I decided to plunge into the hell of looking into the US budget’s actual numbers and try to make sense of the whole thing. First off, huge hunks of this budget are MISSING. They are secret. We can’t see these numbers. Ergo: the entire exercise is a frustrating mess. For example, over $200 billion of Pentagon spending is blacked out! Gah! Anyway, it still pays to look carefully. This is because we can see where the real evils lie and trust me, it ain’t in the social sector. Nope. Not by a long shot.
I am not the most beloved poster on the internet. People prefer to sit on one corner or another and plant their battle banners and fight to the death. I am very interested in what is really going on. Not that I know anymore than anyone else. But I do love getting some information so I can be informed. This is a difficult concept for humans, by the way. Even as we amass immense mountains of information, we then turn around and pretend it isn’t there. This is the only way I can explain the story that I am trying to unravel here: it is a NIGHTMARE. People should be running into the Oval Office and screaming, ‘STOP THE DAMN WARS! WE ARE GOING BUST!’
Since no one seems to be doing this, I will do it here, where it is more like trees falling in a forest and no one can hear it bang down except the woodpeckers and bears. Here it goes: the six month report of the Federal Budget:
OK: here is our budget. Mostly in the red according to the Treasury. Look at this graph! Only very briefly, during the last year, did we surface above the red ink depths. After Bush and his buddies finished off our economy, totally, we went totally underwater with no hope of seeing green pastures for the foreseeable future! This is, of course, totally insane and any empire seeing this, should panic. For some odd reason,we think, this is doable. It isn’t.
It is one thing to talk about numbers or even see overall graphs, but looking at all the details and the actual numbers and then fiddling with them, is very fruitful. First of all, you can spot propaganda better. Many, many, many people from one end of the spectrum to the other, like to lie about things for ideological reasons or to cheat us by hiding the truth. We must beware of this! The state has many functions. There are continuous wars over what shall be funded and what should be tossed overboard. This is an important fight.
I, personally, want to chuck about 60% of our imperial military obligations. I want to concentrate on protecting our borders and at the same time, restore our industrial base so it ceases to be a hole in our pocket and resumes being a capitalist system. For in the core, I am a capitalist. I spent 90% of my own life, earning money, on my own, not working for any organization at all. Any profits I made, were mine and mine alone. I love profits. Profits are fun to have and if I have it correctly handled, it becomes CAPITAL which I can invest! Imagine that!
I think I was about 35 years old when I swore, I would have no debts by 60 years of age. I met this goal. It is a very hard goal to gain. My children are doing this, too. I hope, faster than I. They understand what ‘capital’ is and the difference between investments and living arrangements. Namely, the home has to be protected from debt, not used to leverage things since we live in our homes and need them no matter what.
Our entire political class has forgotten what debts are: a wealth machine for someone else! We can’t go on forever, owing money to everyone. We must switch gears or we will become destitute. This is not easy since people suggest balancing things by ditching overboard, Americans, while giving out money with both hands, to aliens or for protecting the entire planet from whatever.
Let’s begin with the raw data:
This is the summary. I put red boxes around the negative numbers and noted the ‘borrowing from the PUBLIC’ part in green because I suspect, this is our Social Security funds being ripped off. Look at the 2010 estimates: slated to run over a trillion in the red. Well, contrast this with 2009 projections! Going almost $2 trillion in the red! Wow! This is just amazing and disgusting!
Remember the ‘budget ceiling’ laws? These were passed during the Reagan doubling the debt problem. It supposedly was a barrier to wild spending. Instead, Congress gave themselves and the Presidents an out: they could raise the ceiling. At first, this was dangerous! The opposing party would always yell about balancing the budget. If one voted to raise the debt, it could be used in an election!
So Congress fixed this by making it a voice vote! And then, the media seldom covered it as it was raised, at first, a little at a time. Then, under Bush Jr, a trillion at a time! Now, multi-trillions! This is insane!
Here, I compare the first six months of last year, which was not a good year but not a catastrophe, and with the last six months of this fiscal year which starts in October. The receipts from last year were $156 billion more than this year. This means, taxes and fees during the last six months, brought in a lot less money than last year. The red numbers are the outlays: last year, we spent almost $1.5 trillion in six months and this year, we spent almost $2 trillion! Which is half a trillion dollars more than last year, at this time!
And we are not done, either! Obama has requested another nearly $100 billion off-budget to toss into the Afghan/Iraq cesspool. This has utterly turned me against him. He is a damn FOOL. An IDIOT. Someone who has no concept of strategy. The strategy of the Taliban and Bin Laden is very simple: to bankrupt America. They know the numbers, they have access to internet information and I am absolutely certain, they and China and Russia as well as Iran and nearly everyone who hates us or knows we aim to destroy them, are enjoying this budget report. Some are probably laughing, knowing, they are winning this war.
This is a total break-down of strategic power. No empire has ever won a war, going bankrupt. If they do win, it is called ‘a Pyrrhic Victory which means, you basically burn down your own kingdom and cut off your own nose. Winning this way is stupid.
