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U.S. Government Releases FY 2008 Financial Report

Washington – The Treasury Department and the Office of Management and Budget today released the Fiscal Year 2008 Financial Report of the United States Government. The report details the U.S. government’s current financial position, as well as its short-term and long-term financial outlook, complementing the President’s Budget to be released in the spring of 2009.

“Throughout this unprecedented year, the Treasury Department has worked to achieve and maintain the stability of the financial system with short-term actions, but we must not forget the long-term needs that pose a significant threat to our country’s fiscal sustainability,” said Treasury Secretary Henry M. Paulson, Jr. “The projected costs for Medicare, Medicaid and other social programs are much greater than the resources that will be available to pay for them. Changes are needed to ensure these programs are fiscally sustainable.”

Just in case you thought Paulson knew something about reserve accounting and monetary operations.

“It is without question that we face extraordinary challenges in our financial markets and the larger economy,” said OMB Director Jim Nussle. “As a result, the bottom-line budget results in the short-term are sobering. It is imperative to continue to aggressively confront today’s challenges. Functioning markets and a healthy economy will not only help put the federal budget back on a path towards balance, but will position us to take on inevitable future economic challenges, such as the our nation’s biggest budgetary challenge, the entitlement crisis.”

At least Nussle ducks the S word (sustainable).

I suspect he knows sustainability isn’t an issue.

And that government deficits equal non government savings of USD financial assets, etc.


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