problems from the banking crisis have yet to be seen according to this opinion.

8/31/2009 - Doomed To Repeat It?

Wise men and women tell us that past is prologue. The administration recognizes that it's 1937, not 1929, that it should study.

8/28/2009 - Rampant Consumerism A Victim Of The Recession?

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 - Checking Up On The Banks

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 - Bailing Sub-Prime Lenders

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 - Looking Ahead To The Census

Next year's census promises some good news for the Sunbelt and bad news for the Rustbelt.

8/24/2009 - Social Security Payments: The Uncola

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 - Luke-Warm News On The Deficit

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.

8/19/2009 - Buffet Worried About Stimulus Spending

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 - California Public Pensions "Unsustainable"

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 - Whole Foods CEO's Suggestion

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 - What's A Proper U.S. Balance Sheet?

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 - IFTA in the News

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 - Unintended Consequences

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 - Troubled Banks Still A Concern

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 - Is Ginnie Mae The Next Problem?

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 - Market Test For Treasury Securities

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.

8/8/2009 - Martin Feldstein On Foreclosures

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 - Clunkers Traded For Fuelish Trucks?

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.

8/5/2009 - IFTA Volunteer Appears in 'The Illinois Review'

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 - Federalizing State Deficits?

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 - Nettlesome Problem for the Pay Czar

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 - Health Care Seen As Others See Us

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 - America's "Lost Decade"?

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 Capitol Building For Sale?

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 - Dollar's Troubles Have Consequences

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 - Mark-to-Market...Again

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 - Ben Bernanke On The Barnstorming Trail

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.

7/25/2009 - Truthful Numbers

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 Turns A Profit

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 - GAO Reports on Mississippi Stimulus Spending

Here is how the GAO reported on spending in Mississippi

7/23/2009 - Pelosi: I want a bill."

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.

7/22/2009 - ZIRP and the Dollar

"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.

7/21/2009 - Taxes and Health Care

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 - Taxes and Trade

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 - Read Legislation Before Voting?

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.

7/16/2009 - Chinese Stimulus Program Works

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 - CBO Says Health Plan Will Increase Costs

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 - Rent Rather then Evict

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 - Sheila Weinberg On The Air...Again!

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 - Do Tax Laws Have Consequences?

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 - China Questions Dollar Again At G8

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 - An Appreciation Of The Deficit

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 - Stimulus Plan Hijacked By The States?

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 - Obama vs Biden Over Economic Assessment

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 - Dollar To Be Challenged at G8

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 - Why Truth in Accounting is Necessary

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 - Taxpayers Asking For Truth In Assessment

Local property owners are asking for assessors to truthfully value their homes and businesses. That's straining local budgets.

7/3/2009 - Foreclosures Not What We Thought?

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 - Gas Taxes To Help Domestic Manufacturers?

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 - How Cap and Trade Passed

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 - Do California's Woes Predict Other State's Futures?

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 - The Other Side of the Chinese Juggernaut

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 - China Questions The Greenback...Again

Bloomberg quotes dollar skeptics.

6/27/2009 - House Approves Cap & Trade

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 - CBO Finds 'Darkened' Outlook

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 - Has Anyone Actually Read 'Cap and Trade'?

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 - Barney Frank Reverses Course...Again

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' Manage Their Credit Better Than Their Government Does

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 - CRAs Escape Increased Regulation

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 - Italian Customs Turns Up $134 Billion

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 - The Case For A National Sales Tax

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 - Geithner's Taking Heat From Senators

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 - California Scaling Back Benefits

The welfare state is showing its limits and the Golden State wants to hand out less gold.

6/16/2009 - Maybe This Is Where The Money Is Going

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 - Bail-Out For Hunting Boots?

With all the bail-out money sloshing around it's bound to show up in unusual places.

6/14/2009 - Regulators Not Rolling Over For The President

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 - Finally, A Congressman Tells The Truth

Our own congressional representative Mark Kirk's remarks on the truthfulness of Congress' numbers.

6/12/2009 - OIl At Yearly High...In Dollars

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 - Arthur Laffer's Predictions

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 - TARP Repayments

The administration has caved on its plan to control some

6/10/2009 - Geithner's Last Laugh?

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 - Exiting TARP....Horizontally?

The Wall Street Journal asks if Citigroup should be allowed to fail.

6/7/2009 - Government Unfiltered

A recent congressional investigation finds the Fed's Inspector General essentially clueless.

6/6/2009 - China May Diversify Into IMF Bonds

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.

6/4/2009 - A Shocking Statistic

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 - Two Views On Geithner's China Trip

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 - Creditors Seek Alternative to the Dollar

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 - The GM Bankruptcy Backstory

Bloomberg reveals the characters who will oversee the once-unthinkable GM bankruptcy and defend the taxpayers'

5/29/2009 - Feds Pile On More: U.S. Debt Now More Than 4X Private Obligations

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 - Ominous Signs In The Bond Market

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 - California Headed For Bankruptcy?

The Orange County Register recommends Chapter 11 for California. We should consider the source because Orange County did declare bankruptcy.

5/25/2009 - Bumpy Road Ahead For Foreclosures?

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 - Dallas Fed President Sees More Liabilities

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 - Speculation On A California Bail-Out

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 - Pension Agency Needs Help

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 Genesis of The Institute for Truth In Accounting

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 - Several alternatives to Single Payer

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 - Social Insurance Potpourri

Sveral articles and views on American solvency's biggest threat--entitlements.

