Overall Contents for All Blogs and Posts
http://unclesamenterstheendgamepart1.blogspot.com/
Most posts are alphabetized by subject starting at the bottom of each blog except for the first one. To get a feel of the overall intent of the blogs and posts please read the first post below.
Introduction and an Idea of how to navigate through the blogs and posts.
Contents for Sources of Funding for New World Order
From Soft to Hard Tyranny
Government Officials Speak out on Corruption and/or the New World Order Part 1
Government Officials Speak out on Corruption and/or the New World Order Part 2
Contents for Health Care Trends
Contents for Hidden Powers, Hidden Interests
Introduction
Links to Corruption, Tyranny and Trends Toward A New World Order Part 1
Links to Corruption, Tyranny and Trends Toward A New World Order Part 2
http://unclesamenterstheendgamepart2.blogspot.com/
Published 2014 (1) Immigration
Published 2012 (1)
Internment/Resettlement Operations FM 3-39.40
Published 2011 (2)
Links to Corruption, Tyranny and Trends Toward A New World Order Part 3
National Debt
The above 3 posts Links to Corruption, Tyranny and Trends Toward a New World Order, Part 1, 2 and 3 contain just the links from all the posts with very little political commentary or analysis.
http://unclesamenterstheendgamepart3.blogspot.com/
News About the Fed, Banking and Finance Part 1
News About the Fed, Banking and Finance Part 2
Quotes Over Time About Monetary Policy and Banking and Finance in Relationship to Liberty and Tyranny
Slow Response/Gulf Oil Spill
Social Security and Other Entitlements
Solutions
Symbols of Occult Power
The Modern Art and Science of Enslaving Others
The Constitution Verses Tyranny
The Relationship Between The Military Industrial Media Complex, Defense Spending, Semi-permanent and Permanent War and the Rise of Tyranny
http://unclesamenterstheendgamepart4.blogspot.com/
Trends Toward a Tyrannical New World Order Part 1
Trends Toward a Tyrannical New World Order Part 2
Trends Toward a Tyrannical New World Order Part 3
The United Nations in Relationship to the New World Order Part 1
The United Nations in Relationship to the New World Order Part 2
http://unclesamenterstheendgamepart5.blogspot.com/
Barter and Local Currency Survey
Members, Activities and Meeting Times
http://unclesamenterstheendgamepart6.blogspot.com/
The War on Food
The War on Food Part 2 This section has a lot more in depth scientific studies.
In all the blogs the titles for each of the articles are colored coded red, orange, green or black based on my subjective belief of how likely they are to be true.
Red title and bold font means I believe the article is very likely to be true and is very important!
Red title and regular font means I believe the article is very likely to be true but is less important.
Orange title and bold font means the article is likely to be true and is important!
Orange title and regular font means the article is likely to be true but is less important.
Green title and bold font means I believe the article could be true and is very important!
Green title and regular font means I believe the article could be true but is less important.
Black title and bold font means I have no opinion on the article because I have not researched it so I have no opinion on its veracity. However it is important!
Black title and regular font means I have no opinion on the article because I have not researched it so I have no opinion on its veracity or truthfulness. It is of lesser importance.
