www.usdebtclock.org Begins GAAP Reporting
Mar 17, 2015
As posted on www.usaponzi.com
I recently noticed that www.usdebtclock.org is now reporting both the Federal Deficit and Federal Unfunded Liabilities on a GAAP basis. Previously the US Debt Clock only reported the Cash Deficit and Unfunded Liabilities on a "when paid" basis. I am pleased say that this now gives me another source that I can use to validate my research and support my commentaries.
I am also encouraged that the numbers that they report are nominally consistant with the numbers from my USAPonzi Fiscal Model. My Fiscal Model was created in Dec 2013 when the interest rate was 3.9% on the long bond which causes my GAAP Deficit to be too high and my Unfunded Liabilities to be too low. That is one of the issues with GAAP Accounting; the numbers are very sensitive to the assumption that one makes for the discount rate for future expenditures. It is just like Yogi Berra says: "It is very difficult to make predictions especially about the future".
USAPonzi US Debt Clock
Long Bond Interest Rate 3.9% 2.7%
GAAP Deficit FY2015 $6.51T $5.55T $5.62T
Unfunded Liabilities $82.8T N/A $95.6T
The interest rate on the 30 YR U.S. Bond was 3.9% in Dec 2013 and is 2.7% in Mar 2015.
All of these are estimates until the U.S. Government begins to offically report on a GAAP basis.