People just don’t want to hear it.
By GC Stevenson  01/07/2009

The headlines read “States to ask for $ 1 Trillion in a two year aid package, 2009”. The new stimulus bill will be on the Presidents desk on January 20, 2009, with debate in Congress first part of January 09’. 

Governors of five U.S. states urged the federal government to provide $1 trillion in aid to the country’s 50 states to help pay for education, healthcare and infrastructure as most states struggle with their own budget deficits during a deepening recession.

Additional fiscal news came from Washington this week, when President -elect Obama said the annual Federal Budget Deficit, will be “trillion-dollar deficits for years to come“, concluding that the stimulus package will be more than a one time event. What a smart man.

STOP! And wonder, and give some thought. What is a trillion dollars?
It’s a one, followed by count them, 12 zero’s, $ 1,000,000,000,000. 

 (Compounding, Relativity)Albert Einstein once said, “The most powerful force in the universe is compound interest.” Was he a smart man?  No, he was a genius; I wonder how he would look at a trillion dollars? 

-Now, this will be fast so please pay attention.

Compound a trillion dollars at 3% each year, which equals $ 30,000,000,000 (30 billion) a year in interest alone to finance that debt, stimulus package alone. The U.S. Treasury sells Government bonds; a 10 year Treasury note pays 3.09%, as of 1-07-2009. Thirty billion is a 3 followed by 10 zero’s more simply $ 30,000,000,000.

Okay try calculating that for ten years (kicking it down the road); at 3% each year with no principal paid down,- compounded- that $ 1 trillion will grow to or equals, $1,343,900,000,000  (1.35 Trillion) and the interest then will equal $ 40,000,000,000 (40 billion) a year in interest alone.

And finally in 2029 (twenty years) compounded at 3% interest with no principal paid down, -compounded- that $ 1 TRILLION will grow to or equal $ 1,806,000,000,000 (1.8 Trillion) in 2029 and the interest then will come to $ 54,000,000,000 (54 billion) a year, in interest alone, provided Treasury rates remain at 3%. This is the impact of the most powerful force in the universe, on that supposedly one time stimulus package.

Now entertain the total U.S. fiscal national debt (not budget deficit or National Debt) both on and off book, which includes Social Security and Medicare all, and not counting Swap’s that’s another $ 33 trillion and the figure is, a chilling or frigid $ 53 trillion, estimated in 2007 by (I.O.U.S.A.) David M. Walker former head of the General Accounting Office GAO. [Estimated 2008 $ 56 trillion]

STOP! Here we go again; $ 53 Trillion -Compounded- at just 3% each year equals $ 1,590,000,000,000 (1.6 Trillion) a year in interest payments alone.

In ten years at 3% each year with no principal paid down and compounded, that $ 53 trillion will grow to or equal $71,227,568,000,000  (71.3 Trillion) and the interest at that time will equal $ 2,136,700,000 (2.14 Trillion) a year, again, in interest payments alone.

And finally in 2029 compounded at 3% interest with no principal paid down, -compounded- that $ 53 Trillion will grow to or equal $ 95,723,000,000,000 (95.7 Trillion) in 2029 and the interest then will equal $ 2,871,000,000,000 (2.87 Trillion) a year, again and again, in interest alone. This is the impact of the most powerful force in the universe on our total debt.

You may think it’s tough now but just wait for in twenty years time the gravity of this force is disastrous. That interest, if we are lucky to borrow anything from China, Japan or any other universal entity, and get it at just 3% will total: $ 2,871,000,000,000 ($ 2.8 Trillion).

Now, do you know what a Trillion dollars is?

America is a nation of Indentured Slaves

What if it was reversed, what if you owned?
What if the theory of compounding worked in your favor?
What if it was of, by and for the people, who received the interest/ earnings on production?

Debt Slavery

Knowing this force well, it is no wonder, that the Federal Reserve Bank is the ‘preferred buyer’ or ‘buyer of last resort’ of Treasury Debt, and Fannie and Freddie debt, as of this time. Ask yourself why is that , and more important how is it, that a Private Banking system like the Federal Reserve, can buy its own nations debt obligations… where do they get the money and who owns the Federal Reserve Bank? (Focus on the Fed.) Can they do that? Does the commerce clause in the US Constitution cover this and what is money?

Trailer to Money is Debt (Slavery)

The poison pill above that we are asked to swallow, is only possible provided Congress doesn’t spend a penny more, there is no war, no additional stimulus spending, no interest rate inflation, full production and no increase in Baby Boomers healthcare spending or others, and that’s not going to happen. “Yes we can”

That’s the negative side of the balance sheet.

Let’s look at the income side;

Total GDP- Gross Domestic Product equals $13.81 trillion (2007 that was a good year, the recession hadn’t really started yet). GDP is all of what the nation produces. It’s expected to drop by 5% for 2008.

So, in the year 2029 (twenty years) in order to pay off the total deficit in one shot (hypothetically), taking all of what we produce (the GDP) it would take 8.5 years to pay it all off, with no interest added. Or 10 years with that 3% interest adjustment. Think on this, for ten years in order to pay off all the debt, what would we or our children live on? And what if we sold everything we owned and produced? Would it be enough? – NO.

http://www.youtube.com/watch?v=O_TjBNjc9Bo [Link]
I.O.U.S.A.