Contents For National Debt
Our Leaders Bow Before Foreign Leaders 3
“Stop Interfering in our Domestic Affairs”: Chinese Fury at Obama’s Private Meeting With the Dalai Lama Illustrate Our Lack of Sovereignty 5
The Chinese Professor and The Best Xmas Gift/info 7
National Debt Increase Over Time From U.S Treasury Department Not Including the Huge
Debt From Unfunded Entitlements 8
See Social Security and Entitlement File for more on unfunded government mandates
The National Debt as a Percent of Gross National Product 10
The Exponential Function By Doctor Bartlett 11
The Exponential Function as it Relates to Finances, Banking, Debt and Tyranny 15
To really understand how banks raise money for themselves and investors who own them go to the File News about the Fed on page 4, and 6 called Assessing Impact of New Global Bank Rule and the Next article about money creation by the banks
National Debt Much More than Predicted May 12, 2010 18
Long Unemployment Benefits Hurting State Budgets Causing Rising Payroll Taxes Which May Hurt Long Term Economic Growth 18
80 Billion Spent for Intelligence Last Year 2009 19
Page 2
Total Cost Iraq Afghan War Staggering Costs of 2 Wars Can Only Be Guessed AT Nancy A Youssef/McClatchy Newspapers 19
U.S. Troops Support Drug Trade/Afghanistan 20
Interest Paid on National Debt Verses Budget Cuts 20
42 Cents of Every Dollar Government Spends Is Borrowed 20
Former Secretary of the Treasury/Paul O'neil Proclaims if You Oppose Raising Debt Ceiling then You Are
Al Qaeda 20
Secretary of the Treasury Timothy Geithner said Budget Proposed by Obama Leads to Unsustainable Obligations over Time 21
GAO Projections Present Course on Budget Unsustainable 21
Gary Johnson Former Governor of New Mexico Debt Is Ponzi Scheme 21
CBO Director Warns Trillion Dollar Deficits Risk Economic Meltdown 21
Obama Budget Plan Shows Interest Owed on National Debt Quadrupling in Next Decade 22
Debt Slaves On Uncle Sam’s
Plantation 23
Other Debt Articles 23
USA Today Breaks Down Sources of Debt Cost per Household 23
Total Federal Government Revenue Collected in 2010 23
U.S. Federal Government Size (as Measured by Spending) by Presidential / Political Party / Excellent Graph 23
Will the Budget Compromise of 2013 Work or is it a Scam? Some Troubling Government Data 35
Will the Budget Compromise of 2013 Work or is it a Scam? Some Troubling Government Data 35
Page 3
The Risks of Growing Entitlement Spending! 24
Without Major Changes, U.S. Headed Toward Bankruptcy 24
Personal Debt Interesting Statistics 25
Personal Debt Interesting Statistics 25
Brainwashed and/or My Devilish Impulse What the Politicians and the Media Are Not Telling Us About the Debt 26
Some Easy to Understand Debt Related Graphs 28
The Economic Colonization of the United States by Communist China Is Related to our Debt to Communist China! 29
Interesting Links Related to Personal Debt/2011 34
Some Easy to Understand Debt Related Graphs 28
The Economic Colonization of the United States by Communist China Is Related to our Debt to Communist China! 29
Interesting Links Related to Personal Debt/2011 34
The lender is the master of the borrower while the borrower is the servant of the lender. Sometime in 1985 the U.S. became a debtor nation and has become more indebted over time. Americans pride themselves as being independent and free while allowing others to do the same. Debtors loose their power, freedom and independence and the same is true for debtor nations. The following videos may show that our leaders may understand our new position as an enslaved nation. Will the people of our nation accept this new reality or will they act to change our present status?
The article on pages 29-34 is related to these articles on pages 3-8
The article on pages 29-34 is related to these articles on pages 3-8
Our Leaders Bow Before Foreign Leaders
Bush Bows Before Saudi King This bow could be masked by the fact that the King placed a metal around his neck so Bush may have bowed to make it easier for the King to place the metal around his neck. http://imagesource.cnn.com/imagesource/player.swf?streamer=rtmp://isfms.cnn.com/vod&file=mp4:895/05281895&type=video&controlbar=none&autostart=true&width=480&height=324
The Tale of Two Bows Notice how Obama bows differently to the Queen of England as opposed to the King of Saudi Arabia. Perhaps the reason for this is Saudi Arabia owns more of our debt. http://www.youtube.com/watch?v=4gJtIss7xso
Obama Bowing to Premier Hu During the Welcoming Ceremony for Hu’s January 19, 2011 visit to the White House. Here is a link to the complete welcoming ceremony lasting about 31 minutes. Note President Obama seems to bow to Premier Hu two or three times as Premier Hu exits the car. He seems to bow again one time while both men were giving the welcoming presentation. On this link from the White House are other videos of events that occurred during this visit that might be of interest.
The next links notes how President Obama bows to Premier Hu but Premier Hu does not bow back. In Chinese culture the one who bows is considered inferior. During the welcoming ceremony one of President Obama’s daughters was waving a Chinese flag in her hand as the Premier approached her. In many Asian cultures including China’s when one loses in a battle and wants to show that they submit to the victor’s rule, they wave the victor’s flag in their hand or the enemy’s flag over their head to show the victor their submission. Also during the State Dinner many performers played for the leaders. One of them was a famous Chinese piano player. He 1st played an American piece, then played a piece known by all Chinese who lived during the time of the Korean conflict. It praises the heroic Chinese soldiers and their Korean allies and vilifies the American soldiers. Many Chinese were shocked because they consider the song an insult to the Americans and the Chinese who live in the U.S. would not play the song because they would consider it disrespectful. I would love to talk to Chinese students about this link.
