Reply #50: Uncle Sam's magic tricks hide trillions

[AnneD]

When it comes to financial magic, the government of the United States takes the prize. Sleights of hand and clever distractions by purveyors of line-of-credit mortgages, living-benefit variable annuities and equity-indexed life insurance that I have illustrated in recent weeks are clumsy parlor tricks compared to the Big Magic of American politicians.

Consider the proud trumpeting that came from Washington at the close of the 2007 fiscal year. The deficit for the unified budget was, they crowed, down to a mere $162.8 billion.

In fact, our government is overspending at a far greater rate. Total federal debt increased by $497 billion over the same period.

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But politicians of both parties use happy numbers to distract us. Democrats routinely criticize the Republican administration for crippling deficits, but they politely use the least damaging figure — the $162.8 billion. Why? Because references to more realistic accounting would reveal vastly greater numbers and would implicate both parties.

http://www.chron.com/disp/story.mpl/business/5309918.html

This is old news to some of us but this is something newbies would be interested in.