U.S. headed for bankruptcy

The Northbrook-based Institute for Truth in Accounting (IFTA) this week released its annual "Financial State of the Union" analysis. CEO Weinberg warns us the "Treasury and the politicians say our nation's debt is only $10.6 trillion, which assumes we owe no promises... ."

However, we have made promises and we do have liabilities.

Unlike accrual accounting in corporations in the public sector, governmental accounting is on a cash basis and does not account for future liabilities.

Were the government required to account for liabilities (Social Security, Medicare, all other loans and debt, etc.) when reporting financial data, the IFTA's analysis concludes that while our assets are only $1.9 trillion, "America's share of our nation's financial hole is now $59 trillion - each of us owes $194,400."

I mean, wake up!!!! This is a staggering amount.

The former comptroller general of the United States David Walker, a few years ago told us the United States is on a path to financial destruction. This newly released report certainly confirms his prediction.

Where is the outrage? I see a chain reaction going on and we are not facing it. First the bankruptcy of individuals, leading to the failure of financial institutions, the failure of other companies and finally it will result in the bankruptcy of our own country.

You think this is not possible?

David Walker calls our condition a "fiscal cancer." Mr. Laurence J. Kotlikoff, economist at Boston University, says, "The fiscal gap is enormous and indicates that our nation is, quite literally, facing bankruptcy."

With liabilities of $59 trillion and assets as reported by the IFTA of only $1.9 trillion, it doesn't take a rocket scientist to see where we are going.

Where is our outrage????

Leo A. Dietrich

Lake Villa