Obama Bowing to Premier Hu in China
Obama Bows to Hu at Nuclear Summit. This one is only 8 seconds long but interesting comments underneath. http://www.youtube.com/watch?v=2bNoe0RTQYA
President Obama’s Bow to Japanese Leader has Critics Bent out of Shape
The following link claims that various presidents have bowed to foreign leaders or done other actions that Americans would construe as being subservient. However, the State Department has various protocols that officials are briefed on to do when meeting foreign leaders in their own countries which often include actions like bowing or kissing the leaders hand etc. Not to do so would be considered rude or arrogant by the foreign leaders or their citizens so American diplomats often also observe these protocols. The actions of our leaders and diplomats seem to follow the ancient proverb of “When in Rome, do as the Romans do.” http://www.cleveland.com/nation/index.ssf/2009/11/president_obamas_bow_to_japane.html
If you look at the second bowing link above, it show’s President Obama performing several short bows to Premier Hu as soon as Hu exits his limousine. Premier Hu did not reciprocate, instead he stood erect and tall while President Obama performed his short bows. When in Rome do as the Romans do, does not seem to apply to the relationship between the two leaders in the United States. If the Chinese leader considered President Obama an equal, then when Obama bowed, Premier Hu would have bowed toward him in return. Martial Arts came from Asia. The few times that I studied martial arts I was taught before practice, or a match, to always bow to my opponent or partner. In return my partner or opponent would bow to me. By doing this we showed each other that we respected each other and it can also be construed as we consider each other as equals. I would be shocked if the Chinese Premier did not understand the ramifications of his and President Obama’s body language.
Page 5
Had Premier Hu bowed back to Obama then he would have followed the protocols of our country where in theory all men are equals under our laws and Constitution. He did not so with those actions that occurred for a few seconds after he met President Obama in my opinion showed the Chinese Premier as dominant over our President. Hence China is now dominant over the United States. This is in alignment with one of the oldest laws of economics that has been strictly enforced since ancient times. The lender is the master of the borrower.
Another Powerful Symbolic Event Showing the U.S. is no Longer Free or Sovereign!
“Stop Interfering in our Domestic Affairs”: Chinese Fury at Obama’s Private Meeting With the Dalai Lama!
This meeting between President Obama and the Dalai Lama was both highly ironic and symbolic of our nation’s continuing loss of power and freedom as we march further into debt.
One major reason Obama is president is because he stands on the shoulders of Martin Luther King Jr., his supporters and all those who fought for Black equality and freedom from the time the first slave set foot in our nation. It is notable that great strides were made toward these goals with the nonviolent actions of King and his supporters.
Starting in 1950 the Chinese invaded Tibet but allowed the Tibetan government to remain fairly autonomous until 1959. At that time they began to
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exert more control and rebellions broke out. From 1959 through 1961 fighting and resistance occurred and most of the monasteries were destroyed and the Dalai Lama fled to India. Some sources claim that the CIA funneled money and weapons into the region but the majority of the population would not join the resistance so it collapsed. Some sources in Wikipedia claim that the Dalia Lama’s brother was involved with the CIA and the resistance and claim the Dalai Lama admitted that the CIA funded the early resistance. I have no idea how involved he was with the violent resistance.
By the time I encountered the Dalai Lama in the 1980ties, he commanded that his followers resist the Chinese nonviolently so until recently I had no idea that he may have engaged in violent resistance at one time. This nonviolent resistance has continued for many decades so by the 1980ties the Tibetan and American Buddhists I worked with claimed that 1/3 of the Tibetan population had been exterminated in the resistance!
Although the Dalai Lama may have engaged in or allowed violence to occur in the early years of the resistance against the Chinese, for many years the vast majority of his followers practiced nonviolence under far harsher conditions than the followers of Martin Luther King Jr. experienced!