David M. Walker his new employer; The Peter G. Peterson Foundation (PGPF) reported on December 15, 2008 that, the sum of America’s liabilities and other financial commitments now exceeds the collective net worth of its citizens, the PGPF has calculated using the latest official data. Growth in the government’s unfunded promises for social insurance programs such as Medicare, combined with a drop in Americans’ net worth due in part by lower home equity values, is causing this unprecedented milestone.

The Foundation’s calculations are based primarily on the new consolidated federal financial statements as of September 30, 2008 which do not reflect the additional toll taken by more recent market declines, bailout packages, and record October and November deficits. The financial statements show approximately $56.4 trillion in debts, liabilities, and unfunded promises for Medicare and Social Security versus the Federal Reserve’s estimate a total household net worth of $56.5 trillion, both as of  September 30, 2008. Now add in the “New” Administrations Stimulus package(s) and “trillion-dollar deficits for years to come” and what do you get? –Bankruptcy-

In case your wondering what $ 56.4 Trillion at 3% compounded for twenty years, will total $ 102 Trillion, and it is $ 3.56 Trillion in annual interest payments alone. “People just don’t want to hear it” – Total Denial-

Debt Slavery

The mantra from both major political parties, administrations, mayors and now the States is “we aren’t going to raise taxes… on citizens–directly”. We will do it indirectly –through debt. We will even give you back a little of what you pay us, and call it a “Tax cut”, or ‘Free Candy from the Candyman’.

(Keyes On Taxes)

Tax Slavery 

The story is told that the most horrific after math of the sinking of the Great Titanic,

 isn’t so much the rate of dissent of that marvelous giant, or the mass of people lost, or the manor by which so few survived; It was the truth told by ‘memories witnesses’, held by those fortunate to survive, to behold that carnage of those floating in the cold dead sea. And to share that same truth with others, that did not perceive that truth. Death their helpless breath frozen reminds us each of their despair and loss. That is the definition of Depression – ‘the truths of memories witnesses to a horrific event’, their history if told. (“The Forgotten man” – Amity Shlaes)

“the truths of memories witnesses”

Ocean of Memories

You as I, may be fortunate to survive this, that which upon us now lies, but don’t be surprised or deceived for that which your eyes will deny. Cry out if you are alive. Fight with every breath, for the cold dark sea of debt, waits. If not for you it waits; it waits for your neighbor; it waits for your family and friend’s, and most certainly waits for posterity’s seed, the next generation. That cold dead grip, our nation’s debt toll is a death toll.

“Do you want to live or do you want to die”

Death of Titanic

Now do you know what a trillion dollars is? “People just don’t want to hear it – the truth”.

Wage Slavery

Our life income we must protect, especially in times of economic hardship, people become concerned with securing income. “I must get on that life boat; I don’t care if it requires that I bail or who else must die”. Most all will submit, conscientiously or unconscientiously, and most eagerly to effective slavery. The wage slavery mentality rules over 70 % of households today because of the yoke and burden of that debt or loss of wage. Karl Marx quite rightly called this the plight of the property less workers. He also said; “give capitalist enough rope and they will hang themselves”.

The wage slavery mentality finds no solace in either Marx’s socialist wage slavery or in America’scapitalist wage slavery. Neither capitalism nor socialism makes little difference to the (Debt) Slave, they own nothing not even the pail to bail or the rope to hang. Blessed are the poor in spirit. “People just don’t want to hear it”.

The problem with this obsession with wages as the only legitimate way to earn income and stay alive is that it locks people into a slave system, a mentality of unending servitude. Thereby adding a new meaning and dimension to the words “better red than dead” or “better a slave and live, and to pray for a good master”.

“What would I do free, I can’t swim”. We are conveniently convinced by ‘those that own’ that there is no alternative to the wage system, no third way (just or otherwise) to monopolistic capitalism, socialism, or a surreal mixture of the two, “you’re just going to have to swim, with no life vest”. People, would just as soon stay on the Plantation or on the deck of the sinking ship, until another boat comes along or Homesteading in 1862. This paradigm of waiting causes people to dismiss the Just Third Way or freedoms choice, particularly it’s “Capital Homesteading” proposal, because it doesn’t fit into their preconceived ideas concerning income generation in a modern industrial or service economy, nor does it fit our post modern conditional reflexes of ownership (Pavlov’s).  And yet the Federal Reserve has found these tools most helpful to their own end. To build their own life boat filled with their selected corporations and elite. Through Section 13; (Emergency Powers) Federal Reserve Act.; their own Capital Homestead Act.

Missing the point of Empowerment
“Looking at The System”

The Just third way thesis is out side academia’s (those smart folks) black box, as is a ‘Binary Economic” model (LIFE boat). The original Homesteaders knew well, that their labor could and would have a productive good (God willing) and a higher probability of survival. As long as the homesteader could ‘own” he could create, repair, defend and with a moral certainty survive and produce (subdue and multiply). And with the multitude of homesteaders all around them, they could and would nurture each other with a sense of common good. So when in this age the Economic Titanic hits the ice berg, people just don’t want to hear it. People and economists would prefer to just move the deck chairs on the Titanic until the panic attacks. They will just sit and listen to the music as if nothing is wrong, and “Hope” for “Change”. (By 1900, there was estimated 2 million homesteaders in America)

Those in panic will grasp first for life preservers (more debt), and others (unemployed) will fight for that hope of a wage and fewer still find their (Just) way to that life boat. We will go back to Homesteading (That is the home) one way or another, either in the grave or as “”.

