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01-10-2019, 09:53 AM
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#81
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Gone but not forgotten
Join Date: Jul 2012
Location: Peru
Posts: 6,335
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__________________
If you want others to be happy, practice compassion. If you want to be happy, practice compassion.
--Dalai Lama XIV
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01-10-2019, 10:17 AM
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#82
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Thinks s/he gets paid by the post
Join Date: Jun 2016
Posts: 1,955
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Quote:
Originally Posted by pb4uski
Where did you get $1 million per citizen? It is a lot lower than that.... about $67k.
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The $1M is calculated using the GAAP accounting rules that corporations have to use. The main 21T debt figure does not include "unfunded liabilities"
that GAAP standards would force a corp to include like retirement obligations. Those additions alone bring the debt up to just under 100T.
https://www.justfacts.com/nationaldebt.asp
I'll go back through my search history from August to find the sources if I haven't cleared it since then.
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01-10-2019, 11:30 AM
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#83
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,263
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No actually the source that you referenced is wrong... much of what they include as liabilities would NOT be recognized as liabilities by a public corporation. The $30.8 trillion of SS shortfall and $34.6 trillion of Medicare shortfall would not be accrued as a liability under GAAP (I spend my career in corporate accounting and know this well).
The SS shortfall is not a liability... there is no legal obligation to provide what is promised and that is why benefits may be reduced by 23% in 2034... the only obligation is to provide benefits to the extent that tax revenues allow... even if a liability was recognized it would be mesured as zero because the PV of future benefits is equal to the PV of future tax revenues since once the trust fund runs out benefits are limited to revenues.
The same concept would apply to the Medicare liabilities... there is no legal obligation to provide specified benefits. If a public company reporting under GAAP had the same obligations they would not be recognized because there is no legal obligation to provide specified benefits.
The $9.2 trillion, $7.7 trillion of which are liabilites for employee and veterans benefits, is probably valid. Similiarly though, the other thing to consider is that land and buildings owned by the US government are not recognized as assets in their financial statements and those have considerable value. https://fiscal.treasury.gov/files/re...atements24.pdf
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
Retired Jan 2012 at age 56
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01-10-2019, 11:35 AM
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#84
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,263
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Quote:
Originally Posted by imoldernu
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The $72 billion that you posted includes U.S. goverment debt and private debt (US corporations and individuals)... we are talking just about the former.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
Retired Jan 2012 at age 56
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01-10-2019, 11:57 AM
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#85
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Thinks s/he gets paid by the post
Join Date: Jun 2016
Posts: 1,955
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Quote:
Originally Posted by pb4uski
No actually the source that you referenced is wrong... much of what they include as liabilities would NOT be recognized as liabilities by a public corporation. The $30.8 trillion of SS shortfall and $34.6 trillion of Medicare shortfall would not be accrued as a liability under GAAP (I spend my career in corporate accounting and know this well).
The SS shortfall is not a liability... there is no legal obligation to provide what is promised and that is why benefits may be reduced by 23% in 2034... the only obligation is to provide benefits to the extent that tax revenues allow... even if a liability was recognized it would be mesured as zero because the PV of future benefits is equal to the PV of future tax revenues since once the trust fund runs out benefits are limited to revenues.
The same concept would apply to the Medicare liabilities... there is no legal obligation to provide specified benefits. If a public company reporting under GAAP had the same obligations they would not be recognized because there is no legal obligation to provide specified benefits.
The $9.2 trillion, $7.7 trillion of which are liabilites for employee and veterans benefits, is probably valid. Similiarly though, the other thing to consider is that land and buildings owned by the US government are not recognized as assets in their financial statements and those have considerable value. https://fiscal.treasury.gov/files/re...atements24.pdf
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Technically congress can completely eliminate SS and medicare with the stroke of a pen. While its hard to imagine senior citizens rioting, there would be proverbial torches and pitch forks. The reality is those funds are either going to be paid (recognize it as a debt owed) or plan for martial law scenarios equivalent to defaulting on the "recognized" debt.
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01-10-2019, 12:13 PM
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#86
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Thinks s/he gets paid by the post
Join Date: Aug 2013
Location: North
Posts: 4,029
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I'm so confused we shut down a government over one demand, where in the interim government employed DoD personell are filling the gap for the aforementioned demand. So basically isn't this just shooting one's self in the foot, if we shut down the troops and support that protect our borders (TSA, border patrol, national guard, soldiers, military etc) then we are effectively weakening the border, as a barter to strengthen it? Anyone else confused?
__________________
Time > $$$ ~ 100% equities ~ FIRE @2031
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01-10-2019, 12:49 PM
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#87
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Thinks s/he gets paid by the post
Join Date: Jun 2016
Posts: 1,955
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Quote:
Originally Posted by kgtest
I'm so confused we shut down a government over one demand, where in the interim government employed DoD personell are filling the gap for the aforementioned demand. So basically isn't this just shooting one's self in the foot, if we shut down the troops and support that protect our borders (TSA, border patrol, national guard, soldiers, military etc) then we are effectively weakening the border, as a barter to strengthen it? Anyone else confused?
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Immediately after reading your post I came across this on another website:
“if you aren’t confused, you aren’t paying attention”
But there is a difference between immediate vs. long term impacts.
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01-11-2019, 08:43 AM
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#88
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,263
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Quote:
Originally Posted by Spock
Technically congress can completely eliminate SS and medicare with the stroke of a pen. While its hard to imagine senior citizens rioting, there would be proverbial torches and pitch forks. The reality is those funds are either going to be paid (recognize it as a debt owed) or plan for martial law scenarios equivalent to defaulting on the "recognized" debt.