It was George Bush Senior according to the link below that started the meetings with the Dalai Lama and Presidents have met with him every year since that time. None of the presidents ever met him in the Oval Office for that room is reserved for heads of state and the Dalai Lama is not recognized as the head of any state. Because of Chinese government’s antipathy toward the Dalai Lama, all presidents had to be careful about how they met with him and all meeting were low key affairs.
Like his predecessors, President Obama met with the Dalai Lama on February 10, 2010 in the Map Room where previous Presidents also met with him. Perhaps because of strenuous Chinese objections very little fanfare or public announcements were made concerning his meeting. At the conclusion of the meeting Dalai Lama exited through a back door where the White House kept the garbage. For a great Black man standing on the shoulders of MLK Jr., it is ironic that this fellow disciple of the nonviolent way would be treated in such a way. Yet when you realize that the Chinese own a third of our debt, it makes sense that they exert great power over our foreign policy!
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Continuing the tradition of the yearly meetings, President Obama met with the Dalai Lama in the Map Room again on January 19, 2011 with less controversy. Perhaps Dalai Lama was treated better this time. The link below goes into greater detail about the 2010 meeting containing lots of pictures including the picture of him exiting the White House by the garbage! http://www.dailymail.co.uk/news/article-1251888/Dalai-Lama-meet-Barack-Obama-U-S-defies-protests-China.html
Here is Our Future if Present Trend Continue. Let me introduce: The Chinese Professor http://www.silverbearcafe.com/private/10.10/chinese.html
Information the Best Xmas Gift/Merry Christmas www.stansberryresearch.com/pro/1011PSIENDVD/LPSILC49/PR
About half the information I know to be true. I know horrific things will occur when U.S. economy collapses. The question is when? I remember some of my communalistic friends in 1980 predicting imminent collapse. Perhaps Uncle still has some tricks to stave off the inevitable.
I didn’t realize the following. The cost of oil and gas in U.S. is far cheaper than anywhere else in the world. Why? Oil is bought and sold in dollars because the dollar is the reserve currency of the world used by oil producing companies to pay for oil. Any other nation has to trade their own currency for dollars then buy oil. This trading tends to reduce value of currency. When U.S. buys oil our currency value is not reduced because we simply create more dollars. The major powers and oil producing nations are looking to dump the dollar as the reserve currency because of our irresponsible financial policies.
Unfortunately we create dollars to pay off old debt but still increase debt. Eventually the crash will come through hyper-inflation or deflation or both. Communist China the main holder of our debt isn’t waiting. They and other nations holding our debt are dumping our dollars. That is why my Uncle Sam
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in his deluded state is eyeing my retirement account to cover are debt. A move is underfoot to dethrone the dollar for understandable reasons.
One of the first things we will notice if this occurs is huge jumps in energy prices which will increase all prices. I hope you use your gift wisely.
Data From the Treasury Department Showing Part of Our National Debt Over Time Unfunded Liabilities Are Not Included.
Data taken Directly from the Treasury Department. Google Debt to the Penny (Daily History Search Application) or go to the link http://www.treasurydirect.gov/NP/BPDLogin?application=np
I performed the necessary math operations to determine yearly percentage growth.
Date
|
Total National Debt
|
Percent
Increase
From
Previous Year
| |
9/30/1993
|
4,411,488,883,139.38
|
Non Apllicable
| |
9/30/1994
|
4,692,749,910,013.32
|
6%
| |
9/29/1995
|
4,973,982,900,709.39
|
6%
| |
9/30/1996
|
5,224,810,939,135.73
|
5%
| |
9/30/1997
|
5,413,146,011,397.34
|
4%
| |
9/30/1998
|
5,526,193,008,897.62
|
2%
| |
9/30/1999
|
5,656,270,901,633.43
|
2%
| |
9/30/2000
|
5,674,178,209,886.86
|
3 hundredths %
| |
9/30/2001
|
5,807,463,412,200.06
|
2%
| |
9/30/2002
|
6,228,235,965,597.16
|
7%
| |
9/30/2003
|
6,783,231,062,743.62
|
9%
| |
9/30/2004
|
7,379,052,696,330.32
|
9%
| |
9/30/2005
|
7,932,709,661,723.50
|
8%
| |
9/30/2006
|
8,506,973,899,215.23
|
7%
| |
9/28/2007
|
9,007,653,372,262.48
|
6%
| |
9/30/2008
|
10,024,724,896,912.49
|
9%
| |
9/30/2009
|
11,909,829,003,511.75
|
8%
| |
9/30/2010
|
13,561,623,030,891.79
|
9%
|
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The average growth of the national debt over the 17 year period between 1993 to 2010 is about 6 percent per year. If you google Dr. Bartlett’s Exponential Growth video, The Most Important Video You Will Ever See, you will discover scary facts concerning growth rates and doubling times. You can determine the doubling time of any quantity based on rate of growth using the following equation with the following terms. DT = the doubling time. GR = % of growth during a given quantity of time. In the above case the quantity of time equals one year. Here is the equation. DT = 70/GR. It is a simple equation. In 2006, the growth rate of the national debt was 7% per year. If that growth rate remained stable over a long period of time the equation would look like this. DT = 70/7. The doubling time ultimately equals 10 or 10 years. So DT or doubling time of the National Debt would occur in only 10 years. In 2006, the debt was approximately 8.5 trillion dollars. If the debt growth consistently grew at 7% a year then by 2016 it would equal 17 trillion dollars. Since 2003 the growth rate of the debt is roughly 9% a year. 70 divided by 9 = 7.7 so if debt continues to grow at 9% about every 7.7 years debt would double.
