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The Big Picture -
Debt Versus Investments

By Walter Burien
WalterBurien@aol.com
5-14-4
 
Walter Burien's reply to Rebekah "Reb" Sutherland, Candidate US Senate -SC
Reb:
 
Some Points for you:
 
1999's figures:
 
Gross income of all "Individuals" in the USA was 8.2 Trillion Gross income for Federal and Local Government was 8.5 Trillion
 
[SOURCE: 1999 Federal Consolidated Annual Financial Report and local government CAFRs]
 
In the 1930s: Government accounted for 5% of the GNP (Gross National Product) In the year 2000: Government accounted for 60 to 65% of the GNP
 
They changed GNP to GDP (Gross Domestic Product) being that "National" included government and "Domestic" signified the Private sector and excluded government thus the showing from the GDP would not be as obvious as to the takeover by government as shown in the GNP.
 
Here is the core issue per the article you sent me that you wanted input on:
 
Government no longer exclusively pays debt by taxation. (Far from it) Taxation is now 35% of their "Gross income." Government having now a gross income equal to or greater than all people in the country allows them to give the appearance of massive debt (if exclusively paying back that debt from taxation) and the biggest illusion they create is from their Enterprise and Investment "Non-Tax" income that they are now buying out or funding most of their own new debt. Debt that they promote to the public for repayment...
 
With the new financial structure within government, that interest return from the debt now contributes significantly towards government's gross income, but on their "Budgetary" basis only the "liability" is shown for repayment of the debt.
 
That repayment of debt aspect is what is force fed for public consumption with the total exclusion of the fact that government has set the game now for the last twenty years to fund their own debt to create income. The same applies towards private mortgages and credit cards. Government is the primary investor with the commercial banks in those arenas also, the banks act as the agent to invest the government funds. (Drove the economy for the last 35 years)
 
This has been coming to light for the last 4 years based on my disclosures. Virtually no one from "General Populace" circles had a clue before. Well, now they do and the pressure is on.
 
I bet you did not know the true reason why interest rates came crashing down to the lowest level in 60 years? Well, the game of government funding their own and public debt by investment was being exposed and the bubble was bursting from the new found knowledge and comprehension learned by some of the general populace.
 
Government (Not the Federal Reserve) was now forced to lower interest rates by bartering down the return they would get on their investments (60 trillion strong domestic and internationally) to soften the blow of the popping bubble. Also, at the same time they increased their international investments and derivative "Short" dollar positions to offset the loss on their domestic returns. [They made a Net profit on that move]
 
When the dollar slid, based on government's foreign currency and capital investments held by US government in China, Mexico, Asia, etc., the appreciation on those investments offset the lower return being accomplished from domestic interest vehicle investments held by them.
 
Have a better sight of the big picture now?
 
Communism with a massive capital benefit twist for the government boys slipped right in under the noses of the general public without them having a clue. But then the general public were masterfully entertained by government administration, the syndicated media, and education being in a symbiotic relationship with each other as the game progressed to make sure the general public did not have a clue so that business as usual for the "Boys" would continue unabated towards the final countdown for world control and domination.
 
Well, I think we all have learned the effects of being entertained by the gang as they take over everything that used to be ours, and have done so right under our own noses, and have done so starting in 1945 building to a runaway freight train in 2004.
 
I pray that the general populace grasps the comprehension behind the TRF (Tax Retirement Fund) that is brought forward on my site http://CAFR1.com
 
Ownership is the Key here. The principle of operation of the TRF will eliminate property, sales, and income tax, AND with downsizing of government back to below 25 to 30% of the GNP, also produce a dividend return back to the population on top of having phased out "all" taxation. Ownership is returned to the general populace through the operation principle of the TRF.
 
The clock is ticking and time is money. The real question here is but for whom is the clock ticking and in that time who will get control over the money? (GNP)
 
I note that within the operation of the TRF the money increases for all and the value of that money is maintained, prosperity explodes...
 
I wish you much success in your run for US Senator in SC.
 