Those fortunate survivors (“memories witnesses whose truth be told”) our posterity.

Debt Slavery

Debt slavery is part of the culture of death, which covers most all of us. If your provided for, and looking forward to your next Social Security check or Pension check you better get off your deck chair and take a look at that cold dark sea below. Just because your next in line to get into that life boat or into the water with your life vest, doesn’t mean you can’t be pushed out or overboard, or that you can handle the fall, to that freezing dark sea.

Ask anybody that has a General Motors – United Airlines- Enron-, Pension. Ask them if they are secure in their “pension” income. Ask the pensions that had money in the Bernie Madoff scam. Ask the teachers in Illinois who have lent their Government millions of dollars, if they feel secure. Or any number of faltering companies that where fortunate to have such a safety net, is it secure? Ask this generation with their  401-k or I.R.A., is it secure?

A scam is defined by two things, 1) a lie of what you owe and 2) a lie of what you earn. And ends with a lie, an inability to pay it back. As “Keepers of the Promise”, have you checked out the lie of Social Security. It makes Mr. Madoff look like an alter boy, and is his only defense, “the Social Security system did the same”. Still don’t see it, “What is a special issue bond?”. Thou shall not steal.

Do you know what a trillion dollars is yet or are you hooked on the candy?

Welfare Slaves 

Up to this point, we have not even examined the personal or self inflicted slavery/sin called revolving credit debt, but why should we? Elisabeth Warren does a fine job explaining this paradox for the “End of the Middle class”. And with scientific examination, gives the plain truth for families held as debt slaves. “The idea that the American family will quickly spend us out of this recession is a fantasy. It won’t happen,” said Elizabeth Warren, a professor of law at Harvard University who last month was named chair of the Congressional oversight panel tasked with overseeing the distribution of the government’s Troubled Asset Relief Program funds, TARP. She has been fighting the Credit Card scamers for over 12 years. People just don’t want to hear it.

Elizabeth Warren

The Coming Collapse of the Middle Class

It is the natural law broken, that brought all of this upon us, a willingness to spend that which we did not produce or own, basically ‘stealing’. It began, caressed by “free” candy, credit cards first taste of addiction, then binds and holds. And when the debt gets too high, just transfer that balance into your home equity and get a tax deduction, with no money down. It’s always the other guy’s problem and yet it effects every one of the slaves on the plantation. Is not your Governor asking for a bail out, more ‘free’ candy. And now another ill wind blows, for bailing out the Municpal bond markets. “ People just don’t want to hear it.”

“Let them get their own life boat! Hay massr! I got a great idea, why don’t we sell off a few of them ‘tharr’ slaves, break up a few of the families, kill their babies (in the womb) and the rest of us will be alright”. To say that no one can be a slave today is rubbish. Slavery is sin, it effects all, and destroys the common good and virtue, our solidarity. And saying nothing for my brother.

Debt slaves, Tax slaves, Welfare slaves, Wage and salary Slaves- in makes no difference, when the Titanic is sinking and the Plantation is in Bankruptcy, it matters little to your condition. Except for those “memories witnesses of the truth” our posterity.  People just don’t want to hear it. 

America’s slave Plantation                                                                                                                             

‘Capital Homesteading Now’ is the only life boat and refuge. And it’s as big as you can make it. “Noah!, build me an arch”. And this time you own it. The angel of God’s wrath is truly upon this nation and while I and many pray for divine mercy the Titanic sinks. But until we wake up to ‘He’ who is the ‘truth’ and the ‘way’ there will be no “Change or Hope”.

So with all this unreported news, I have to ask a question;

“Why don’t people want to hear it, or is the ‘truth’ not being told”?
I beg, find consolation, in the later and seek the ‘truth’.

 “I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of the currency, first by inflation, then by deflation, the banks and corporations that will grow up around the banks will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered.” (or wake-up not at all) – Thomas Jefferson, 1802

Was Jefferson thinking Bank credit cards, and is, Warren Buffet the “Oracle of Omaha”  and largest owner, shareholder of same? (No, it’s not a sin to charge 25% interest! –compound that-)

“Conventional wisdom says there is only one way to earn a living, and that’s to work. Conventional wisdom effectively treats ‘capital’ as though it were a kind of holy water that when sprinkled on or about labor, makes it more productive. Thus, if you have a thousand people working in a factory and you increase the design and power of the machinery so that one hundred men can now do what a thousand did before, conventional wisdom says, ‘Voila it’s a miracle! The productivity of the labor has gone up 900 percent!’ I say ‘hogwash.’ All you’ve done is wipe out 90 percent of the jobs, and even the remaining ten percent are probably sitting around pushing buttons. What the economy needs is a way of legitimately getting capital ownership into the hands of the people who now don’t have it.”
(Louis O. Kelso, Journal Asset Based Finance, 1982)

In effect convential wisdom would prefer replacing wage/salary slaves with “energy slaves”, they are cheaper.

