So, is the US bankrupt?

[TriSec]

I just received the following message from Proxymed, an electronic claim clearinghouse. So, apparently the Administration is resorting to Klingon Math in order to "reduce deficits"?

It appears to me that they are "floating a check" by the way I read this. So is it official? The United States can't cover a Medicare payment?

Deficit Reduction Act of 2005 - 9-Day Payment Hold

This message is a reminder for all providers and physicians who bill Medicare contractors for their services.

A brief hold will be placed on Medicare payments for all claims during the last 9 days of the Federal fiscal year (September 22 through September 30, 2006). These payment delays are mandated by section 5203 of the Deficit Reduction Act of 2005. Under the Healthcare Integrated General Ledger

Accounting System (HIGLAS), Medicare contractors will continue to receive and process all claims during this timeframe, however payments due and remittances for these payments will be temporarily held.

No interest will be accrued and no late penalties will be paid to an entity or individual by reason of this one-time hold on payments. All claims held during this time will be paid on October 2, 2006.

[ThomWV]

1. Yes, We're Broked As A Bitch, But That's Not The Evidence

I recall that was done for some administrative reason but it doesn't discount the fact that we, as a people, are spending more than we make, are earning less, and are working longer and harder than ever to do it.

Here is something worth repeating to your Republican Friends.

In the 230 years of this country's existance, and figuring up to the end of the pimp's Presidnecy, the total debt of the United States will reach $10 Trillion. That is an estimate from Treasury. Of that $10 Trillion dollars, an amount so large I do not know how many zeros it has in it, fully 80%, or $8 trillion dollars of debt was racked up by three Presidents; Reagan, Bush-1, and Bush-2. Think about that, Reagan and his follow-ups did over three quarters of the entire debt of this nation over its 230 year history.

[Kutjara]

2. It's a hidden tax on the less-well off.

Essentially, the Government has awarded itself nine days of free money. They won't pay interest or late fees on this money, so it can sit in interest bearing accounts for that period, with the interest being skimmed off to pay down the deficit (yeah, right). So Uncle Sam is basically sitting on your money and then pocketing the interest that rightfully belongs to the ultimate benificiaries of the payments.

"Tax' is the only word I know that fits this sort of activity. I guess they have to fund the tax cuts for the rich somehow.

[hughee99]

4. Is it doing this with all government payments???

"This message is a reminder for all providers and physicians who bill Medicare contractors for their services."

It sounds like they're doing this to health care providers and physicians, not to the "less-well off"

[Kutjara]

5. You're right, I missed that it was only the care providers...

...who'd be getting delayed payments. It's still an indirect tax, but not one imposed on Medicare recipients.

[ThomWV]

7. Government Money Doesn't Sit In Interest Bearing Accounts

In fact it doesn't even exist until the Governement says it does.

[CanonRay]

3. It's to defer expenses until the next fiscal year.

I believe the figure was 5.5 billion. That way, the budget defict doesn't look as bad during the election! Voodoo economics.

[zbdent]

6. If a business ran the same way as the Repukes have run the US for

the past 10 years, the business would have been shut down, and all their assets would have been seized and sold at an auction, and the owners would never be able to show their faces again ...