Walter Burien
http://CAFR1.com
P. O. Box 2112
Saint Johns, Arizona 85936
 
 
REB'S COMPLETE EMAIL SENT TO WJB IS AS FOLLOWS:
 
 
Subj: Walter -- Good article -- input?
[Federal spending issue] -- Reb
Date: 5/12/04 1:06:19 PM US Mountain Standard Time
From: Becworks To: Walter Burien
 
"This newspaper is published under the First Amendment of the Constitution and protected by the citizens and the Second Amendment"
 
The system is broken ... by Mike Crane
 
The system is broken ...
 
Have you ever taken the time to look at the growth rate in federal spending for the last 40 years or so?
 
If so, then this information will be old hat. But if not, this should be of great interest. By looking at the historical figures for the last forty years, you can see if there is a obvious trend over this time period. If there is then this trend can be projected into the future to give some insight into what will happen if this trend continues.
 
The chart below shows government spending per taxpayer from 1960 until 2002, roughly 40 years. The dollar amounts shown have been adjusted to year 2000 dollars to eliminate any confusion from inflation. There is little doubt that a trend is obvious. The trend is a fairly steady increase in both federal and State & local government spending.
 
Since these statistics are "per taxpayer," population growth has also been factored in.
 
Take a few minutes and look at this chart:
 
 
 
The total tax burden on Americans includes funding for state and local expenditures, and though the trends appear similar, state and local spending combined has grown much faster than federal spending since 1960. Between 1960 and 2002, state and local spending per taxpayer grew by 114 percent, while federal spending per taxpayer grew by 69 percent. As a result, state and local spending increased from 49 percent to 62 percent of the value of federal spending.
 
In 1960 total government expenditures was about $13,000 per tax payer, today it is over $23,000. That is almost double! If your wife works also, that is over $46,000 for your family!
 
Forty years is a long time, especially for those who are younger than 40. But is you youngsters that should be giving these statistics the most thought. You and your children are the ones that this trend will affect the most. So let me suggest an educational exercise:
 
 
 
Make a list of people you know that were raising a family anytime in the 1960's. This would be the people you know that are 50 or older that have families. Should be a reasonable sized list.
 
Go to each of these people and ask them if they believe that they get twice the benefits from government that they got in the 1960's? I am in this category and my answer is "No." But I do get a zillion types of interference that I did not have in the 1960's, none of which I would give you a plugged nickel for!
 
 
 
Remember these dollars are already adjusted for inflation, so my relationship with government is costing me almost double now from when I started raising a family. I have to work longer every year just to pay the government to interfere more in my life.Now assume that you have a grandson born this year. If this trend continues for another 40 years, as he is approaching the age where he is getting close to becoming a grandfather what will the government be doing to you and him? The same trend for another 40 years would produce these figures:
 
Federal spending per tax payer: $24,881 State & local spending per tax payer: $19,461
 
That is over $44,000 (in current day dollars) per tax payer. Tilt! System is broken! This is a virtual recipe for chaos. I hope that you see the fallacy of that level of government spending. It is well above the per capita and family income. You can also project the trend of more government interference in your life. I am glad that I will not be around to see that sad spectacle.If you do not see the fallacy of government spending at these levels then you are wasting your time reading this article. You should be reading about Our Founding Fathers and the principles upon which our country was founded. Government spending at these projected levels will mean the end of American Liberty as espoused by Our Founding Fathers.There are only three ways for the government to finance this trend;
 
1) taxes, 2) deficit (borrowing against future generations) or 3) inflation (devaluation of dollar).
 
None of these benefit your grandson and are even worse for his grandson. All three of these methods have been used by our government (federal, State & local) over the 40 years since 1960. None of the three do you or your grandkids any good.But going back to that $44,000 per tax payer projection. This is a clear indication that the trend can not continue. This begs the question: What is going to change the trend? Looking at the chart you will see that the various combinations of Republican or Democratic control of the levels of government has very little impact on the overall rate of growth of government at any level.Since this article was based on 1960 through 2002 data, any projections forward are off to a bad start. The growth of federal spending in fiscal 2003 is one of the largest, if not the largest, in history. Just the national debt as reflected by Treasury bonds has increased close to $500,000,000,000. Next year is probably going to be worse. And yes, we getting more government interference in our lives for the increase.Its your government folks. You are the only thing that can change the trend. If you plan on having grandkids then perhaps you should give this some thought and consideration.


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