5/16/2009 - Obama Warns Of Debt

How, then, does he recommend a spending program that requires borrowing ten trillion dollars over the next decade?

5/15/2009 - Health Care Providers Pledge Big Savings

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 - What's China Holding?

An excellent overview of the foreign holders of U.S. debt from The China Daily.

5/13/2009 - SSA Trustees Report Bad News

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 - The 'Structural Deficit' Ploy

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 - California Fiscal Troubles And Immigration

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 - Savings Makes A Return

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 - Tough Timers For All Carmakers

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 - Movement on Social Security?

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 - New Tax Rules For Overseas Investments?

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 - Public Pension Abuse In Massachusetts

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 - Ahead of the Curve

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 - Detroit's View Of Detroit

Here is a view of the Chrysler Bankruptcy from The Detroit Free Press. They worry that a 30-60 day resolution is "naive". If it only takes two months for Chrysler to emerge, GM will soon follow.

4/30/2009 - Less Bad Bad News

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 - TruthIn2008.org Visitors Explode

Unique visitors hit an all time high of more than 180,000 in April.

4/29/2009 - Debt To The Penny

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 - Historical Market Recovery

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 - Pensions and the Purpose of Socializing Them

There's been much speculation that the Obama Adminstration is "socializing" lots of America. Here are two articles that look at the purpose of socializing pensions and the implications from a conservative and liberal source.

4/24/2009 - President Sending Mixed Messages?

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 - Flint Thinks Outside The Neighborhood

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 - Jack Bogle on the Causes of the Meltdown

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 - Chrysler Finance Trips Tarp

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 - Now That Sounds Familiar...

The Institute has long accused governments of using "fuzzy math" to obfuscate their financial condition. Could that tactic be spreading to banks even though they have much stronger accounting principles?

4/17/2009 - Tale Of Two Subsidies

It's the worst of times for taxpayers but the best of times for federal subsidies. Here are two stories to illustrate the point.

4/15/2009 - Financial Elites Turning The US Into A Banana Republic?

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.

4/14/2009 - But Wait!.....There's More!

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.

4/13/2009 - China Buying Less US Debt

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?

4/10/2009 - Obama Brokers Low-Rate Mortgages

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 - States Plan Big Tax increases

The Wall Street Journal reports several states plan to coerce more revenues from their citizens as their economies falter.

4/7/2009 - The Institute at the Union League

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 Podcast

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 - GASB Issues an Invitation to Comment on Pension Accounting and Financial Reporting

The Governmental Accounting Standards Board (GASB) has issued an Invitation to Comment (ITC) on Pension Accounting and Financial Reporting.

4/3/2009 - New Mark-to-Market Rules

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 - Mark-to-Market Showdown

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 - Banks Walking Away From Foreclosures

What happens when an underwater debtor mails in the keys and the bank says "Return to Sender"? A new phenomenon is that banks are not taking possession of foreclosed real estate.

3/30/2009 - Witnesses to the Great Depression

What defines a great depression? Few remember it because if one was 20 years old on "Black Tuesday", they would celebrate their 100th birthday this year. Here are a couple of famous survivors' observations.

3/29/2009 - Home Town Press On Barney Frank

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 - Oil Back On The Horizon?

Low oil prices may be evaporating as the industry fails to reinvest. Can producers afford to "Drill here, Drill now" at $50 oil? Economic recovery may create a shortage and much higher prices.

3/26/2009 - "Ten Trillion and Counting"

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 and the Greenback

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 - EU's View Of The Stimulus

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 - Mark-to-Market

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 - Treasury Reveals Bank Plan

Forbes reports on the Treasury Secretary's plan to fix the banks' problems.

3/22/2009 - Obama Assures China

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 - Mortgage Relief

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 - Bankruptcy In California

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?

3/17/2009 - State Pension Fund Woes

Bail-outs or bankruptcy? Get ready for the next wave of financial troubles in public employee pension funds.

3/14/2009 - A Model For The Feds In Nebraska?

Shane Osborne, Nebraska's Treasurer, recommends transparency to the federal government.

3/13/2009 - What Took So Long?

The New York Times reports the Chinese Premiere is worried about that country's trillion dollar investment in U.S. Treasuries.

3/12/2009 - A Global View of Capitalism

The Financial Times has an expansive series on this economic system and who is important in its future.

3/7/2009 - National Health Care Express Derailing?

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 - China's Stimulus plan

The 11th People's Congress is underway. It's a forum Chinese leaders use to set expectations and an event the West should heed.

3/4/2009 - Business School Advice On Fixing The Financial System

Themes from academics who recently collected their best advice

3/3/2009 - Pension Concerns Not Just The States' Problems

Underfunded pension plans are not just the states' problems as this survey of our hometown corporations shows.

3/2/2009 - AIG Loses, Taxpayers Chip In

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 - Citi At The Trough

Is the third time the charm?

2/26/2009 - Higher Taxes Coming

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.

2/23/2009 - States' Financial Conditions

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 - Who Owns What?

The China Daily has an excellent graphic showing the owners of U.S. obligations.

2/20/2009 - China Makes A Move

Wonder where all that money we send to China is going? We may be seeing where, this week.

2/18/2009 - Politics and the Bailout

The effect of politics on the economics of the bail out according to Holman W.Jenkins

2/17/2009 - The Future Arrives In The Golden State

For years The Institute for Truth in Accounting has been warning about governmental fiscal meltdowns. Most folks weren't concerned thinking "Why worry, that's years in the future." The future is arriving in trend-setting California, this week.

