Rename "debt" and "deficit" to reflect reality.
The Lens
Trump's Executive Order to Rename Debt and Deficits
Stephanie Kelton | Professor of Public Policy and Economics at Stony Brook University, formerly Democrats' chief economist on the staff of the U.S. Senate Budget Committee, and an economic adviser to the 2016 presidential campaign of Senator Bernie Sanders
3 comments:
They are not “renaming!” anything… they are applying generally accepted accounting principles…
Modified Accrual Basis does not allow the institution (this case the Federal Government) to accrue to NPV any financial asset … they have to report the current cash value… so if they establish a new wholly owned subsidiary Sovereign Fund they perhaps can apply Accrual Basis to the assets in that Fund and report that accrued value to the Federal government institution for inclusion in a consolidated federal government financial statement …
This new statement would have current asset values closer to equal long term liability values that the debt doomsday people are always complaining about…
Then watch the uneducated debt doomsday morons are going to say “that’s just an accounting gimmick!” … which more or less is the same thing the Professora here is saying in so many words…
Abstractions can appear as “gimmicks!” to the uneducated … because they don’t understand them… “hey! That cosine pi/2 is just a gimmick!”…
Post a Comment