About Social Security...

"When Enron crashed they were ridiculed for cooking their books. Several laws were passed that said that clear bookkeeping was required or else. Of course like everything else that did not apply to the federal government who operate on a cash basis instead of an accrual system. Under an accrual system the cost of retirement is added yearly as the liability accumulates. Private retirement systems must contribute yearly to make sure they are fully funded to cover their future expenses. In 2003 our unfunded retirement liability including social security and medicare amounted to $45 trillion dollars. That works out to $158,000 for every man woman and child living in the US today. Our official public debt is only $4 trillion dollars. Our national net worth (all private property owned by US citizens) only amounts to $42 trillion dollars. The way the federal government keeps books, however, this outstanding liability never shows up anywhere. Technically on an accrual system we are bankrupt. Any CFO in private industry would go to prison for such accounting gymnastics."

From: RUNAWAY TRAIN
by Larry LaBorde