2/14/2009 - Where Bad Assets Go To Die--Or Revive

After the F.D.I.C. moves in, what happens to the questionable assets that cause banks to fail?

2/13/2009 - China Speaks

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 - Foreign Holders of US Debt

Ever wonder which countries are buying up all the debt the Treasury issues? Here's a list.

2/9/2009 - How The Financial Crisis Developed

Economist John Taylor's view of the government's role in the financial crisis.

2/6/2009 - A Primer On Deflation

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 - Tax Code Complexity Rather Than Intent?

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 - Chimerica

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 - Big Bang Coming?

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 - Sheila Weinberg to appear on ABC Ch. 7 News 430p today!

IFTA Founder/CEO to talk about the challenges facing Gov. Quinn with the budget.

1/29/2009 - Where The Money Goes: Part Two

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 - Schwarzenegger To Furlough Workers

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 - Where's The Money Going?

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 - Central Bank's History

An interesting historical perspective on the role of cental banks and panics.

1/26/2009 - Auto Bailout Frustrated By The States?

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 Graduates Feeling The Meltdown

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 - Pension Battle Looming?

Our friend Terry Savage's SunTimes column on Illinois public employees' pension situation

1/23/2009 - An Excellent Way To Spend Twenty Minutes

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 Tries To Help Itself

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 - Advice From The Brits

Clive Crook of The Financial Times provides a quartet of suggestions from a real welfare state with predictable recommendations.

1/18/2009 - Bail Out Windfall

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 - Two Views of the BofA Situation

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 - Fix Our Debt

Send $194,400 To Washington Today

1/13/2009 - Public Sector Pension Problems Looming

Years of promises for benefits far in the future and a stock market melt down are challenging governors and mayors.

1/9/2009 - China Losing Taste For American Debt?

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.

1/8/2009 - Obama To Take On Entitlements?

As Nixon opened China, will it take a liberal Democrat to confront the entitlement problem?

1/6/2009 - One Senator's Advice

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 - Obama Tax Cuts

What happened to the plan to make Americans pay their "fair share"?

12/31/2008 - Creative Borrowing Bites California Towns

Trends often start in California; here's one that will not be welcome in the rest of the nation.

12/30/2008 - Rationing: A Solution For Health Care Cost Control?

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 - Europeans Root For Euro

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 - It's Not Just Us.....

Our friend Paul Jacob on the orgy of debt:

12/27/2008 - Fiscal Literacy

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 - How It Adds Up

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 - Warning Signs At IndyMac Unheeded?

Reports in today's New York Times say the failed subprime lender improperly accounted for a capital infusion that allowed it to claim "well-capitalized" status...just before it failed.

12/22/2008 - Mortgage Aps Explode

Mortgage applications are keeping lenders busy inspecting applicants' credit more closely, this time.

12/19/2008 - President Throws A Lifeline

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 - Wait A Second...

The New York Times has a few questions for Treasury Secretary-Designate Geithner.

12/13/2008 - True But Incomplete

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 - Accounting Is Not Always About Numbers

Congressional investigators are looking into Fannie and Freddie but what sort of accounting can we expect?

12/10/2008 - Tough All Over

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 - Zero Percent

Car dealers often use "Zero Percent" financing to lure buyers. Now that the government is entering the car business, the technique seems to be spreading to the Treasury.

12/5/2008 - Divining The Future Of Health Care

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 - Materiality

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 - What's A Life Worth?

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 - Unimaginable Casualties

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 - The New Economic Team

Two of our favorites, Brian Wesbury and Robert Stein's take on Obama's picks for the economic team.

11/24/2008 - Is A Pattern Developing?

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?

11/20/2008 - Private Pension Funding in the Crosshairs

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.

11/14/2008 - Congress's View on the Financial Crisis

Here is Congress' Joint Economic Committee's opinion on the meltdown. Hat tip to Pete Speer for the lead.

11/13/2008 - What's the Bail Out's Real Cost?

This article in Forbes thinks it's as much as $5 Trillion.

11/12/2008 - Transparency Required

Does anyone know where all the bail out money is going? Here's a good start on making the system more transparent.

11/9/2008 - Iceland as Example

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 - That Depends...

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 - Bail Out Confusion

The fast action by the Congress proves the old adage about acting in haste.

11/4/2008 - On Target

For those of us who worry about the effects of entitlements, this opinion from David Brooks is right on target.

11/3/2008 - Argentina

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 - Candidates Sign Truth in 2008 Pledge

Thirty Seven Congressional and Three Senate Candidates Commit to Telling the Truth about Our Nation�s Debt

10/31/2008 - Market Decline Raising Pension Costs

We're partial to Illinois stories but this one probably applies to many cities and states.

10/31/2008 - Evanston's Public Employee Pension Problems Real

More problems from the Land of Lincoln's most progressive city.

10/30/2008 - GDP Drops Less Than Expected

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 - Voters Will Decide Initiatives in 36 States

Many will mandate new spending when states are already fiscally challenged.

10/28/2008 - GM Seeks Bail Out

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 - AIG's Financial Reporting Woes

"Mother Jones" reports on the accounting deficiencies at AIG which contributed to its collapse. Like other big companies that failed, AIG was warned.

10/24/2008 - Do Deficits Matter?

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.

10/22/2008 - Managers Skeptical on Rescue

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 - Another look at Keynes

The "Financial Times" remembers the great economist as the financial crisis unfolds.

10/20/2008 - This Time For Sure!

