Mark to market for Social Security?

Why not, I say?

Implicit government obligations represent the lion’s share of
government liabilities in the U.S. and many other countries. Yet these
liabilities are rarely measured, let alone properly adjusted for their
risk. This paper shows, by example, how modern asset pricing can be
used to value implicit fiscal debts taking into account their risk
properties. The example is the U.S. Social Security System’s net
liability to working-age Americans. Marking this debt to market makes a
big difference; its market value is 23 percent larger than the Social
Security trustees’ valuation method suggests.

Here is the paper, by Alexander W. Blocker, Laurence J. Kotlikoff, and Stephen A. Ross.  Here is an ungated version.  Do note that a worsening crisis will increase the magnitude of this difference.

Comments

...just as long as nothing else depends on the valuation of SS funds, so when things get worse, there's not this snowball of crap that falls on everyone.

Want solutions to these Welfare problems and the mess they have us in? Then go to: http://www.associatedcontent.com/article/330587/why_we_need_to_stop_the_welfare_madness.html?cat=47

I'm tired of this old canard, it seems every year someone brings this old chestnut out.

The government is not a corporation so corporate accounting does not apply.

And the change in this liability is, what, about $1 trillion per year? Shouldn't that be reflected in the annual deficit figure?

to say that the government is not a "corporation," and therefore traditional accounting rules don't apply is ridiculous. Accounting rules apply to any organization that accrues liabilities. According to the GAO, they apply to the Federal Government since about 2003. Check out the Comptroller's Annual Report of the U.S., from which some of the numbers from this report no doubt come.

The current political candidates attempt to increased government regulations in order to minimize the never-ending economic crisis we suffer today. The leading Democratic presidential candidate Barrack Obama has an ultimate campaign of implementing this.

America is bemused by the current economic crisis that mortgage lending has brought on to the country. However, Americans are not the only people affected by such matters on a daily basis. The International Herald Tribune elucidates that the worldwide credit crunch is going on in Europe as well. Small businesses depend upon credit with its suppliers in order to function. A small business owner, Dominique Boudier who runs a printing company, also depends on credit for the production of her company, and her creditors are cutting back their offerings by half. This is an order from the suppliers’ credit insurance companies. Bouldier’s business needs additional cash flow to make up for their major fallback, considering a typical 60-day lag time in which clients pay. As the bank’s hands are tied, the goods of her future seem unclear. Like many banks across Europe, her bank began to put their money to sleep with the European Central Bank instead of investing it back into other banks and the economy as a whole. When liquidity was disrupted and banks began to fail, credit began to dry up. Similar to America’s Federal Reserve Bank, the European Central Bank uses a method based on the ability to create as much fiat money as required. Fiat-money currency loses value once the government refuses to further guarantee its value. We see this in high inflation rates in this demolishing economic world we currently live in. If the banking systems are more responsible, it will, without a doubt, help solve this problem. Until that happens, payday advance loans will absolutely be a smarter alternative for consumers who need immediate short-term relief and can’t bear to wait on an irresolute central banking system.

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The current political candidates attempt to increased government regulations in order to minimize the never-ending economic crisis we suffer today. The leading Democratic presidential candidate Barrack Obama has an ultimate campaign of implementing this.

America is bemused by the current economic crisis that mortgage lending has brought on to the country. However, Americans are not the only people affected by such matters on a daily basis. The International Herald Tribune elucidates that the worldwide credit crunch is going on in Europe as well. Small businesses depend upon credit with its suppliers in order to function. A small business owner, Dominique Boudier who runs a printing company, also depends on credit for the production of her company, and her creditors are cutting back their offerings by half. This is an order from the suppliers’ credit insurance companies. Bouldier’s business needs additional cash flow to make up for their major fallback, considering a typical 60-day lag time in which clients pay. As the bank’s hands are tied, the goods of her future seem unclear. Like many banks across Europe, her bank began to put their money to sleep with the European Central Bank instead of investing it back into other banks and the economy as a whole. When liquidity was disrupted and banks began to fail, credit began to dry up. Similar to America’s Federal Reserve Bank, the European Central Bank uses a method based on the ability to create as much fiat money as required. Fiat-money currency loses value once the government refuses to further guarantee its value. We see this in high inflation rates in this demolishing economic world we currently live in. If the banking systems are more responsible, it will, without a doubt, help solve this problem. Until that happens, payday advance loans will absolutely be a smarter alternative for consumers who need immediate short-term relief and can’t bear to wait on an irresolute central banking system.

Post Courtesy of Personal Money Store
Professional Blogging Team
Feed Back: 1-866-641-3406
Home: http://personalmoneystore.com/NoFaxPaydayLoans.html
Blog: http://personalmoneystore.com/moneyblog/

Oh, that was a completely effective spam post.

LIBOR OIS & TED spreads ended the week down 21% and 27%CP Yields on 90day paper increased to 4.9% on Firday, posting a 14% decrease for the week

5 year spreads on A-rated corporate bond increasing 4.9% and B-rated bonds increased 3.7% for the week.

It seems to me sometimes that government leaders don't understand their destination, if you understand what I mean. They seem to try doing something but fail over and over again. Then what is the purpose of their work. It's the same as taking payday advances with no urgent need.

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