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REPORT COPYRIGHT VIOLATION IN REPLY
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Message Subject
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What's the Inform Act?
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Poster Handle
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Anonymous Coward |
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Post Content
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Eric Sprott: Inform Act - Markets at a Glance - Dec 2013
Thanks to Boston University’s Larry Kotlikoff, it now seems like the U.S. might be getting closer to acknowledging that it has a serious fiscal problem; or at least this is what one might infer from the strong support from Congressmen and Senators from both sides of the aisle, as well as from fifteen Nobel Laureates in Economics (see Figure 2 for a complete list) and thousands of business leaders and economists from all stripes, for a new bill called the Intergenerational Financial Obligations Reform Act or “Inform Act”.
We find it appalling that, while some of the world’s brightest economists consider this an issue of paramount importance, notwithstanding its introduction to the Senate and the House, the “Inform Act” completely flew under the radar of the mainstream media. Hopefully, if this becomes law, it will not be possible for people to keep their head in the sand on fiscal responsibility.
The “Inform Act” is a bi-partisan bill that was introduced in the Senate and that will be introduced shortly in the House of Representatives that would require the “Congressional Budget Office (CBO), the General Accountability Office (GAO), and the Office of Management and Budget (OMB) to do fiscal gap accounting and generational accounting on an annual basis and, upon request by Congress, to use these accounting methods to evaluate major proposed changes in fiscal legislation.”1 In other words, it would require the U.S. government to evaluate its budget deficit by estimating the net present value of all its future payments and receipts, instead of arbitrarily deciding which items make it to the budget or not, as is currently the case. Thus, fiscal gap accounting would better represent the present and future liabilities of the government to its citizens and, as the thinking goes, allow for better decision making. [ link to www.sprottmoney.com] (supra) Less than 50% of article posted. More like 25% or whatever.
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