And How Much Do You Owe?

Commenting on the US government's GSE (Fannie Mae and Freddie Mac) rescue plan and its impact on the public debt limit, Congressman Barney Frank (Democrat) said that any aid to Fannie Mae and Freddie Mac would be counted against the federal debt limit, which Congress must vote to increase.

FYI, The current public debt limit is $9.815 TRILLION and total public debt subject to the limit as of July 15 was $9.440 TRILLION.

(In case you don't remember our debt was under $1 TRILLION when financial genius George W. was inaugurated.)

Treasury Secretary Paulson, (one of my favorites in this cast of scallywag characters), favored exempting the rescue plan, which might add as much as another $5 to $7 TRILLION to the debt, from the public-debt limit.

Isn't this called "off balance sheet accounting"?

And, isn't "off balance sheet accounting" exactly what has gotten us into this mess from the beginning?

Can you and I "exempt" some of our selected debts from our financial loan applications and credit reports if we don't want our lenders to see them?

Ostrich-like behavior will surely entice our lenders (the Bank of Japan, the Bank of China, and the middle eastern oil barons) to lend us more money so we can keep running this country into the dirt. Duh?

Nice try Mr. Paulson, but would you please go back to the nearest community college and take a refresher course in Accounting 101 and Ethics.

The Best Money Guy