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Rep. Jim Cooper: Bush is Hiding the True National Debt. It's Worse than You've Heard. Much Worse.

Submitted by BuzzFlash on Thu, 09/07/2006 - 5:15am.

A BUZZFLASH NEWS ALERT

Though the Bush Administration's official budget lists the national debt and deficit as being incredibly high, they are actually far worse than reported, according to Rep. Jim Cooper (D-TN). But don’t just take his word for it, even if Cooper is a Rhodes Scholar and Harvard Law graduate. The following figures appear in the official U.S. Financial Report, released by the Treasury Department:

  • The true national debt is $49 trillion, not the $8.3 trillion Bush reported
    • That's $156,000 for every citizen, or $375,000 for every working American
    • This figure has more than doubled in the past five years
    • We paid $327 billion last year on interest alone
  • The true 2005 deficit was $760 billion, not the $318.5 billion Bush reported
    • This is 6.2% of the GDP, not 2.6%
  • It's all getting worse

What accounts for the huge discrepancy? Unlike businesses, the government uses "cash" instead of "accrual" accounting. This means that the government does not report future spending promises like Medicare and Social Security, or even future spending guarantees like veterans' benefits and federal employee pensions.

"Cash accounting tells you what's in your bank account. Accrual accounting tells you what's in your bank account and what's on your credit card statement," Cooper told BuzzFlash in an interview. "Whether you're promising to buy a road or something at Target, you need to know what you promised to buy. That should be a binding obligation of the government. We've made a world of promises to folks that we need to keep."

But wait, there's more! The U.S. Financial Report does not mention that if Medicare and Social Security are factored into the equation (which the Treasury Department did not), the true deficit was actually a whopping $3.3 trillion last year, over ten times more than Bush claims. And when Social Security projections are adjusted to reflect current life expectancies instead of the old 75-year mark, Cooper said the true national debt is "probably closer to $65 trillion."

Worried that a new Democratic majority in the House would be blamed for the higher numbers in the future, Cooper has taken it upon himself to make it clear that the problem has already been created by Bush's failed economic policies. "This has to be announced on their watch, using their voice," he said. "There's a great urgency about this: we only have two months left to educate all Americans about how the Bush deficits are literally destroying America's credit."

"I think [the report] is the most powerful critique of the Bush Administration" because they produced it, Cooper added. "No Republican can deny this attack."

In order to get the word out, Cooper reprinted the entire U.S. Financial Report in a book with his own explanatory introduction and a warning on the cover reading, "The Official Report the White House Does Not Want You To Read." He said the measure was necessary because the Administration tried to hide the report by distributing it to fewer than 20 members of Congress in the midst of the Christmas holiday season with no accompanying press release or media announcement.

According to Cooper, conservatives won’t touch the issue because it would make Bush look bad, liberal newspapers think it's too confusing, and liberal politicians are worried the ensuing chaos from the higher numbers would limit social program spending. "The way we're going, we're going to have to eliminate programs," Cooper retorted. "Isn't it better to embarrass Bush while we can with his own words and to get Democrats in control?"

Cooper said he is determined to do everything he can to add honesty to the federal budget. He gave the first copy of his book to House Democrat Leader Nancy Pelosi and has introduced legislation directing the president to use accrual accounting in his reports. A similar measure was recently lost in the Senate after passing in the House.

The only compensation Cooper is receiving for the book are three complimentary copies.

Click here to order your own from Powell's Books.

A BUZZFLASH NEWS ALERT

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accrual debt

Submitted by toolkien on Fri, 05/23/2008 - 1:54pm.
It is disheartening how something like our accrual basis debt catastrophe can be some partisan point scoring exercise. Anyone truly concerned about our crisis will not stoop to fighting. Simply put BOTH parties are equally to blame, in equal measure, for this crisis. Only one recent presidential candidate discussed our debt crisis, and that was Ron Paul. If both parties weren't so equally to blame, wouldn't we be hearing much more about it? But we don't, because both parties know at their core that they are both to blame for this mess. The current accrual debt is $53 Trillion, made up mostly of the present value of expected future streams under unfunded entitlements, Social Security and Medicare (medicare Part D added a whopping $11 Trillion with one swoop of a pen). Estimated wealth held in private hands only totals $51 Trillion, so we would have assess everybody EVERYTHING they own to make our entitlements work. And that's without expanding them with universal health care or the like. We got here over the last seven decades, from FDR to Bush II, through Republican AND Democratic regimes. Through their cozy 1984ish relationships within the beltway we've had Democrats traditionally sell promises for votes, selling something for nothing, putting the bill off for votes now. Republicans, meanwhile, have sold tax cuts for votes, while not doing anything to roll back the unfunded promises (the Dems Bills) and repudiate them. So we've had this decades long dynamic of both parties selling endless promises without having to tax too much to pay for them. And the electorate eats it up. It's an easy sell for politicians of both tribes and demand never ceases. So to take this crisis of epic proportions and simply bundle it up as a partisan issue that is easily cured with a Democratic Congress and Presidency is either disingenuousness or stupidity. We are talking massive dollars beyond reckoning here, and we are talking about a dystopian society necessary to effect its full realization. We can't tax cut or economically stimulate or tax increase or collectivize our way out of this mess. The only answer is a free market and self sufficiency. It's the only model that doesn't require the use of force on peaceful citizens, and provides justice to all. Our rotten corporo-fascist model has to end and end soon. And not be replaced with some other socialist model that is nothing more than another ponzi scheme foisted on us. It is the ever increasing Federal control of our lives which has distorted our economy and its most important sectors (energy, health, education). The answer isn't MORE control, but substantially less. A $53 Trillion accrual basis debt that exceeds private wealth by two Trillion is simply the proof that socialism is a failure. Freedom isn't a government program.
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blah blah blah. I haven't