Although all men are born free, slavery has been the general lot of the human race.Ignorant – they have been cheated; asleep they have been surprised; divided – the yoke has been forced upon them. But what is the lesson?…the people ought to be enlightened, to be awakened, to be united, that after establishing a government they should watch over it…It is universally admitted that a well-instructed people alone can be permanently free.
–James Madison

People just don’t want to hear the truth, because ignorance is bliss.

“It is absurd to entrust the repair and defense of a country to people who own no part of it.” Greek historian, Diodorus Siculus

Think about it!

Silent no more
America, own or be owned
_______________________________________________________________________________

Related texts;

Capitalism; An economic/financial system where a relatively small number of individuals own the vast bulk of capital assets, and where the majority of the population is employed at a wage and owns little or no capital. http://just3rdway.blogspot.com/2008/09/when-wall-street-abandoned-its-mission.html

Hey buddy can you lend a fellow a dime or can you pass the ketchup? (How to eat an elephant)http://www.pgpf.org/blog/?storyId=21212

Press release: America will soon owe more than America is worth.
http://www.pgpf.org/newsroom/press/owe/

De Tocqueville’s “Wage Slavery in America” by Michael Greaney
http://just3rdway.blogspot.com/2008/08/de-tocquevilles-wage-slavery-in-america.html

Elizabeth Warren Conversations
http://www.youtube.com/watch?v=S1Uk-DwUvJw
Revolving Debt; “End of Middle Class”
http://www.youtube.com/watch?
v=akVL7QY0S8A&feature=channel

Kiss your 401k good bye;
http://www.aipnews.com/talk/forums/thread-view.asp?tid=861&posts=4#M3238

John Maynard Keynes – America’s Oracle of Economic Theory
http://en.wikipedia.org/wiki/Paradox_of_thrift
Keynes Biography; Why America is flawed.
“If the economic principle, the means to what you strive, is flawed,… so will its end be.”
http://en.wikipedia.org/wiki/John_Maynard_Keynes

Whom shall I Fear!
http://www.aipnews.com/talk/forums/thread-view.asp?tid=723&posts=4#M2214

Tax slavery or Freedom at last; Alan Keyes
http://www.youtube.com/watch?v=zXHWFu4oGDU  

..To be free. Alan Keyes http://www.keyesarchives.com/play.php?mp3=277

*   *   *   *   *

You were bought with a price; do not become slaves of men.

1 Corinthians 7:23

*   *   *   *

“The basic moral problem that faces man as he moves into the age of automation, the age of accelerating conquest of nature, is whether he is really fit to live in an industrial society; whether his institutions will adjust rapidly enough; whether he will rivet himself with an absurd institution like full employment in the economic order when it is not only unnecessary but unadministratable in anything but a slave society; whether freed from the necessity to devote his brain and brawn to the production of goods and services, he can address himself to the work of civilization itself.”
(Louis O. Kelso, 1964)

Edited by gcsteven 2012-01-09 3:24 PM

http://youtu.be/lFCcelORy-o

Money as Debt revised:
“The Secret of OZ” (lend me 5 minutes)

http://youtu.be/swkq2E8mswI

Capital Homesteading Summary

“Money is a new form of slavery, and distinguishable from the old simply by the fact that it is impersonal – that there is no human relation between master and slave.” — Leo Tolstoy (1828 – 1910)

“Wars in old times were made to get slaves. The modern implement of imposing slavery is debt.” — Ezra Pound (1885-1972) American poet.

Edited by gcsteven 2011-08-29 9:11 AM

“Economic Justice” requires spontaneous cooperation-

“Economic Barriers”

…. in the spirit of peaceful revolutionaries. Our goal should be to support and transform the economic barriers through “capitalistic economic expansion”. …we do not mean “Expanded Capital Ownership” approach is a universally applicable one. However, it illustrates the principlesand concepts through which democracy can build a firm social foundation for economic cooperationand growth. Ownership need not be a reality confined to the wealthy few or an all-powerful state.” – Dr. Alan Keyes, July 21, 1986

http://www.youtube.com/watch?v=1Ov0AjPI9gQ [?Alan Keyes – Aristotle Economics]

America’s Economic Challenge; A Democratic response

“Our Founding Fathers well understood that concentrated power is the
enemy of liberty and the rights of man. They knew that the American
experiment in individual liberty, free enterprise and republican
self-government could succeed only if power were widely distributed. And
since, in any society social and political power flow from economic
power, they saw that wealth and property would have to be widely
distributed among the people of the country. The truth of this insight
is immediately apparent.”,… Ronald Reagan

Related text: Aristotle Economics
http://www.quebecoislibre.org/05/050915-11.htm [Link]

Edited by gcsteven 2009-03-18 2:29 PM

You cannot multiply wealth by dividing it.— Dr. Adrian Pierce Rogers, 1931-2005

Poster privilege;

And for those concerned with inflation (Hyper or the “Velocity of money” ) may I suggest some reading of Dr. Hjalmar Horace Greeley Schacht – the “Old Wizard” when in November 13, 1923 was appointed the Commissioner of National Currency. -Germany-Established the Retenmark?! [?Link]

Authored;

• The End of Reparations, published in 1931 

Don’t encourage “This Guy ” ,… He too has a “God given” mustard seed.

