A newly released GAO report finds that "...absent policy changes...the federal government continues to face an unsustainable fiscal path." The Government Accountability Office completed its annual audit of the government and the news is just sad. It is no surprise, and it won't be reported by the mainstream media [properly], but it is sad nonetheless.
The report gives a jab at those in the government who do not seem capable of providing accurate financial information. The report said that the federal government "must have ready access to reliable and complete financial and performance information." This information is needed when audits are done. The "weaknesses" cited in the report are astonishing, and abundant.
It is no surprise that for the non-accountable federal government, tracking tax-payer money would just be an annoyance. Nobody will report on the fact that the American economy is imploding, so why should the government bother to maintain financial records?
The main problems cited were "serious financial management problems at DOD," the federal government's "inability to adequately account for and reconcile intragovernmental activity and balances between federal agencies," and the federal government's "ineffective process for preparing the consolidated financial statements." Pathetic.
To add insult to injury, President Obama has repeatedly made it clear that he is not interested in negotiating with Congress over raising the debt ceiling. The GOP has repeatedly asked to negotiate spending cuts and entitlement reform, but despite Obama's position in 2006 that raising the debt ceiling was a sign of "leadership failure," he has clearly changed his mind while he holds the purse strings.
The GAO report should be a wake-up call.
Photo Source: Daily Agenda
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Comments: 15
WASHINGTON | Fri Jan 18, 2013 6:37pm EST
(Reuters) - "Republicans in the House of Representatives backed away on Friday from a fiscal clash with President Barack Obama next month that could have risked a government default and chaos in financial markets, shifting to a new, less aggressive stance."
Republicons, Just back-downed with their tail folded between their legs. I repeat, there will be no negotiation on the Debt ceiling, period. President Obama wins this hands down. Conservatism and the right-wing is an anathema to democracy and the American people. The Republican Party and the right-wing agenda are just on the wrong side of history. Time to move forward.
With a Federal government unable to voluntarily restrain itself year after year, I still feel the country needs a balanced budget process amendment to force their hand on honest management of the nation's finances.
US Federal Reserve 'underestimated financial crisis'
http://www.bbc.co.uk/news/business-21092849
Severely underestimating what it is going to take despite repeated reports and warnings like this. Let alone the years gone by already of obvious failure to address it properly. Double Amen!
With a Federal government unable to voluntarily restrain itself year after year, I still feel the country needs a balanced budget process amendment to force their hand on honest management of the nation's finances. Triple Amen! You are on a roll! Well said, John.
Thanks for the article, great contribution!