Now, I spent several hours, going through the budget. Here are the main items with the money listed in the millions:
- Legislative branch= 2,462
- Judicial= 3,311
- Commerce= 5,280
- Pentagon= 398,662
- Education= 34,739
- Energy= 13,319
- Health= 412,451
- Homeland Security= 30,481
- Housing= 23,142
- Interior= 8,416
- Justice= 13,439
- Labor= 55,140
- State Dept= 10,439
- Transportation= 31,525
- Treasury= 595,085
- Engineers/Environment= 7,718
- White House= 357
- General Service= 309
- Foreign Aid= 18,777
- NASA= 8,931
- Science Foundation=2,742
- Personnel Management= 6,730
- Small Business= 2,193
- Social Security= 348,134 [funds itself!]
- FDIC= 6,395 [outlays this year -2,151, last year, -593]
- Postal Service off budget= 35,387
- Credit Union= 45,042
- Retirement funds= 1,941
- TVA= 16,145
- Other= 54,649
Here are the biggest budget busting outlays according to size:
- Treasury= 595,085= FDIC= 6,395 [outlays this year -2,151, last year, -593] + Credit Union= 45,042—- Total= $646,522
- Pentagon= 398,662 + off-budget war costs 100,000 + Homeland Security=30,481—Total= $529,143 EXCEPT we know it is over $600,000+
- Health= 412,451
- Social Security= 348,134 [funds itself!]
So, our entire government, the biggest monster eating us alive, the thing that comes from the Black Lagoon, the creature that is destroying us is….THE DAMN TREASURY.
I harp on the fact, debts are not wealth. And a Treasury with no money is not a treasury, it is a big hole in the ground, a graveyard. And a Federal Reserve with no reserves is a joke. And here it is, everyone. The Pentago is very close in size to the huge gaping hole of the Treasury! But the Treasury is an immense hole in our pockets, it is making us poorer. It is driving us deep into debt.
Eliminate both the Treasury and Pentagon spending and we see much of the red ink vanish! For these two groups that were supposed to protect us are eating us out of house and home to the tune of over $1.3 trillion this year. Next are the two things servicing American citizens. Health can be fixed by doing what Europe and Canada do. Single payer health plans. And like them, pay for this via gasoline taxes and if we are really daring, we can also have tariff taxes to fix things up. Kill two birds with one stone.
Kill off all spending on off-budget items, too. Save ourselves around $300 billion and incidentally, defund all the think tanks, the CIA, DARPA and so on. Slash them all. Throw them all out. Get rid of them.
Somewhat similar in spirit to the “War Bonds” issued by the US during the latter stages of the First World War, the new products will allow small-time investors to potentially benefit from the uplift in distressed mortgage assets over time.
The US Treasury is encouraging fund managers and other institutions interested in buying up some toxic assets from bank balance sheets to involve ordinary Americans….
The aim of the PPIP is to remove $500bn (in the first instance, with the potential of buying up to $1 trillion) of toxic and distressed mortgage assets from the balance sheets of troubled banks. This would use two different schemes backed separately by the Federal Reserve and the Federal Deposit Insurance Corporation. The US Treasury is seeding the programme with $100bn of government money, which will be combined with the private funds and then leveraged up – in some cases by as much as 20:1 – to buy the assets.
HAHAHA. Buy government bonds so we can fund the DAMN TREASURY. Right! I got it. Why not just print my own money since our banking system has no capital? I say, we should find someone with capital and then, borrow from them. Wait! This scheme is a lure to get the few Americans with capital, to hand it over to the Treasury so they can then hand it over to the bankers who then lend it back to the Treasury to pay for our red ink….I am getting dizzy.
The government must do this because the Chinese dragon won’t bankroll our Treasury and Pentagon. We kicked China too many times in the shins. So I suggest Obama tell the Gollum Sachs clones in the Treasury to use a Fannie Mae female, one that appeals to the sexual lusts of gnomes, to sell US debt to US guys with money. Except the gnomes are all broke. HAHAHA. This is too funny. But it won’t hurt to find some cute kitty to sell these scraps of IOUs.
German Finance Minister Peer Steinbrueck drew up a plan to remove toxic assets from bank balance sheets, based on government funding for financial institutions to set up so-called bad banks.
The Finance Ministry submitted the program to Chancellor Angela Merkel, and administration and finance-industry officials will decide on the details on April 21, the German government said in an e-mailed statement today.
Under the plan banks would create separate units, backed by 200 billion euros ($264 billion) in government funds, into which they’ll be able to transfer assets they can’t sell, Steinbrueck told the Frankfurter Allgemeine Sonntagszeitung in an interview.
Götterdämmerung of the German banking system! Everyone is imitating us. This huge number of Bad Banks will replace the Bankrupt Bad Banks who will then be capitalized by all our taxes, in Germany, in Japan, in France, in the US, etc. And then, we will all borrow from the Bankrupt Bad Banks and any loans that go bad because people can’t pay either interest NOR principal, will be put in the other Bad Banks and then….we all go bankrupt together, all at once.
My previous story about how all the major first cities all died at the same time 4,000 years ago come to mind. I don’t want this but I suppose future archeologists or aliens who notice there are no screaming humans running away when they flash their headlights, will come here and poke around in the ruins, wondering what killed us all off. Imagine if it was too much lending to the wrong people! And too much red ink. That is invisible and is mostly pure numbers parked on pieces of paper or inside computers!
P.O. BOX 483
BERLIN, NY 12022
Make checks out to ‘Elaine Supkis’