Edited by gcsteven 2009-03-23 8:36 AM

Posted: February 13, 2009
11:35 pm Eastern
By Jerome R. Corsi
© 2009 WorldNetDaily

As the Obama administration pushes through Congress its $800 billion deficit-spending economic stimulus plan, the American public is largely unaware that the true deficit of the federal government already is measured in trillions of dollars, and in fact its $65.5 trillion in total obligations exceeds the gross domestic product of the world.

The total U.S. obligations, including Social Security and Medicare benefits to be paid in the future, effectively have placed the U.S. government in bankruptcy, even before new continuing social welfare obligation embedded in the massive spending plan are taken into account.

The real 2008 federal budget deficit was $5.1 trillion, not the $455 billion previously reported by the Congressional Budget Office, according to the “2008 Financial Report of the United States Government” as released by the U.S. Department of Treasury.

Read more… http://www.worldnetdaily.com/index.php?fa=PAGE.view&pageId=88851

Know what a ‘Trillion’ is Yet ?

America’s Tragedy; http://aipnews.com/talk/forums/thread-view.asp?tid=765&posts=5&star…

PGPF Citizens Guide 2009

Send it to your Representatives,..if you can find one.

 
“Mom, Dad, Gramp’s, where are we going to get, a Trillion Dollars?”

An Obama Speech, Debt and China

http://www.youtube.com/watch?v=NkEtArDFNYA

China is the next Financial Bubble

http://www.youtube.com/watch?v=ndoJHxX3cKA

Obama Says U.S. Long-Term Debt Load ‘Unsustainable’ [May 15, 2009]
http://www.infowars.com/obama-says-us-long-term-debt-load-unsustain…

And the solution is,…..

“Expand Capital Ownership” – Alan Keyes because its your MONEY.

visit “Capital Homesteading Act” www.cesj.org

Wage Slaves

Welfare Slaves

Debt Slaves

Bail-out Slaves

We can add a new one …. Party Slaves (republican or democrat)

“The present Congress would do better to apologize for the slavery they are busily imposing upon us, with the one gesture that would be truthful and effective: resign en masse. Since they won’t do it now, we should apologize for them in 2010.” – Alan Keyes
They decide who lives who dies, who gets a bail out, who gets a bonus, who gets the job, who gets on the ballot, who gets cash for a clunker, who gets health care, and who pays for it all,.. we do the slaves. Welcome to Plantation USA.

We should throw the Bums out. We own nothing.

Edited by gcsteven 2011-07-03 7:42 PM

Three Government Reports Point to Fiscal Doomsday

by Martin D. Weiss, Ph.D.   10-05-09

When our leaders have no awareness of the disastrous consequences of their actions, they can claim ignorance and take no action.

Or when our leaders have no hard evidence as to what might happen in the future, they can at least claim uncertainty.

But when they have full knowledge of an impending disaster … they have proof of its inevitability in ANY scenario … and they so declare in their official reports … but STILL don’t lift a finger to change course … then they have only one remaining claim:

INSANITY!

And, unfortunately, that’s precisely the situation we’re in today: Three recently released government reports now point to fiscal doomsday for America; and one of the reports, issued by the Congressional Budget Office (CBO), says so explicitly:

• The CBO paints two future scenarios for the U.S. budget deficit and the national debt. But it plainly declares that fiscal disaster will strike in EITHER scenario. Furthermore …
• The CBO states that its fiscal disaster scenarios could cause severe economic declines for decades to come, including hyperinflation and destruction of retirement savings.
• The CBO then proceeds to admit that even its worse-case scenario could beunderstated by a wide margin due to panic in the financial markets or vicious cycles that are beyond control.
• Separately, in its Flow of Funds Report for the second quarter, the Federal Reserve provides irrefutable data that we are already beginning to witness the first of these consequences in the United States: an unprecedented cut-off of credit to businesses and consumers.
• Meanwhile, the Treasury Department shows that America’s fate remains, as before, in the hands of foreigners, with the U.S. still owing them $7.9 trillion!
• And despite all this, neither Congress nor the Obama Administration have proposed a plan or a timetable for averting these doomsday scenarios. Their sole solution is to issue more bonds, borrow more, and print more without restraint.

That is the epitome of insanity.

Yes, the great government bailouts of 2008 and 2009 have bought us some time … but they have promptly proceeded to sell us into bondage.

Yes, they have given us safe passage over tough seas … but only to throw our assets onto the global auction block for the highest bidders.

The one bright spot: Unlike some governments, ours does not conceal the evidence of its folly. Quite the contrary, the proof pours forth from these three government reports in relatively blunt language and unmistakably blatant numbers …

Report #1
Congressional Budget Office (CBO):
The Long-Term Budget Outlook

The CBO opens with a chart predicting the most dramatic surge in government debt of all time.

It shows that even in proportion to the larger size of the U.S. economy today, the government debt has ALREADY surpassed the massive debt loads accumulated during World War I and the Great Depression … and will soon surpass even the massive debt load of World War II.

“Large budget deficits,” write the authors of the CBO report, would …

• “Reduce national saving,” leading to …
• “More borrowing from abroad” and …
• “Less domestic investment,” which in turn would …
• “Depress income growth in the United States,” and …
• “Seriously harm the economy.”