On a website called zfacts.com another interesting table shows debt over time since 1940 as a percent of Gross Domestic Product. (GDP) It reached a peak of over 120% of GDP under Truman. I assume a lot of money was borrowed under Hoover and Franklin Roosevelt to help alleviate the impact of the Great Depression and to pay for World War II. Perhaps the growth of the economy helped pay down the debt so by the end of the Carter administration it reached it’s lowest point in this time frame. I remember during the Reagan years when Congress was controlled by the Democrats, the Congress did not go for Reagan’s large defense spending bills and they refused to cut some of the social programs he wanted cut so the Fed created money for the government to borrow increasing the debt. Under Clinton the economy boomed with the dot com revolution and for the first time in years the Federal Government supposedly ran surpluses rather then deficits. According to Senator Hollings however, we never actually ran government surpluses because the government raided the 110 billion dollar a year social security surpluses to pay for other government programs. Note during
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that time the National Debt as a % of GDP also went down somewhat. Under Bush II the debt increase dramatically then it started skyrocketing during the first year of the Obama administration. It seems to be the Fed’s job in my opinion to manage this debt so we can be taken advantage of but not crushed by debt.
This second table is more accurate in that our debts balloon over time because of inflation but this table shows debt as % of GDP so it helps factor in inflation and growth over time. I checked some other websites comparing debtor nations and right now Japan has a 200% rate of debt to GDP which is much higher than the U.S. Several nations are still higher than us. However since we have the largest economy around the world, it would probably be a lot worse if we take the lead in this regard!
The National Debt as a Percent of
Gross National Product
January 19, 2001. The debt the day before the Bush Administration took office. January 20, 2009. The debt on the first day of the Obama administration. June 6, 2009 shows the most current national debt. The above data is collected from www.treasurydirect.gov/NP/NPGateway. It has the current debt to the penny and you can also select any previous date and find the debt on that date.
The approximate debt per person in the United states as of this date is 37,206.38. The debt is increasing by approximately 3.87 billion dollars per day IF you google National Debt Clock, the above data is collected from that source. You will have to go to the link above or google The National Debt as a Percent of Gross National Product to see a similar graph.
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Jeff Jacoby
Exponential Growth Notes from Dr. Bartlet’s video, The Most Important Video You will ever See
To truly understand how money works and the dangers of the debt you need to watch this video. The next article I discuss how this video relates to banking. Below is a synopsis of the first video.
This video helps people grasp the concept of exponential growth over time at different rates of growth. He also provides an equation so if you know the rate of growth during a fixed period of time you can calculate the doubling time or the time it would take the quantity to double T2 = 70/%growth over unit time. So if the quantity has a growth rate of 5% then T2 or the doubling time = 70/5. Thus if a quantity is growing 5% a year then it would take 14 years for that quantity to double in size. A 10% growth rate would take half the time to double or 7 years.
