Numbers don't lie, Bushes do

March 20, 2002—Deconstructing the national debt means understanding the difference between GAAP (Generally Accepted Accounting Principles) and BFAP (Bush Fantasyland Accounting Principles).

According to BFAP, the figure for the publicly stated national debt is $5.65 trillion. When the national debt is deconstructed in terms of GAAP, however, you'll find that the accumulated national debt is closer to $14 trillion.

This figure can be calculated by plugging in debt (either current or future debt, which will have to paid) that is not included in the BFAP numbers. The $5.65 trillion number comes principally from the accumulated Social Security deficit of $3.2 trillion, combined with some provisions for the 3 percent non-marketable US Treasury notes that have been inserted into the other 43 public trust funds. They have made unrealistic projections regarding the so-called "mandated spending gaps," which are actually much higher than the figures they use.