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 - Bernanke Fighting the Wrong Fiscal War?

That's the opinion of Milton Friedman's 92 year old co-author, Anna Schwartz

10/17/2008 - Oil Prices Fall More Than Stocks

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 - The Feds Get Their Year- End Statement

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.

10/12/2008 - Bail Out: Plan B

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 - End Of American Capitalism?

10/10/2008 - Second Thoughts on the Bail Out

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 - Sheila Weinberg on "First Business"

IFTA Founder and CEO Sheila Weinberg comments on the bail out on Tom Hudson's "First Business" program

10/5/2008 - Caleeefornia Under Water?

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.

10/4/2008 - States Next in Line?

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 - Bail Out Passes Senate

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 - Owner's Manual for the Bail Out

Forbes provides an explanation of the bail out.

9/30/2008 - Another Bailout Passes

While the Congress deliberates the financial bail out, they quietly passed an automobile bail out.

9/30/2008 - Judging Congress Harshly

Our friend Terry Savage predicts the consequences of the bail out flame out.

9/29/2008 - The Bail Out: Sunday's Developments

Here's a one-page summary and a six page section-by-section analysis from Congressman John Linder's web site.

9/28/2008 - REINVEST, REIMBURSE, REFORM

Speaker Pelosi's press release explaining the specifics of the bail out and much more.

9/27/2008 - Bail out Views--East to West

From London, New York and Los Angeles, the why, the what and the how of the bail out.

9/26/2008 - David Walker's View

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 - News Round Up On The Bail Out

Here's a range of stories ranging from the Wall Street Journal to George Soros' opinion appearing in the British Press.

9/25/2008 - A Warning from the Ancient Past

On September 30, 1999, reports had Fannie Mae reducing credit standards. Here's the original article from the NYTimes.

9/24/2008 - What The Fed Can Still Do

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 - Academics Assess the Bail Out Plan

Three distinguished professors of business give their views on improving the bail out.

9/22/2008 - How Did We Get Into This Mess?

A remarkably candid view from "The New York Times" Freakonomics column.

9/20/2008 - The Bail Out: What We Know.

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 - Bail Out To Socialize Bankers' Troubles

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 - What Will The Bailouts Cost?

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 - IFTA CEO to Moderate Rescuing America Forum

September 18, 2008 6-7:30 Rescuing America Location: McCormick Freedom Museum, 445 N. Michigan Ave., Chicago

9/16/2008 - Example: Why Achieving Fiscal Sustainability Is So Difficult

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 - Don't Worry...Be Happy?

From Brian Wesbury and Bob Stein, a contrary view of the financial meltdown.

9/15/2008 - Markets Roil As Feds Say "No!"

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 - Untruthful Accounting for Fannie and Freddie?

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 - Follow The Money

Wondering why the federal government seems so willing to bail out private investment banks? As is always good advice, follow the money.

9/10/2008 - The Bailout

The costs and indicated action according to "The New York Times".

9/9/2008 - Citizens Group Wins Transparency Victory

The College of DuPage in suburban Chicago has put all expenses on-line for all taxpayers to see.

9/8/2008 - Takeover Lifts Markets

Markets are applauding the federal takeover of another federal enterprise.

9/7/2008 - Bad Accounting Sinks Fannie & Freddie

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 - NIMTOO

Our friend Rick Skiba tells us politicians often think NIMTOO which means "Not in my term of office". Here's a perfect example.

9/5/2008 - Employment Numbers Dismal

The DJIA lost 3% after the market predicted today's unemployment numbers.

9/4/2008 - $600 Million Gift To Genetic Research

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 - Not Everything Starts in California

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 - Two Views on Manufacturing in Ohio

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 - Labor Day Means Back To School

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?

8/28/2008 - SEC Orders Switch To International Accounting Standards

For 75 years, U.S. GAAP has been the gold standard. Does this move favor the users of financial statements or the accountants?

8/27/2008 - U.S. Rally or World Collapse?

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 - China Accumulates Dollars Again

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?

8/23/2008 - Inflating Debt Away

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 - International Accounting Standards to Replace GAAP?

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.

8/20/2008 - Soothsayers Predict Big Bank Failure

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 Systems Broken

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 - Meet Sal Grosso

Sal Grosso is a hero you should know.

8/18/2008 - Dr. Doom

Are the worst of our economic problems over or are they just beginning?

8/17/2008 - An Interesting View Of Oil Prices

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 - U.S. Gets A Silver!

The United States has become the second worst environment for corporate taxation. Only Japan is worse.

8/13/2008 - Olympics Not The Only Thing China Is Watching

While the world is watching the Olympics, the Chinese are watching the U.S.'s financial performance.

8/9/2008 - Dollar and Oil Both Go The Right Way

Good news: the dollar rose and oil fell on world markets yesterday. Why?

8/7/2008 - IOUSA Reviews In

The first reviews of IOUSA are in from the Washington Post. Standing ovations for a documentary!

8/6/2008 - An Even Handed Appraisal of the Mortgage Crisis

In the wake of Freddie Mac reporting record losses, here's The Financial Times' view of the overall situation.

8/5/2008 - Another Fannie Mae CEO Problem

Another highly paid Fannie Mae CEO makes the news for all the wrong reasons.

8/4/2008 - IOUSA Premieres On August 21 with Peterson, Walker and Buffet

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 - Chinese Media Predicts Obama Win

The China News reports American econometric models predict an Obama win by a small margin.

8/1/2008 - What Not To Worry

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!

