According to the USA TODAY, dated 6/1/07,

The federal government recorded a $1.3 trillion loss last year – far more than the official $248 billion deficit – when corporate-style accounting standards are used, a USA TODAY analysis shows.

The loss reflects a continued deterioration in the finances of Social Security and government retirement programs for civil servants and military personnel. The loss – equal to $11,434 per household – is more than Americans paid in income taxes in 2006.

“We’re on an unsustainable path and doing a great disservice to future generations,” says Chris Chocola, a former Republican member of Congress from Indiana and corporate chief executive who is pushing for more accurate federal accounting.

Modern accounting requires that corporations, state governments and local governments count expenses immediately when a transaction occurs, even if the payment will be made later.

The federal government does not follow the rule, so promises for Social Security and Medicare don’t show up when the government reports its financial condition.

Definitely sounds like the government is already bankrupt. Of course, it can always print more money, so it’ll never really be bankrupt. The only disadvantage is that the US Dollar will fall in value against other currencies and against gold and other global commodities. Its already fallen signficantly against european currencies and also other currencies like the Indian Rupee and Australian Dollar. And the Canadian Loonie is the strongest its been in 30 years! Not a very comforting trend!