Submitted by wasteoftime on Sun, 09/10/2006 - 1:50am.
blah blah blah. I haven't heard anyone mention the fact that we arn't accounting for our assets either. So cry about the liabilities and forget about the assets, good job. Keep blaming bush because he's the one that spends the money, oh wait thats congress. Too many people take cheap shots at bush. The fact is as a nation we need to spend less and reform taxes (NST). Did I forget anything, oh yeah privatize social security. If you disagree youre wrong, too bad boohoo. The fact is this news about the future liabilities is no surprise. By 2016 our SS surplus will end and it will be time to collect on our IOUs the congress has been writing us. Did you know that the baby boomers will get more out of social security than they put in and yet a 20yr will pay 2.5 times the amount they put in. Now thats something to cry about, well if your young.
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numbers count; every vote matters

Submitted by museredux on Fri, 09/08/2006 - 9:38pm.
The Florida Vote Sure, "Queen Hester", the beautous one (as Harris fancied herself), and all the fraud... true. But right off the top:
Republican 2,912,790
Democratic 2,912,253
Green -- that is, Nader 97,488
And so it goes. We were set up, left to deal with psychotic Christianzionists and NeoCons who have the compassion of a wargaming Rand Corp thinktank computer. They've been planning this for years, and if we don't stop them, it will be endless war.
Blame the Democrats, oh -- the spineless Democrats. But first read this, from 3 years ago, and really think about what they've had to put up with. This is why mere numbers do matter. Why we must take the House:
THE MISERY OF BEING A HOUSE DEMOCRAT.
(Full article, if you don't subscribe, here.)
Oppressed Minority
by Michael Crowley Post date 06.12.03 | Issue date 06.23.03
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Can someone help me with the math here?

Submitted by FarhadAbdolian on Fri, 09/08/2006 - 5:26am.

I am no expert of the US economy, but I can not figure out how $760 billion divided by 280 million (US estimated population in 2005) is definitely not $156,000 (my calculater gives me $2,715. I think the article make the mistake of having the $156k being the national debt and not the deficit. The scary part of this is that if the $49 trillion is correct, it means that the US national debt is over 400% of the US GDP and this value will increase every year unless US can see a steady increase in the GDP that is much higher than the interest rate. I think it is time for me to take my old 401k out of the US and moving back home to Sweden before I loose it all. Cheers, /Farhad Abdolian

[BuzzFlash note: You're right, we had it backwards and have fixed the error. We actually incorrectly had the $156k under the deficit instead of the debt, not the other way around. We blame the confusion on Bush for creating these big, confusing numbers.]

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National Debt

Submitted by fishsandwich on Thu, 09/07/2006 - 2:13pm.
Why hasn't Cooper done more to counter this over the years?
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why hasn't Cooper done more? Here's why.

Submitted by museredux on Fri, 09/08/2006 - 9:58pm.
see THE MISERY OF BEING A HOUSE DEMOCRAT.
(Full article, if you don't subscribe, here.)
Oppressed Minority
by Michael Crowley Post date 06.12.03 | Issue date 06.23.03
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National Debt in Perspective

Submitted by Stephen Fletcher on Thu, 09/07/2006 - 1:04pm.
The method I use for putting the National Debt in perspective is quite simple: divide one billion by 299,000,000 (the current population of The United States). This equals 3.34 or $3.34 per capita for each one billion dollars the Federal Government spends or $3,340 for each one trillion dollars of expenditures. Thus if the National Debt is 8.5 trillion dollars simply multiply the factor 3340 x 8.5= $28,390 which is the amount owed to the Federal Government by every man, woman, and child in the US, plus interest! For the Iraqi war: @ $2.5 billion per week x 3.34 = each person's share of $8.35 per week or $434/ year. You get the idea.
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The truth about Jim Cooper

Submitted by fishsandwich on Thu, 09/07/2006 - 12:30pm.
While I applaud Jim Cooper for watching the federal budget and calling a spade a spade (as is his job as an elected representative) it doesn't excuse all the other things he's done while in Congress. Jim Cooper is one of nine Bush Democrats identified by David Sirota who have consistently voted with the Republicans to move the Bush agenda forward. Sirota says none of the nine should get the support of democrats because they don't vote like democrats. Cooper voted to stay the course in Iraq, the make the Patriot Act permanent, for CAFTA, for the bankrutpcy bill, for "tort reform", to give control of the Internet to the big telecoms, for the constitutional amendment banning gay marriage, for keeping gays out of the military. The Nation magazine said that on issues of peace and prosperity, Cooper "takes the side of a White House that has consistently been at odds with both those goals." Jim Cooper has been hiding behind the democrat label while aiding and abetting Bush. He's got a great opponent in the general election, a democrat runnning as an independent who wants people to call Cooper on his record. Check her out. Ginny Welsch. www.welschforcongress.com We need more people like her to run because with guys like Cooper in Congress, even if we take back the house, it won't mean anything. He'll still be supporting Bush. fishsandwich
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Let's just make sure Tom Kovach doesn't win

