Feds’ budget tricks hide trillions in debt
Posted by Fredsvenn den november 28, 2007
Every year, tens or even hundreds of billions of dollars are quietly added to the national debt — on top of the deficits that we hear about. What’s going on here?
Nov 21, 2007
By Scott Burns
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 are clumsy parlor tricks compared with the Big Magic of American politicians.
Consider the proud trumpeting that came from Washington at the close of fiscal 2007. The deficit for the unified budget was, politicians crowed, down to a mere $162.8 billion.
In fact, our government is overspending at a far greater rate. The total federal debt actually increased by $497.1 billion over the same period.
Federal deficits versus increases in the federal debt – Fiscal year Reported surplus/deficit Debt increase Debt at start of year Debt at year’s end