GAAP (Generally Accepted Accounting Principles) Assurance for America' Future. Why is this not an issue but an avoidance of accountability. "GAAP doesn't determine what's right but what is left". In government the use of cash in and cash out budgeting and finance is leading our Great American Enterprise into insolvency then bankruptcy at all levels of government funding education, health care, defense, security, foreign aid, etc. And conducting global trade to correct the existing imbalance of trade.
Side bar: quoted from the author Jerry L. Rhoads, CPA, Volume I: The Swing Vote to Drain the Swamp and Reign in Big Brother, and the Brotherhood, podcaster, and author of the American Enterprise Party Trilogy: "As a CPA consultant to the State of Illinois in 1977, I headed up a project to convert the state to the accrual basis of accounting, However, after the presentation by Mr. Rhoads, the governor decided that he wanted nothing to do with GAAP. When he realized the ramifications of reporting the State’s finances, he shelved the project.
Accounting 101 requires accrual accounting to determine solvency or insolvency. What's solvency ... "whether an enterprise can pay its bills now and, in the future,". Why, because the future depends on it.? Well government is an institution not an enterprise. The definition of enterprise is “a project or undertaking typically one that is difficult or requires effort, such as a business or company or a state-owned enterprise carrying out entrepreneurial economic activity". So, the business of governance of our GDP, budgeting, payment of short-term debt, amortization of long-term obligations, amortization and depreciation of capital assets requires the same standards of management as any American business enterprise.
Why then is the current government accounting not following GAAP? Because it would destroy the politician’s propaganda, that say the budget is balance, while adding borrowing in as cash receipts and deferring current liabilities. So, they can say the budget is balanced and in fact there is a surplus ... while this is a convenient misnomer ... or financial lie. At what level is this being done? At all levels of governance ... State, Federal, Local so-called branches of a government institution. How can this be changed? The Contract with America om 1991 proffered by Senator Doyle and Speaker Gingerich promised to implement zero based budgeting (requires GAAP) and numerous other promises in the 10 step contract with America, now being coined by Representative McCarthy as The Commitment to America.
This results, as Ray Dolio predicts in his book The Changing World Order (Why Nations Succeed and Fail).
Of course, these promises never happen. America is being run by attorney's, professors, lifelong bureaucrats who have never started or run any enterprise let alone the Great America Enterprise. Even China, our main competitor in global trade is contemplating a conversion of their government accounting to GAAP, ASAP. Also, China is more efficiently and effectively managed by a Dictator who will make it happen, so they will be able to destroy American Democracy and its inept accounting system. Will it succeed in upending America’s number one status in the World Order? It will if Biden fails to drain the swamp, reign in debt and deficits fueled by 24 million government employees.
Like Mark Twain wrote, " It ain't what you don't know that gets you in trouble; it's what you know that just ain't so”, It’s a conspiracy theory, or it's an issue not a problem, or where did you hear that? Inflation is transitory, open borders are closed, Putin oil and the Pandemic are the reason for high prices. Popycock running the books and false positives about open borders, climate change, inflationary deficit spending, and the future.
