Wednesday, December 27, 2006

World's biggest employer bankrupt.

The following letter was published in the Washington Post. It is from comptroller of the largest employer in the world discussing exactly how dire their economic situation would be. If this company were traded publicly the stock values would plummet. The problem is that the board that runs the company is corrupt and incompetent and the CEO is utterly stupid. The employer is the government of the United States.

The largest employer in the world announced on Dec. 15 that it lost about $450 billion in fiscal 2006. Its auditor found that its financial statements were unreliable and that its controls were inadequate for the 10th straight year. On top of that, the entity's total liabilities and unfunded commitments rose to about $50 trillion, up from $20 trillion in just six years.

If this announcement related to a private company, the news would have been on the front page of major newspapers. Unfortunately, such was not the case -- even though the entity is the U.S. government.

To put the figures in perspective, $50 trillion is $440,000 per American household and is more than nine times as much as the median household income.

The only way elected officials will be able to make the tough choices necessary to put our nation on a more prudent and sustainable long-term fiscal path is if opinion leaders state the facts and speak the truth to the American people.

The Government Accountability Office is working with the Concord Coalition, the Brookings Institution, the Heritage Foundation and others to help educate the public about the facts in a professional, nonpartisan way. We hope the media and other opinion leaders do their part to save the future for our children and grandchildren.

Comptroller General of the United States

Government Accountability Office
Bankruptcy brought to you courtesy of George Bush and the Republican Party. Merry Christmas.