Worse, on page 14, the CBO warns that:

• “Lenders may become concerned about the financial solvency of the government and …
• “Demand higher interest rates to compensate for the increasing riskiness of holding government debt.” Plus …
• “Both foreign and domestic lenders may not provide enough funds for the government to meet its obligations.”

The magnitude of the problem cannot be underestimated. The CBO declares on page 15that:

• “The systematic widening of budget shortfalls projected under CBO’s long-term scenarios has never been observed in U.S. history” and …
• It will also be larger than the debt accumulations of any other industrialized nation in the post-World War II period, including Belgium and Italy, the two worst cases of all.

But the CBO admits that even these frightening projections may be grossly understated because:

• “The analysis omitted the pressures that a rising ratio of debt to GDP would have on real interest rates and economic growth.”
• “The growth of debt would lead to a vicious cycle in which the government had to issue ever-larger amounts of debt in order to pay ever-higher interest charges.”
• “More government borrowing would drain the nation’s pool of savings, reducing investment” and …
• “Capital would probably flee the United States, further reducing investment.”

But none of these are factored into the analysis. On page 17 of its report, the CBO writes …

“The analysis … does not incorporate the financial markets’ reactions to a fiscal crisis and the actions that the government would adopt to resolve such a crisis. Because [our] textbook growth model is not forward-looking, the analysis assumes that people will not anticipate the sustainability issues facing the federal budget; as a result, the model predicts only a gradual change in the economy as federal debt rises.

“In actuality, the economic effects of rapidly growing debt would probably bemuch more disorderly as investors’ confidence in the nation’s fiscal solvency began to erode. If foreign investors anticipated an economic crisis, they might significantly reduce their purchases of U.S. securities, causing the exchange value of the dollar to plunge, interest rates to climb, and consumer prices to shoot up.(Bolding is mine.)

Report #2
U.S. Federal Reserve:
Flow of Funds Accounts
of the United States

The Fed’s data on page 12 tells it all: The impact on the U.S. credit markets is not just a future scenario. It’s happening right now.

Yes, the government is getting its money to finance its exploding deficits (for now). But it’s hogging all the available supplies, while American businesses and average consumers are getting shut out or even shoved out.

Specifically …

• In the first half of last year, the U.S. Treasury raised funds at the annual pace of $411 billion in the first quarter and $310 billion in the second quarter.
• But if you think that was a lot, consider this: THIS year, the Treasury has stepped up its pace of borrowing to annual rates of $1.443 TRILLION in the first quarter and $1.896 TRILLION in the second quarter. That’s 3.5 times and over SIX TIMES MORE than last year’s, respectively.

Meanwhile, the private sector is getting killed …

• Last year, banks provided new credit at the annual pace of $472.4 billion in the first quarter and $86.7 billion in the second. This year, they’re not providing ANY new credit — they’re actually LIQUIDATING loans at the rate of $857.2 billion in the first quarter and $931.3 billion in the second. So if you’re running a business, you may want to think twice before asking your bank for more money. Instead, they may decide to TAKE BACK the money they’ve already loaned you!
• Ditto for mortgages. Last year, mortgages were being created at the annual clip of $522.5 billion and $124 billion in the first and second quarters, respectively. This year, on a net basis, mortgages haven’t been created at all. Quite the contrary, the Fed reports that, on a net basis, they’ve been liquidated at an annual pace of $39.3 billion in the first quarter and $239.5 billion in the second.
• Getting cash out of credit cards and other consumer credit is even tougher. Last year, folks were able to add to their consumer credit at annual rates of $115 billion and $105 billion in the first two quarters. This year, in contrast, they’ve been forced to CUT back on their credit at annual rates of $95.3 billion in the first quarter … and at an even faster pace in the second quarter — $166.8 billion.

Never before in my lifetime have I witnessed a more severe case of crowding out in the credit markets!

And never before has the CBO been so right in its forecasts of fiscal doomsday: One of its dire forecasts was already coming true even before it issued its report.

Report #3
U.S. Treasury Department: 
Treasury Bulletin

Each and every month, the Treasury reminds us of the single fact that no one in the Treasury wants to face:

The U.S. is deep in debt to the rest of the world, and on page 48, it provides the evidence: total liabilities to foreigners of $7,898,435 million (nearly $7.9 trillion)!

This isn’t a new record. It was actually slightly more last year. But the fact is NOTHING has been done to reduce our debt to foreigners. Quite the contrary, it is the deliberate policy of our government to pile up more — to sell foreign investors and central banks on the idea that they must continue to lend us money.

The fact that this could potentially put our nation into deeper jeopardy is overlooked. And the dire forecast by the CBO that foreign investors might pull the plug is pooh-poohed.

Stay alert to our emails for specific instructions on how to harness these potentially overwhelming forces and harvest them for profits.

Good luck and God bless!

Martin

P.S. If you want to see exactly where I get my quotes and data, just click on the page numbers cited above, and you’ll see the relevant pages I’ve extracted from the government reports with the critical information highlighted in yellow.