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I'm not sure how that relates to the point that we were debating, but whatever. Under current law, SS benefits will be paid to the extent of taxes collected once the trust fund runs out in 2034 or so...thus no liability to be recognized.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
Retired Jan 2012 at age 56
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01-11-2019, 09:41 AM
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#89
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Recycles dryer sheets
Join Date: Jun 2018
Posts: 276
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Quote:
Originally Posted by Spock
The $1M is calculated using the GAAP accounting rules that corporations have to use. The main 21T debt figure does not include "unfunded liabilities"
that GAAP standards would force a corp to include like retirement obligations. Those additions alone bring the debt up to just under 100T.
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If you are going to use corporation reporting though, the net assets of the USA look pretty good. We could spin off Alaska for probably 10T. How much does a fully equipped nuclear sub go for these days? A lot I bet.
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01-11-2019, 12:00 PM
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#90
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Gone but not forgotten
Join Date: Jul 2012
Location: Peru
Posts: 6,335
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$5.6 Billion?
Depending, perhaps as much as $100 Billion... and even that doesn't count the cost of land, two thirds of which is not owned by the U.S. Further, the length of time for litigation, even with eminent domain, could be as long as 15 years.
No proof... just watching pieces of the news that are exploding.
Who really thought the government would still be shut down now?
My farmer friend, is seriously worried. For him, and his family, it's real. That's close enough for me to be concerned.
__________________
If you want others to be happy, practice compassion. If you want to be happy, practice compassion.
--Dalai Lama XIV
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01-11-2019, 12:07 PM
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#91
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Thinks s/he gets paid by the post
Join Date: Jan 2015
Posts: 1,536
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If air traffic controllers are starting to drop, that will have a direct effect on many areas of the economy. Unbelievable.
__________________
Wisdom starts with wonder
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01-11-2019, 01:00 PM
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#92
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2013
Location: ATL --> Flyover Country
Posts: 6,649
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My SIL just got her furlough notice (contract worker for National Weather Service). Thankfully, she is pretty smart when it comes to money, so she is looking forward to the "down time". But, she's not thrilled that she will most likely *not* get back pay.
I think as more and more folks are affected, there will be a lot of calls to elected officials to stop playing games which will eventually bring resolution.
__________________
FIRE'd in 2014 @ 40 Years Old
Professional Retiree
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01-18-2019, 09:22 AM
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#93
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Thinks s/he gets paid by the post
Join Date: Jan 2015
Posts: 1,536
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Just saw an article saying that Canada economic statistics will not be released since they utilize Commerce department info as inputs. The impact includes projections for 2019. Wonder how the Feds models may or may not be affected?
__________________
Wisdom starts with wonder
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01-18-2019, 09:31 AM
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#94
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Moderator
Join Date: Oct 2010
Posts: 10,653
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Quote:
Originally Posted by calmloki
Ok, this may affect some of you:
Local breweries can't release new beers nationally due to government shutdown
Breweries making new labels for national releases need federal approval, which is on hold right now during the shutdown.
https://www.kgw.com/article/news/loc...3-0c78597dfaa4
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They were all IPAs anyway. They can't seem to release any of the other dozens of styles
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Choice of things to defund
01-18-2019, 09:42 AM
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#95
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Moderator
Join Date: Oct 2010
Posts: 10,653
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Choice of things to defund
It always annoyed me that they shut down the things everyone likes and uses.
Why not go back through the recent legislation intended to cut the size of government that almost, but didn't quite pass, and start there? I'll tell you why: because everyone would cheer!
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01-18-2019, 10:36 AM
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#96
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2011
Posts: 8,360
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Quote:
Originally Posted by ExFlyBoy5
My SIL just got her furlough notice (contract worker for National Weather Service). Thankfully, she is pretty smart when it comes to money, so she is looking forward to the "down time".
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Just met some furloughed folks down here on the beach in Florida who are just digging the sunshine. Snow where they're from.
Lemons/lemonade in their mind I suppose.
__________________
Living well is the best revenge!
Retired @ 52 in 2005
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01-18-2019, 02:11 PM
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#97
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gone traveling
Join Date: Dec 2018
Posts: 1,196
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People traveling thru airports going thru extreme hell. TSA employees calling sick or working for free. 2-3 hours expected time alloted to get to your gate in the airports in my state. Terminal A is the drop off for food and supplies for TSA and air traffic controllers working without a paycheck.
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01-18-2019, 02:30 PM
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#98
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Thinks s/he gets paid by the post
Join Date: Mar 2009
Posts: 2,983
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Quote:
Originally Posted by marko
Just met some furloughed folks down here on the beach in Florida who are just digging the sunshine. Snow where they're from.
Lemons/lemonade in their mind I suppose.
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Nice insulated perspective.
__________________
Took SS at 62 and hope I live long enough to regret the decision.
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01-18-2019, 02:30 PM
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#99
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Full time employment: Posting here.
Join Date: May 2011
Posts: 873
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Quote:
Originally Posted by pb4uski
I would love to have us adopt something similar to Israel.... if the Knesset doesn't pass a budget before it is due then the Knesset is disolved and new elections are held. If Congress doesn't pass a budget within 3 months of the start of the fiscal year then Congress is disolved and new elections are held.
Given our congresscritters insatiable thirst for self-interest, do you think that we would ever have a government shutdown if we had something like that in place?
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Great idea in my opinion, for what it is worth.
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01-18-2019, 03:43 PM
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#100
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Thinks s/he gets paid by the post
Join Date: Nov 2011
Posts: 3,876
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Since for past shutdowns Congress has subsequently granted back pay, why not this time simply keep paying the Fed employees normally. Just too bizarre I suppose.
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