Let’s look at a 7% rate of growth per year. This means doubling every 10 years. The Rocky Mountain News once had a headline, Colorado Kid Crime Doubles in a Decade. If the crime rate doubled at a steady rate over the 10 years the rate of increase would be 7% a year. He gave another example of 7% growth using the cost of an all day ticket to ski at Vail. In 1963 a ticket was $5, in 1973 it was $10, in 1983 it was $20, in 1993 it was $40. In 2003 it was $80. In 2013 it will be $160. By 2023 the cost will skyrocket to $320 based on a constant yearly rate of growth of 7%
Lets look at another graph that shows doubling size. After the first doubling the quantity is twice the size, then in the next doubling, 4 times the size. If we put the doubling on a number line the pattern would look like this for each doubling up to 20 doublings. 1, 2, 4, 8, 16, 32, 64, 128, 256, 512, 1024, 2048. 4,096, 8,192, 16,384, 32,768, 65,556, 131,072, 262,144, 524,288. 1,048,576. So if you had a bacteria that doubled every minute starting at 1 after 20 or 21 minutes you would have 1,048,576 bacteria then the next minute it would double to 2,097,152. After 10 doublings the quantity has increased a thousand fold. After 20 doublings the quantity has increased a million fold. After the 21st doubling it has increased 2 million fold! Legend has it that the game of chess was invented by a mathematician who worked for a king. The king was pleased so he wanted to reward the mathematician. The mathematician said “My needs are modest. On the first square of the chess board put 1 grain of wheat, on the next square double it and put 2, on the next square double it and put 4 and continue in this way for all 64 squares are covered.” On the fourth square he has 8 grains which
is the same as multiplying 2 three times. Since you do not multiply 2 on the first
is the same as multiplying 2 three times. Since you do not multiply 2 on the first
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square you actually multiply 2 by itself 64 times minus 1 because there is only 1 not 2 grains on the first square. According to the professor the amount of wheat the King would have had to give the brilliant mathematician would be roughly 14 times the world’s wheat harvest in 1990!
The average life span for humans is roughly 70 years. Lets look at how often a quantity doubles given various rates of growth as well as how much larger a quantity will be after 70 years given various rates of growth.
Rough Human Life Span of 70 years
Percent Growth
In a Year
|
Doubling Factor
|
Quantity Size
After 70 Years
|
1%
|
2=2
|
Double in Size
|
2%
|
2x2
|
4 times bigger
|
3%
|
2x2x2
|
8 times bigger
|
4%
|
2x2x2x2
|
16 times bigger
|
5%
|
2x2x2x2x2
|
32 times bigger
|
6%
|
2x2x2x2x2x2
|
64 times bigger
|
7%
|
2x2x2x2x2x2x2
|
128 times bigger
|
10%
|
2x2x2x2x2x2x2x2x2x2
|
1024 times bigger
|
If you have a city that is growing 1% a year for 70 years, if it starts with a population of 1 million, in 70 years the population would increase to 2 million. The same city with 2% growth would double every 35 years. After 35 years it’s population would double to 2 million and in another 35 years double to 4 million. The 2x2 represents 2 doublings 1 to 2 million then 2 to 4 million. 3% growth for the same city would result in a population of 8 million after 70 years because when you divide 3 into 70 you have a doubling roughly every 23 years so the actual population will be somewhat higher than 8 million. A 5% growth rate which seems reasonable to most people would result in a doubling in the population every 14 years because 70 divided by 5% =14. This results in 1 million doubled 5 times or 2x2x2x2x2 or 32 million. Thus the original 1 million after 70 years is 32 times bigger than the original population. Higher percents of steady growth result in incredible increases of quantity in 70 years.
Now suppose you have bacteria that double in population every minute. Suppose you place a few bacteria in a bottle at 11:00AM and by 12:00 noon the bottle is full. What time would the bottle be half full? The bottle would be half full at 11:59. At what time would the average bacterium realize that he or she is running out of space? Look at the table below to record the last few minutes before the bottle became full.
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Bacteria in the Bottle
The Last 5 minutes
Time
|
How full is the Bottle?
|
How empty is the Bottle?
|
11:54 AM
|
1/64 = 1.6% full
|
63/64 = 98.4% empty
|
11:55 AM
|
1/32 = 3.1% full
|
31/32 = 96.9% empty
|
11:56 AM
|
1/16 = 6.3% full
|
15/16 = 93.7% empty
|
11:57AM
|
1/8 = 12.5% full
|
7/8 = 87.5% empty
|
11:58 AM
|
¼ = 25% full
|
¾ = 75% empty
|
11:59 AM
|
½ = 50% full
|
½ = 50% empty
|
12:00 Noon
|
100% full
|
Suppose at 11:58 some of the bacteria realize that they will be running out of space so they search for new bottles. Suddenly they discover 3 new bottles which is a colossal discovery of three times more resources than they ever had before. How long can the bacteria survive before the resources run out? Let’s look at the doubling times below.