This investment news is brought to you by Money and Markets. Money and Markets is a free daily investment newsletter from Martin D. Weiss and Weiss Research analysts offering the latest investing news and financial insights for the stock market, including tips and advice on investing in gold, energy and oil. Dr. Weiss is a leader in the fields of investing, interest rates, financial safety and economic forecasting. To view archives or subscribe, visithttp://www.moneyandmarkets.com.

  -Albert Einstein

“Insanity: doing the same thing over and over again and expecting different results.”

Yes!; Conservatives do have a better idea,…

‘Expand Capital Ownership Now’ – Ask Alan

Also found a hosting of “Money as Debt II: Promises Unleashed” (77 min.)
http://vimeo.com/6822294

References for all the quotes in both videos here:
http://paulgrignon.netfirms.com/MoneyasDebt/references.htm

Debt ‘R’ U.S. –You

http://www.youtube.com/watch?v=Cd-SLRyuRq0

Plantation USA – Whom Should I Fear? -10/20/2008–*

and then again,.. ‘I Quit” :)

The Hidden Costs of Too Much Government Debt

by Mike Larson   11-20-09

This week was a fascinating one on the geopolitical front. [Alleged] President Barack Obama travelled to China in what was billed as a major diplomatic trip.

The idea? Try to reach common ground on several fronts, including global nuclear proliferation, environmental issues, and especially China’s currency …

The U.S., Europe, and even some of China’s Asian neighbors believe that China is artificially suppressing the value of its currency, the renminbi or yuan. That, in turn, is giving China an artificial advantage in global trade by making its exports more competitive vis-à-vis those of other nations.

But you know what Obama came home with? Not much of anything. A joint statement here. A stiff, “no questions asked” press conference there. Substantive progress was nowhere to be found.

That’s disturbing — and it reflects a very uncomfortable fact: The balance of power between the U.S. and China has shifted largely in China’s favor because of our overreliance on China to fund our profligacy. In fact, I believe that this shift is one of the single biggest “hidden” costs of our massive government debt load.

Debt Costs Keep Rising,
With No End in Sight!

You don’t need me to tell you that our public debt is enormous. As of this week, it came to $12,031,299,186,290.07. That’s more than $12 TRILLION in case you have trouble grasping a number that big. In just the past decade, it’s up more than 111 percent.

Things are only going to get worse, too, because Washington has completely abandoned any semblance of fiscal discipline! We’re running ever-larger budget deficits, including $1.42 trillion in fiscal 2009 alone.

The interest cost alone on our debt last year was $202 billion. That’s enough to send every man, woman, and child in this country a $656 check. Keep in mind that those costs were artificially low because of the lowest short-term rates in history due to the Fed’s rate cuts. Moreover, the flight-to-quality rally in government bonds helped keep longer-term rates low.

As bond prices fall, rates rise, and absolute debt levels climb ever-higher. That number is going to spiral upward. In plain English, we’re going to be dedicating a larger and larger share of the U.S. budget just to pay interest on our debt. Forget about defense, health care, Social Security or anything else.

He Who Controls the Purse Strings 
Makes the Rules …

But again, those are just the VISIBLE costs. The HIDDEN costs are much, much worse over the long term.

China owned $799 billion of our Treasury debt as of September. That’s up from $618 billion a year earlier and $468 billion the year before that. About 61 percent of the Treasuries traded in the marketplace, as of mid-2008, were in foreign hands. And now, China has surpassed Japan as the largest foreign owner. That means they control the purse strings.

Heck, China is such an 800-pound gorilla in our debt market, they don’t even have to dump their existing bond horde to send prices plunging and interest rates surging. They can just step back and buy fewer bonds at auction!

China knows this. What’s more, the country’s leaders are so confident in their position of strength that The New York Times reported the following about the China-U.S. trip …

“In six hours of meetings, at two dinners and during a stilted 30-minute news conference in which President Hu Jintao did not allow questions, [Alleged] President Obama was confronted, on his first visit, with a fast-rising China more willing to say no to the United States.

“On topics like Iran (Mr. Hu did not publicly discuss the possibility of sanctions), China’s currency (he made no nod toward changing its value) and human rights (a joint statement bluntly acknowledged that the two countries “have differences”), China held firm against most American demands.

“With China’s micro-management of Mr. Obama’s appearances in the country, the trip did more to showcase China’s ability to push back against outside pressure than it did to advance the main issues on Mr. Obama’s agenda, analysts said.”

That’s not all. Chinese officials have taken to frequently lecturing the U.S. about how to run our monetary and fiscal policy.

One example: The chairman of the China Banking Regulatory Commission, Liu Mingkang, just warned that …

“The continuous depreciation in the dollar, and the U.S. government’s indication, that in order to resume growth and maintain public confidence, it basically won’t raise interest rates for the coming 12 to 18 months, has led to massive dollar arbitrage speculation.”

He added that …

“The U.S.’ monetary policy has seriously affected global asset prices, fueled speculation in stock and property markets, and created new, real and insurmountable risks to the recovery of the global economy.”

Not very subtle. But also not surprising in light of the shifting balance of power.

Bottom line: We’re in hock as a nation like never before. Neither the administration nor Congress has any plan to change that fact. And both the actual and hidden costs of our debt are rising every day. We should all be concerned, and anyone who tells you otherwise is, in my view, woefully misguided.

