Wikileaks wins again. Loser? = Obama
- Thread starter Grapes Of Wrath
- Start date
That is not true. Until the company has actually entered into a contract, the $4 million is just forecasting.
They could change their plan at any time and spend the money on something else.
In the same way, Obama has only budgeted the $6.7 as a forecast for spending.
So saying "the money is already out the door" is inaccurate.
If you buy a house for $550k it would be reflected on your balance sheet as a $550k asset.
However the mortgage you took out to pay for the house would reflected on your balance sheet as a $550k liability; so your "debt sheet" would actually say $550k.
The reason why the mortgage on a house is a bad example is because you have already received and spent the $550k and are now legally bound to pay it.
Obama has not yet received or spent the $6.7 trillion, nor is he legally bound to.
If he took a loan for $6.7 trillion then your example would make sense.
A better analogy for Obama's commitment to spend $6.7 would be a company that is forecasting its budget for 2011 and projects revenue of $1 million. That company could then send an update to its shareholders saying that they are budgeting $200k for marketing.
The 200K is not yet a liability, nor are they legally bound to spend that $200k on marketing.
They could change their plan at any time and spend the money on something else.
In the same way, Obama has only budgeted the $6.7 as a forecast for spending.
So saying "the money is already out the door" is inaccurate.
If you buy a house for $550k it would be reflected on your balance sheet as a $550k asset.
However the mortgage you took out to pay for the house would reflected on your balance sheet as a $550k liability; so your "debt sheet" would actually say $550k.
The reason why the mortgage on a house is a bad example is because you have already received and spent the $550k and are now legally bound to pay it.
Obama has not yet received or spent the $6.7 trillion, nor is he legally bound to.
If he took a loan for $6.7 trillion then your example would make sense.
A better analogy for Obama's commitment to spend $6.7 would be a company that is forecasting its budget for 2011 and projects revenue of $1 million. That company could then send an update to its shareholders saying that they are budgeting $200k for marketing.
The 200K is not yet a liability, nor are they legally bound to spend that $200k on marketing.
Actually, I said the $4 Million is spoken for...which means it is no longer a forecast. If it is spoken for, the company has an obligation to spend it. Contracts do that.
Yes, it is an asset, but the money you owe is considered a DEBT! It's not a bad debt (as long as you make your payments), but it is a debt, nonetheless. It is money that you owe. DEBT, by definition, is money (or something else) that is owed or due.
You're absolutely right, he has not technically spent it, yet...nor is he obligated to spend it. He will, however, spend it. The budget that he has proposed is about $9.7 trillion (March 2010). Now, while the check hasn't been cut, we can expect most of, if not all of, or more than that amount to be spent. All that needs to be done is, he needs his plans approved (which shouldn't be difficult if Congress remains as is). Now, if the tables turn and his plans are shot down, I'll stand corrected.
Yes, it is an asset, but the money you owe is considered a DEBT! It's not a bad debt (as long as you make your payments), but it is a debt, nonetheless. It is money that you owe. DEBT, by definition, is money (or something else) that is owed or due.
You're absolutely right, he has not technically spent it, yet...nor is he obligated to spend it. He will, however, spend it. The budget that he has proposed is about $9.7 trillion (March 2010). Now, while the check hasn't been cut, we can expect most of, if not all of, or more than that amount to be spent. All that needs to be done is, he needs his plans approved (which shouldn't be difficult if Congress remains as is). Now, if the tables turn and his plans are shot down, I'll stand corrected.
