Boom2Bust.com

Bad Moon Rising

On Monday, the Bush administration released its Financial Report of the United States Government for the 2007 budget year. And guess what? The U.S. government is promising $45 trillion more than it can deliver on Social Security, Medicare, and other benefit programs, according to the Associated Press yesterday.

I see the bad moon arising.
I see trouble on the way.
I see earthquakes and lightnin.
I see bad times today.

The Bush administration said Monday that the $45 trillion represents the gap between the promises the U.S. government has made in benefits, and the projected revenue stream for these programs over the next 75 years. The shortfall increased by nearly $1 trillion in just one year when using the 2006 report as a benchmark. In addition, the gap between entitlements and revenue is up 67.8% in just the past four years. Martin Crutsinger, an AP Economics Writer, said that in 2003 the shortfall was projected to be only $26.9 trillion over the same 75-year time period.

I hear hurricanes ablowing.
I know the end is coming soon.
I fear rivers over flowing.
I hear the voice of rage and ruin.

Even worse, when the gap in funding social insurance programs (Social Security, Medicare, Railroad Retirement, and Black Lung Program) is added to other government commitments, the total shortfall as of September 30 increases to $53 trillion, up more than $2 trillion in just a year, according to the report. Comptroller General David M. Walker, who serves as the head of the Government Accountability Office (GAO), said Monday that, “Our government has made a whole lot of promises in the long-term that it cannot possibly keep.”

Hope you got your things together.
Hope you are quite prepared to die.
Looks like were in for nasty weather.
One eye is taken for an eye.

As usual, Congress said something should be done as 78 million Baby Boomers reach retirement age…

On a side note, the report said that the federal budget deficit would have been 69% higher than the $162.8 billion reported two months ago if the government were held to the same accounting standards as private companies. Using the accrual method of accounting, the deficit would have totaled $275.5 billion for the fiscal year ending September 30.