7/30/2008 - The Fannie Mae Bailout Becomes Law

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 - Good News On Health Care Costs

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 - Letter to the Editor Department

Sheila Weinberg's letter published today as a reply to a recent article, "Fixing Springfield" by Dennis Byrne.

7/23/2008 - Congress To Vote On Bail Out

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 - Turf Wars Accompany Fannie & Freddie Bailout

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 - Means Testing Medicare Benefits

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 - Why Government Costs Too Much

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 - Peter G. Peterson Foundation Comes Out Swinging

Here is a true patriot from the "Greatest Generation" who still worries about his country.

7/17/2008 - Jerry Seinfeld, Financial Wizard

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 - Add 10% To The Total National Debt

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 - Congress Spending Us Into Bankruptcy

Our friend Terry Savage makes the point beautifully.

7/13/2008 - What Went Wrong?

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 - Advocacy Groups Insist On Accountability

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 - Special To Illinois Readers

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 - News on Fannie And Freddie

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 - Stop Digging!

Medicare is the black hole of entitlements facing Americans. This article shows we're continuing to dig a deeper hole.

7/9/2008 - Breaking News! Weinberg To Appear on "Chicago Tonight"

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 - Governor Uses Creative Accounting to Balance the Budget

Instiute questions Governor's definition of revenue and use of "Enron Accounting

7/7/2008 - Just the facts: Will CAFE help?

This "We told you so" story blames unimposed CAFE standards for pump price woes. Yet, it reports world oil demand is up only 1.4%, compounded, since 2000. U.S. demand's up less than 1% on the same basis. Oil prices have risen 20 times faster. What's up?

7/6/2008 - This Wasn't Supposed To Happen!

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 - The Consequence of Sarbanes-Oxley?

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 - Moody's: States lacking budgets may affect ratings

WASHINGTON - California, Illinois and Massachusetts have yet to adopt budgets for the fiscal year that began Tuesday, a situation that could potentially affect their debt ratings, according to Moody's Investors Service.

7/1/2008 - IFTA Quoted Again

This time the Columbus Dispatch's Joe Blundo weighs in with data from IFTA's Web Site.

6/30/2008 - Central Bankers Worried About US Economy

Central bankers are worried about the world's economic situation. They are particularly concerned about the U.S. economy and falling dollar. The bankers call the dollar's decline "orderly" but cannot rule out a "sudden rush" to other currencies.

6/28/2008 - Villianous Speculators

Congress takes an easy path to explain the rising cost of oil. Blaming a "silver villian" is is nothing new, Herbert Hoover had similar thoughts about traders in 1929. Let's hope this crop of politicians has more courage and smarts!

6/27/2008 - China Set For 30 More Years Of Fast Growth

A People's Bank of China economist forecasts another 30 years of fast growth for the People's Republic. To put that prospective achievement into perspective, at one-half their recent growth rate, the Chinese economy will be at least six time bigger,then.

6/26/2008 - Truth in Accounting Panel Member to Appear on CNN

Terry Savage, nationally known expert on personal finance and a regular television commentator, will appear on CNN�s Issue #1, Friday, June 27, at 12:00 p.m. (Eastern) time.

6/25/2008 - Energy Costs Hurting Suburban Lifestyles

Suburbs far from the cities they surround exist because families can afford more house. Now, the heating and transportation costs are bursting lifestyles

6/24/2008 - To See Ourselves As Others See Us

The federal government isn't the only big-time debtor. Here's the St. Louis Post-Dispatch's take on its next door neigbor's problems.

6/23/2008 - Looming Electricity Shortage

Some of the same forces that are driving oil prices are at work in the electricity markets.

6/20/2008 - Candidates' Tax Plans

Here's a comparison between McCain and Obama's tax plans. What inquiring minds want to know is if collections rise when capital gains rates fall, what will happen when they rise?

6/19/2008 - Chinese Subsidies Mean Drivers Pay Just $2.72 Per Gallon

The Times of India reports the Chinese Government has price controls on refiners but subsidizes their losses. This means incresed demand. Is this one of the uses for their pile of dollars?

6/17/2008 - China Criticizes U.S. Economic Regulators

A newly self-confident People's Republic decides they have a better idea as U.S. and Chinese diplomats talk trade this week.

6/16/2008 - Congressional Dilemma

The House passed an extension to unemployment benefits. Their dilemma is whether to be compassionate or to be prudent. They almost always choose the former which helps explain why we're $56 trillion in debt.

6/13/2008 - Sheila Weinberg Helps The Mainstream Media

Here is one of Chicagoland's major newspaper's opinion on the national debt. Sheila gently nudges Mr. Constable about calculating the real numbers.

6/12/2008 - At Least It's A Start

Ruth Marcus argues that we're leaving a trillion dollar debt to our grandchildren to pay for the war in Iraq. Why isn't she also concerned with the other $55 trillion we are also leaving?

6/11/2008 - Remembering Ben Franklin's Advice

Ben Franklin valued thrift and savings but those virtues have waned during the last twenty years. David Brooks believes Franklin's advice remains good counsel despite rampant financial temptation.

6/10/2008 - Oil Prices Expand Trade Gap

Expensive oil required Americans to ship more wealth to foreign suppliers despite solid gains in exports.

6/9/2008 - Two Billion A Day

At $150 per barrel, American would send nearly a trillion dollars to foreign oil supliers each year. Why aren't we developing clean domestic sources? Here's one view on why that's not happening

6/6/2008 - Not Since The Great Depression.....