Submitted by museredux on Thu, 09/07/2006 - 1:31pm.
TN has the Red State blues, and Cooper has given the folks what they asked for: he represented them. It's everyone's job to educate them. (Thank you, BuzzFlash.)If Ginny's a wonderful Democrat, let her run next time. For we have to take the House. Taking the House is setting the agenda, else nothing will ever see the light of day.
A vote for Ginny is like a vote for Nader: it only helps the Repugs.
Know this: This is our last chance.
daily kos points out:
TN-05 *Jim Cooper (D) vs Tom Kovach (R) Jim Cooper bravely supported stem cell research, and is seeking his third term. Tom Kovach is anti-immigration, anti-gun control, anti-homosexual agenda, and is in favor of shooting down drug trafficking air planes. Cooper is expected to win easily.
Let's make it so,
DMConner
"Listen, Moirai (Fates) ... hear our prayers ... send us rose-bloomed Eunomia (Good Order in civic government) and her bright-throned sisters Dike (Justice) and garland-wearing Eirana (Peace), and make this city forget its heavy-hearted misfortunes." - Greek Lyric V Anonymous Fragments 1018 (from Stobaeus, Anthology)
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Kovach Won't Win

Submitted by fishsandwich on Thu, 09/07/2006 - 2:12pm.
Tom Kovach isn't going to win. The 5th district has never given the Republicans more than 30% of the vote - even with an open seat. The idea that voting for Welsch is aiding the Republicans is just fear mongering and an excuse to keep bad democrats like Cooper in office. If we don't start demanding that our representatives vote like democrats, we're lost. David Sirota had a great article in the Washington Spectator talking about exactly this. He said there is a schism in the party between the insiders steeped in the money culture of DC and actual voters. And this schism is what the "insiders" want us to stop talking about - out of "respect for the bigger goal of winning back Congress." But he says this schism makes all the difference in whether a democratic Congress means a truly Democratic Congress and thus real change for America, or whether it "merely means fancier offices for a different set of politicians on Capitol Hill. " I agree wholeheartedly. I'm so tired of hearing that we "can't afford" to vote for someone who truly reflects our values - it's been the same song and dance for years. And all it means is that it's never time for the people to hold their representatives accountible for their bad votes. I fell for that too many times and too many times it was just business as usual after the fact. We need people like Welsch. And by the way if she wins Welsch will side with the democrats for control of the House. S that argument goes out the window. fishsandwich
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And Welsch won't win.

Submitted by museredux on Thu, 09/07/2006 - 9:52pm.
All she'll do is draw votes from Cooper. That's the simple truth. All the rest of what you said: we don't live in those times. You're speaking of Democracy, and we don't have one at present. Let's get it back. We start with control of the House.
I've had this conversation before. Young very green Greens and their 'protest' vote for Nader in 2000. Oh look: Florida's gone for Gore, the major corporate network on the tube says. You can protest vote for Nader. Oops. And so it goes.
Not this time.
Fear mongering? Please. I heard that in 2000, too.
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Florida was stolen, not lost by Nader voters

Submitted by CyberChas on Fri, 09/08/2006 - 5:35pm.
Florida was stolen by Jeb Bush, Katherine Harris, and eventually by the SCOTUS. Those who voted for Nader had nothing to do with it.

Know who your REAL enemies are and stop fighting those who are on the same side.

When a Democrat stops acting like a Democrat, they have to go. EVEN if they are that single vote that tips the scales from Republican to Democrat, they STILL have to go. And, you know what? If the House ended up with 218 Democrats and 217 Republicans and Cooper was one of the Democrats -- HE WOULD PROBABLY SWITCH TO REPUBLICAN RIGHT THEN AND THERE!!!

A vote for Welsch is a vote to remind the "inside the beltway, DNC Democrats" that there are people out here who won't be fooled.

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Nader did in fact help lose Florida for Gore

Submitted by Kevin Schmidt S... on Sat, 09/09/2006 - 4:50pm.
If Nader would not have run, Gore would have won Florida. Of course, Nader is not the only reason Gore lost, including Al Gore himself for not allowing anyone to contest the stolen election in Congress. I still can't understand why Gore did that. But to say Nader did not at least partially cause Gore to lose, would be mistating the truth. Nader was an unwitting, although very valuable, pawn of the GOP thugs.
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Gore the loser

Submitted by jmoz53 on Sun, 09/10/2006 - 1:11am.
One day you will realize Al Gore lost the 2000 election. Why not make the same case that Ross Perot put Clinton in the White House in 1992? It is over and one day you will have to move on.
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