World Economy

Balancing the budget using the accounting practices currently used by our legislators is a myth. We the people need to understand the truth. The goverment uses what is refered to as baseline budgeting; from Wikipedia:

"Baseline budgeting is a method of developing a budget which uses existing spending levels as the basis for establishing future funding requirements. The concept assumes that the organization is generally headed in the right direction and only minor changes in spending levels will be required. The baseline is normally enhanced by adding adjustment factors based on issues such as inflation, new programs and anticipated changes to existing programs."

That sure doesn't sound like this is the way we ought to be doing our budgeting.

When you or I cut our budget we actually reduce the amount we spend, if we spend $100 and cut 2 percent we then spend $98. When the government, using baseline budgeting, cuts 2 percent, it first assumes an 8 percent growth rate, so it cuts 2 percent from 108 percent for a total of 106 percent. That is a cut in government spending.

Welcome to the wonderful world of federal accounting, meant to deceive and practiced as an art form by the men and women elected by us to uphold the constitution and represent us.

Remember the debt ceiling deadline is not the problem, the debt is the problem. At this rate in a short time every dollar that comes in will go to service the debt, nothing for anything else.