Is he a Robin Hood or a scofflaw? Not since the Great Depression have sheriffs broadly refused to hold foreclosure auctions. Now the sheriff of Philadelphia County has forced an interesting solution.

6/4/2008 - Government Isn't Helping Health Care Costs

It's inevitable; restricting supply of a product in demand will cause prices to rise. When government limits the number of health care suppliers, health care costs rise. Could capitalists be the answer?

6/2/2008 - Governor's Right-Budget is Out of Balance

Illinois Governor Blagojevich correctly points out that the budget passed by the state legislature is out of balance. But hasn't all the budgets he has signed in the past also been out of balance?

6/2/2008 - Senate Stalls On Fed Nominations As Dollar Wavers

The next president will appoint four Federal Reserve Governors because the U.S. Senate won't act on outstanding nominations. In the meantime, the dollar is under pressure according to this article.

6/1/2008 - Even New Jersey Gets It

New Jersey is often accused of being the poster child for expensive state mandates, required insurance benefits and a legislature that believes it can tax its way to the good life. Sheila Weinberg is helping reality to creep in.

6/1/2008 - Florida, Too?

Florida's economy is booming is because it has no income taxes. That attracts older folks who use the prescription drug benefit. If they were honest, wouldn't the Florida Times be calling for the repeal of this example of "failed budget policies"?

5/27/2008 - Cap And Trade At The Gas Pump

As Congress debates

5/26/2008 - A Cautionary Tale From Illinois

The State Of Illinois uses cash basis accounting to evade its Constitutional responsibility to operate under a balanced budget. After a while it adds up and voters may not be willing to pay. Click the link at the end and read the comments.

5/23/2008 - A Big Reason For Higher Gas Prices

The declining dollar helps explain why oil costs more...and why that new Mercedes costs more, too.

5/21/2008 - Actuaries Blamed For Public Pension Problems

When the New York Legislature fires its actuary, the New York Time takes notice. There seems to be enough blame for everybody.

5/20/2008 - What Tsunami?

One financial fear for Americans is the wave of baby-boomer retirements. What if it doesn't happen that way?

5/19/2008 - IFTA and Sheila Weinberg on Page One, Above the Fold

USA Today is the latest main stream media outlet to report the truth about US Government Debt. See the highlighted area for a quote from Sheila Weinberg, the Institute's founder.

5/19/2008 - IFTA Founder Featured By Government Accountants

Sheila Weinberg is featured in the Association of Government Accountant's daily digest. With the USA Today article, it's a two-fer day!

5/18/2008 - Why We Need Truth In Accounting

The story shows mainstream media is beginning to understand that government bookkeeping isn't so much about finding truth as it is about hoodwinking the public.

5/17/2008 - What Does This Mean?

This little story reports the Fed wants to pay interest on the money it requires banks to deposit with it. Where will that money come from? One guess is from the Fed's printing presses. How does that help?

5/16/2008 - An Interesting Viewpoint From An Unexpected Source

5/15/2008 - Indian and American Consumption

This article tells us India is offended by rising commodity prices meeting their rising expectations. The question is, why should we pass a $300 billion farm aid bill in this environment?

5/14/2008 - One Reason Health Care Costs Are Rising

More than half of insured Americans are taking prescription drugs for chronic medical conditions.

5/12/2008 - Can We Afford Nukes?

Nuclear power is looking better to environmentalists and those who worry about our current accounts deficits. The question is can we afford their escalating price tags?

5/8/2008 - Current Promises Cost All Of Us, Too

Barney Frank wants to help folks having trouble paying their mortgages by taking a couple of payments from the average homeowner. The trouble is, we'll either borrow the money or print it. This is one example of how we've built such substantial debt.

5/7/2008 - Candidate's Health Care Plans

Health care is on nearly everyone's mind as we head towards November's election. Here's a comparison of where the candidates stand.

5/6/2008 - American Debt Exceeds GWP

News that America's Debt now exceeds what might be called "GWP" or "Gross World Product". Take another look at the Debt Counter...

5/5/2008 - Health Care And Entitlements

Any solution to our debt crisis must include gaining control of health care costs. End-of-life care is a large component of these costs; here's the view of some seniors in New Hampshire.

5/4/2008 - As Usual, Crisis Means More Government

Alan Blinder recommends a "Newer" New Deal to handle the mortgage mess. Given the accounting irregularities at Freddie Mac and Sallie Mae, one wonders if that's such a good idea.

5/2/2008 - The Basis For A Solution?

Here's a sensible first step to deal with the nation's accumulating debt.

5/1/2008 - The Human Side Of Payments

Nearly 10% of our current account imbalance is explained by immigrants sending money to their home countries. Economic conditions have slowed the growth of these payments.

4/30/2008 - Brian Wesbury Weighs In

On the day we expect the Fed to make an interest rate announcement, our favorite working economist offers his advice.

4/28/2008 - Peronal Debt Keeps Growing

Government is not the only big- time debtor. Here's a recent article that provides some historical perspective on personal debt.

4/27/2008 - Deficit Shell Game?

Concentrating on tax cuts misses the stupendous cost of nationalized health care. Are any of the candidates (or the news media) aware of the real, $55 trillion debt that already exists?

4/25/2008 - What Would Senator Dirksen Say?

With apologies to the late Illinois senator, a hundred billion here, a hundred billion there soon adds up to a real deficit!

4/24/2008 - Well, Duh!

The Federal Government is one of the largest purchasers of almost anything. This article reports that the government will now consider past performance of vendors.

