roposed Social Security fixes fail to count the cost--Enron-like accountin

[rodeodance]

"Those who would try to borrow their way to Social Security solvency say they are merely substituting one form of debt for another. While adding red ink now, they argue, the government would relieve itself of some of its obligation to pay future benefits. For this reason, they say borrowing - and doing so on the sly - is appropriate."........

http://story.news.yahoo.com/news?tmpl=story&cid=679&ncid=742&e=1&u=/usatoday/20041216/cm_usatoday/proposedsocialsecurityfixesfailtocountthecost


Proposed Social Security fixes fail to count the cost


1 hour, 15 minutes ago


What is taking place, however, is anything but. Bush has yet to go beyond generalities. And many proposals from lawmakers are Pollyannaish prescriptions for how private accounts can cure what ails Social Security.


In fact, greater returns of private accounts are nowhere near enough to cover deficits the program faces as the baby-boom generation retires. Some privatization plans propose borrowing as much as $5.3 trillion over 10 years to finance private accounts - at a time when the federal budget deficit is at record-high levels. If the plan proves less successful than its advocates' rosy projections, pressure to cut benefits would be enormous.


Compounding the problem, the Bush administration is considering some Enron-like accounting changes to hide the red ink, including not counting this borrowing as part of the federal budget.

[indepat]

1. Enron-like accounting rules the day in all government financial matters

IMHO.

[rodeodance]

2. we are so used it that it does not make headlines anymore:-(