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Originally posted by Relentless
I hope this isn't right, I hope he didn't say that, even if it is.
How much worse can it get?
Alan Greenspan revealed the United States has lost control of its budget.
the governor of China's central bank
"The US has always run a fiscal imbalance and current account imbalance but in the recent two years we see the magnitude of the deficits is historically high. People start to worry"
The fiscal balance is the accrual counterpart of the deficit in the cash GFS framework [and GFS as] measures on both a stock and flow basis. Stock measures (including net debt, net worth and net financial worth) highlight the fiscal position of a government at a point in time, providing information on the results of past decisions. Stocks reflect holdings of assets and liabilities. Stocks at the beginning of a period plus the cumulative result of flows in the period are equal to stocks at the end of the period.
Flow measures (including the net operating balance, net lending (fiscal balance), cash surplus and change in net worth) show annual changes in the fiscal position, reflecting the impact of government decisions and actions in that year. Flows represent the creation, transformation, exchange, transfer or extinction of economic value.
The key measures in the GFS accrual framework are: GFS net operating balance, GFS net lending (fiscal balance), cash surplus, net debt, net worth, change in net worth, and net financial worth.
Amex, of all places
the cash basis method of accounting, which is based on real-time cash flow. In cash method, you report an expense when it is paid, and record income when it is received. So, the day you receive a check, it becomes a cash receipt. And you record your expenses when you pay your bills, not when the bill is received. [as opposed to]
With accrual accounting, you record income when it is earned, not when it is paid. Similarly, you record your expenses when the obligation arises, not when you pay it. The tax code refers to this as recording income and expenses when they are "fixed" - when all the necessary events have occurred to receive the income or expense the liability. It is not necessary for cash to change hands.
Here's how accrual would work. Say, for example, you're a consultant and you complete a job on December 15, but you haven't been paid for it. You recognize all expenses in relation to that contract when they were incurred, regardless of whether you've been paid yet or not. Both the income and expenses are recorded for the current tax year, even if payment is received and bills are paid the following February.
*eyes start glazing over*
Originally posted by Regenmacher
Bitter disagreements over global economic policy broke out into the open yesterday as the French Finance Minister claimed that Alan Greenspan had admitted America had "lost control" of its budget while China warned the US to drop demands for radical economic policy changes.
Please visit the link provided for the complete story.
Originally posted by grover
I really hate to say this but DUH!!! It is not the most thought provoking or profound thing to say about this thread but given the circumstances what else can be said?
Originally posted by Mbuhir
Does anyone have an estimate on whn we should start seeing the drastic changes? Maybe I'll have enough time to stockpile....