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Date: February 25, 2009

In this testimony we supplement our earlier letter, which responded to specific questions
on the first exposure draft. Here we set out general principles of federal budget
accounting, and then we offer specific comments on the proposed reporting procedures in
both of the exposure drafts.

Testimony Submitted by:

James K. Galbraith, Lloyd M. Bentsen, jr., Chair in Government/Business Relations,
Lyndon B. Johnson School of Public Affairs, The University of Texas at Austin, Austin
TX 78712 and Senior Scholar, Levy Economics Institute. Galbraith@mail.utexas.edu

L. Randall Wray, Professor of Economics, the University of Missouri-Kansas City, and
Senior Scholar, Levy Economics Institute. wrayr@umkc.edu

Warren Mosler, Senior Associate Fellow, Cambridge Center for Economic and
Public Policy, Department of Land Economy, University of Cambridge, and Valance
Co., St Croix, USVI. warren.mosler@gmail.com

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