4/23/2008 - The Emotional Roots Of Entitlements

An economist ponders the way the media frames economic decisions in "human interest" terms and its implications.

4/22/2008 - A Tale Of Two Standards

More on Fannie Mae and Freddie Mac: The Wall Street Journal discovers the root cause of many problems in government--no truth in accounting.

4/21/2008 - Mortgage Time Bomb

Will Fannie Mae and Freddie Mac need a trillion-dollar bail out? S&P estimates the price tag.

4/19/2008 - Debt Crisis And College - Part Two

Sallie Mae's liquidity crisis has parents with declining borrowing capacity looking at less expensive educational options.

4/18/2008 - Iceland: The Canary In The Credit Coal Mine?

With interest rates at 15% to support their currency, this island nation may foretell what may be in our future.

4/17/2008 - Sallie Mae Studies Its Situation

Student loans may be harder to find as Sallie Mae studies its situation and finds itself a victim of the debt crisis.

4/17/2008 - McCain Reveals Some Economic Plans

John McCain chooses tax day to discuss his views on managing the economy. One wonders how he defines the "federal deficit".

4/16/2008 - Oil Prices Reflect Newly Minted Money

Oil and other commodities reflect the depreciating dollar.

4/14/2008 - The Private Sector Errs, Too

Notice the lightening-fast consequences of an accounting collapse in the private sector versus the continuing problem at government entities.

4/14/2008 - Credit Crisis Not Over?

The Vice Chairman of the Federal Reserve says the crisis isn't over. How much more debt will the U.S. take on to calm the markets?

4/12/2008 - China: Master of the Universe?

The effects of the Chinese and Indian supercycle as the Brits see it.

4/11/2008 - What Do Congressmen Think About The Government's Books?

Jim Cooper (D.TN)thinks the feds would jail businessmen who used the same financial reporting practices the U.S. Government uses.

4/10/2008 - A Euro Stalls, The Yuan Rises

Yesterday's opinion that the Euro is doomed contrasts sharply with the strengthening Chinese yuan.

4/9/2008 - Is The Euro's Rise Over?

In 2003, A dollar was worth about one Euro. Now, it takes $1.57 to buy a Euro. Despite the Euro's sustained rise,this article argues the Euro is doomed because economic objectives of EU countries are diverging.

4/8/2008 - Why America's Debt Keeps Increasing

It's hard to solve America's black hole of debt when we keep digging!

4/7/2008 - "America For Sale"

The New York Times examines what happens when foreigners with strong currencies trade t-bills for American companies.

4/5/2008 - Impoving Health Care Outcomes At Lower Costs
Health care expenses are becoming the most important element of entitlement programs' costs. Author Virginia Postrel reports from the patient's viewpoint on how improved asthetics might reduce costs substantially.

4/4/2008 - The Liberal View Of International Trade
The Nation takes Hillary Clinton to task on foreign trade policies. Wonder if they remember the Smoot-Hawley Act?

4/3/2008 - Chinese Reporting On America's Economy
China is becoming America's biggest competitor. This is what they are reading about our economy

4/2/2008 - "We're not here to give money away!"
So says a Social Security administrator facing disability claims originating under pressure from insurance companies.

4/1/2008 - Too Many Clients--Too Little Money
Illinois makes Medicaid patients wait in line for care and doctors wait for payment. Are there any lessons as we consider nationalizing all medicine?

3/31/2008 - Senator Clinton Recognizes Debt Threat
Senator Clinton links U.S. debt to national security. FYI, the IFTA pegs our national obligations at more than $50 trillion. In January, the Treasury reported China held $493 billion in treasury securities, about 1% of America's total debt.

3/29/2008 - Health Care Analysis and Solutions
Health care costs are household and state budgets' most intractable problem. Here are two views on what to do.

3/28/2008 - Glenn Beck: The $53 trillion asteroid
Americans aren't afraid of the truth. In fact, we crave the truth only slightly more than we crave a leader who will actually give it to us.

3/27/2008 - Passing On Problematic Promises
Social Security Trustees warn us once again--where are the candidates?

3/27/2008 - IFTA and Northwestern's Institute for Policy Research
Here's an excellent report on the substantial issues facing state governments. The IFTA attended and Founder Sheila Weinberg appears in a picture!

3/26/2008 - Another Promise We Can't Afford
The Pension Benefit Guarantee Corporation doesn't charge enough to perform on the promises it makes.

3/25/2008 - Management Of A Financial Crisis
A humorous look at one approach to managing bad news.

3/24/2008 - Ask The Man Who Hires Them
The former chairman of Lockheed-Martin casts doubt on earning our way out of debt.

3/22/2008 - We Are Not Alone
Our British cousins are feeling the pinch, too.

3/21/2008 - The View From LaLa Land
Joel Stein's west coast style applied to The Fed's Boss.

3/20/2008 - Even More Public Debt?
Fannie and Freddie to the rescue with a huge plan to leverage up.

3/19/2008 - CPA Journal Spotlights Deficits
Institute For Truth In Accounting's Weinberg And Nelson want to hear from candidates.

3/18/2008 - Two Views
Two stories today. First is a remarkably clear-eyed view of the Bear Stearns crisis and an opinion on the morale hazards of government bail-outs. It's harder to find what effect the failure of Bear Stearns will have on the federal balance sheet.

3/17/2008 - Lender Of Last Resort Expands Scope To Brokers
One of the the Federal Reserve's important functions is as lender of last resort to troubled, member banks. Now, it is opening the discount window to securities dealers. Is this a sign that the economy is in bigger trouble than we thought?