Until next time,

Mike

This investment news is brought to you by Money and Markets. Money and Markets is a free daily investment newsletter from Martin D. Weiss and Weiss Research analysts offering the latest investing news and financial insights for the stock market, including tips and advice on investing in gold, energy and oil. Dr. Weiss is a leader in the fields of investing, interest rates, financial safety and economic forecasting. To view archives or subscribe, visithttp://www.moneyandmarkets.com.

---

 

PS. Thanks Mike for responding to my Posts. -GCSteven

TATBO, before it’s too late.

, particularly its “Capital Homesteading” proposal because it doesn’t fit into their preconceived ideas concerning income generation in a modern industrial economy.As a case in point, Yahoo! just got around to posting an article from U.S. News and World Reportpublished July 25, 2008. The article by Liz Wolgemuth, “9 Reasons Your Salary Isn’t Higher,” while obviously well-researched and thoughtful, leaves out one very important reason some people don’t make as much as others: they are relying solely on the perceived value of their labor to an employer. They own no significant amount of income-generating assets.

The article centered on various factors that affect the price of labor, such as sex, social abilities, even height, but did not consider total income. The underlying problem most affecting income — the relative abundance of labor — was not addressed. As long as purchasers of labor (employers) have an effective monopoly on access to the means of income generation, they will, ultimately, determine who gets paid and how much. Artificial manipulation of wages drives up the price of goods and services, and (contrary to the intent of those doing the manipulation) creates incentives to replace expensive labor with cheaper alternatives.

More than a century and a half ago Alexis de Tocqueville in Democracy in America pointed out the way to break the current monopoly on access to income. The quote is long (and I was honestly trying to make this a short entry . . .), but well worth reading:

“I shall take for example that branch of productive industry which is still at the present day the most generally followed in France, and in almost all the countries of the world – I mean the cultivation of the soil. In France most of those who labor for hire in agriculture, are themselves owners of certain plots of ground, which just enable them to subsist without working for anyone else. When these laborers come to offer their services to a neighboring landowner or farmer, if he refuses them a certain rate of wages, they retire to their own small property and await another opportunity. (where do the unemployed retire,- Nov. 2009? Here*)

“I think that, upon the whole, it may be asserted that a slow and gradual rise of wages is one of the general laws of democratic communities. In proportion as social conditions become more equal, wages rise; and as wages are higher, social conditions become more equal. But a great and gloomy exception occurs in our own time. I have shown in a preceding chapter that aristocracy, expelled from political society, has taken refuge in certain departments of productive industry, and has established its sway there under another form; this powerfully affects the rate of wages. As a large capital is required to embark in the great manufacturing speculations to which I allude, the number of persons who enter upon them is exceedingly limited: as their number is small, they can easily concert together, and fix the rate of wages as they please. Their workmen on the contrary are exceedingly numerous, and the number of them is always increasing; for, from time to time, an extraordinary run of business takes place, during which wages are inordinately high, and they attract the surrounding population to the factories. But, when once men have embraced that line of life, we have already seen that they cannot quit it again, because they soon contract habits of body and mind which unfit them for any other sort of toil. These men have generally but little education and industry, with but few resources; they stand therefore almost at the mercy of the master. When competition, or other fortuitous circumstances, lessen his profits, he can reduce the wages of his workmen almost at pleasure, and make from them what he loses by the chances of business. Should the workmen strike, the master, who is a rich man, can very well wait without being ruined until necessity brings them back to him; but they must work day by day or they die, for their only property is in their hands. They have long been impoverished by oppression, and the poorer they become the more easily may they be oppressed: they can never escape from this fatal circle of cause and consequence. It is not then surprising that wages, after having sometimes suddenly risen, are permanently lowered in this branch of industry; whereas in other callings the price of labor, which generally increases but little, is nevertheless constantly augmented.”

The problem becomes how to bring about this happy (or, at least, less gloomy) state of affairs. CESJ’s “Capital Homesteading” proposal, which would open up democratic access to the means of acquiring and possessing private property to everyone, has the potential to accomplish this goal. It should be studied by every American, and every candidate for public office in the upcoming election.

by Michael D. Greaney – Monday, August 18, 2008

Capital Homesteading Summary

“It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.” — Henry Ford (Tag time 1:40:50 – ‘The Secret of OZ’)

And if God’s people (We the people) were ever to figured out ownership, the world would change and theirs would be a people of hope.

God, Family and Country. 

“People just don’t want to hear it.”

U.S. debt is now equal to economy

January 9, 2012

 By Richard Wolf, USA TODAY

WASHINGTON – The soaring national debt has reached a symbolic tipping point: It’s now as big as the entire U.S. economy.

The amount of money the federal government owes to its creditors, combined with IOUs to government retirement and other programs, now tops $15.23 trillion.

That’s roughly equal to the value of all goods and services the U.S. economy produces in one year: $15.17 trillion as of September, the latest estimate. Private projections show the economy likely grew to about $15.3 trillion by December — a level the debt is likely to surpass this month.

Read more: U.S. debt is now equal to economy http://www.usatoday.com/news/washington/story/2012-01-08/debt-equals-economy/52460208/1

“People just don’t want to hear it.”

http://youtu.be/u24nH03NccI