3/16/2008 - In the fiscal war, AWOL candidates
Clearly, some hard fiscal decisions will have to be made. But you would never know any of this from listening to presidential campaign speeches.

3/15/2008 - The Future Of Health Insurance?
If your employer says it is too expensive to provide health insurance for workers, how can you get coverage?

3/14/2008 - What's Happening To The Dollar?
As the value of dollar declines, will it remain the world's trading currency? Warren Buffett said recently that �the government can talk about how it�s in our interest to have a strong dollar,� but it is not following policies that would help.

2/26/2008 - Democrats promise a lot, but who will pay the bill?
Clinton and Obama both offer a long list of new spending proposals that suggests a lack of seriousness in confronting the nation's fiscal condition.

2/22/2008 - Uncle Sam�s Credibility Gap on Spending
Fewer than one in 10 Americans believe their government in Washington, D.C., is open and honest how it spends their tax dollars.

2/15/2008 - GAO's Walker Announces Early Departure
Walker to Become President and CEO of the Newly Formed Public Interest Foundation called Peter G. Peterson Foundation

2/15/2008 - Drowning in Debt
I probably wouldn�t be sweating deficits, if I believed the public was being told the truth about our actual deficits and public debt.

1/28/2008 - Truth in 2008 presents the Financial State of the Union
The Institute for Truth in Accounting releases its annual Financial State of the Union.

1/28/2008 - The Savage Truth in Accounting
Chicago Sun-Times columnist highlights that the hidden costs of the national debt are more dangerous than you think

1/24/2008 - Debt, Debt, Debt
David Houle, futurist and blogger, addresses our nation's debt problem.

1/22/2008 - I.O.U.S.A Debuts at Sundance
A breakthrough documentary on our country's debt showed at the Sundance Film Festival this week.

1/16/2008 - Presidential Candidates Shrink From Budget Issue
The Wall Street Journal reports that U.S. presidential hopefuls are largely ignoring serious financial issues.

1/11/2008 - Financial Times: US At Risk
Thanks to unfunded commitments, the Financial Times reports, the US is facing an uncertain financial future.

1/8/2008 - Top Accountant Makes 'A Call For Stewardship.'
The United States Comptroller General, David Walker, addressed the National Press Club last month. His subject: our troubling national financial situation.

1/7/2008 - Top Economist: 'We're playing a dangerous game.'
Laurence Kotlikoff, a Boston University economist, addressed the World Accoutancy Forum last month. His speech was informative...and sobering.

1/1/2008 - Holiday Party

12/31/2007 - Current federal spending track called 'unsustainable'
An update from the Congressional Budget office.

12/31/2007 - New York Times: Pension Fund Shortages Create Hard Choices
Almost half of the states have been underfunding their retirement plans for public workers and may have to choose in the years ahead between their pension obligations and other public programs, according to a comprehensive study.

12/18/2007 - Government $45 trillion short on Social Security, Medicare
The Associated Press reports on our latest government financial data.

12/17/2007 - Nation's Top Accountant to Discuss Federal Financial Situation on Monday

12/11/2007 - Sheila Weinberg on First Business
Institute for Truth in Accounting Founder Sheila Weinberg talks about the true state of the national debt on First Business.

12/3/2007 - National debt grows $1 million a minute
Like a ticking time bomb, the national debt is an explosion waiting to happen. It's expanding by about $1.4 billion a day � or nearly $1 million a minute. What's that mean to you?

11/6/2007 - Huffington Post: The Next Inconvenient Truth
What will be the next "inconvenient truth"? One person has a compelling answer. David Walker, the Comptroller General of the United States, believes that the nation is headed for a fiscal crisis of potentially catastrophic proportions.

10/31/2007 - McClatchyDC.com: Fiscal crisis threatens U.S. future
As presidential candidates largely ignore the issue, looming fiscal challenges threaten to swamp the U.S. economy and erode America's superpower status, several of the nation's foremost experts on the federal budget warned Wednesday.

10/29/2007 - Christian Science Monitor: Parties divided on entitlements
As baby boomers enter the starting gate into retirement, the cost of America's entitlement programs � foremost, Social Security, Medicare, and Medicaid � is projected to balloon to levels that are unsustainable.

10/8/2007 - UK Telegraph: China threatens 'nuclear option' of dollar sales
The Chinese government has begun a concerted campaign of economic threats against the United States, hinting that it may liquidate its vast holding of US treasuries if Washington imposes trade sanctions to force a yuan revaluation.

10/2/2007 - The Heritage Policy Weblog: National Debt to Spiral �Out of Control�
The most recent simulation by the Government Accountability Office (GAO) paints a sobering picture of the government�s long-term finances. The GAO estimates the fiscal gap at $31 trillion to $54 trillion.

5/2/2007 - Medicare Meltdown
What's going to happen when the money runs out for Medicare? A recently released report by the program's trustees found that within seven years Medicare taxes will fall short of Medicare expenses by more than 45%.

1/29/2007 - San Antonio Express-News Editorial: Time is running out as entitlements grow
The White House and Congress are playing a dangerous game of chicken regarding the runaway cost of entitlement spending.

8/4/2006 - USA Today: What's the real federal deficit?
The federal government keeps two sets of books. One the government promotes to the public has a healthier bottom line: a $318 billion deficit in 2005. The set the government doesn't talk about reports an ominous financial picture: a $760 billion deficit.