Bacteria Discover 3 New Bottles to Colonize
Time
|
Number of Bottles Full?
|
Number of Bottles Empty
|
12:00 Noon
|
1 bottle full
|
3 bottles empty
|
12:01 PM
|
2 bottles Full
|
2 bottles empty
|
12:02 PM
|
4 bottles full
|
No empty bottles
|
With the doubling time the bacteria would only last 2 more minutes with the discovery of 3 times of the resources that they had before. So even when at 12:00 they discovered 3 times the amount of natural resources they ever used previously in their past, because of their doublings they only took 2 minutes to use up all the newly discovered resources.
Now when officials state that we can grow at high rates or we will continue to discover fossil fuels at high rates perhaps we should question their analysis. For most of the 20th century the consumption of oil grew at 7% which averages out to a doubling time of about once every ten years. Remember every time the use of a resource doubles the amount of resource needed for the next doubling is more than all the resource discovered and utilized up to that point. To consider that graphically let’s consider the story about the mathematician and his request to place one grain of wheat on the first square, 2 grains of wheat on the second square, 4 grains of wheat on the third square and so on until the 64th square was filled. Look at the table below and note the pattern.
Doubling of Grains on the Chess Board
Square # on
the chess board
|
# of grains on
each square
|
# of grains on
previous squares
added together
|
# of grains on
the next
doubling
|
1
|
1
|
1
|
2
|
2
|
2
|
3 Grains on squares
1 and 2 are added
|
4
|
3
|
4
|
7 Grains on squares
1,2 and 3 are added
|
8
|
4
|
8
|
15
|
16
|
5
|
16
|
31
|
32
|
6
|
32
|
63
|
64
|
7
|
64
|
127
|
128
|
This table shows that in order to go from 1 doubling to the next, you must use more resources in the future than the total resources you have used in the past. So once you get to square 3 on the chess board you have used 7 grains of wheat which is less than the 8 grains on square.
How might this relate to energy policy say consumption of fossil fuels? According to the Professor, Dr. M. King Hubbert showed that from about 1870 to 1970 the rate of growth in the consumption of crude oil was roughly 7% a year. According to the equation T2 = 70/% of growth where T2 is the doubling time T2 =70/7. This means the consumption of oil doubled every 10 years which means that there were 10 doublings in that 100 year span. If I represented that doubling on a number line it would look like this: 1, 2, 4, 8, 16, 32, 64, 128, 256, 512. According to Dr. Bartlett if that 7% growth rate could have been maintained through the end of the century the known world’s reserves would have been depleted by now. Growth rates of consumption slowed down and Opec raised their prices so some oil reserves remain but they are diminishing.
It is interesting that many do not understand the exponential function. According to Dr. Bartlett, the following exchange occurred between an interviewer and an oil wildcatter named Michel Halbouty written in the Time magazine on October 29, 1990.
How to Break the Middle Eastern Oil Habit?
Texas wildcatter Michel Halbouty says the U.S. must drill more domestic oil and form worldwide pacts to eliminate the need for Arabian petroleum.
Q. But haven’t many of our bigger fields been drilled nearly dry?
R. There is still as much oil to be found in the U.S. as has ever been produced.
Now if you don’t understand how the exponential function works you would think there is tons of the stuff. Yet if you think of the bacteria analogy that statement would be true at 11:30 in the time frame as well as at 11:59 when the bottle is almost half full because even when only a minute is left the bacteria still have more resources left to exploit than all the resources they have exploited in the past.
Another statement showing the same fallacy of reasoning came from the American Electric Company. “We’re sitting on half the world’s supply of coal. Enough for over 500 years.” This number may have come from a report to the U.S. Senate. They made a statement, “At current levels of output and recovery these… reserves can be expected to last over 500 years.” This is a dangerous true statement because people take the sentence apart and decide we have coal for
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500 years. They take out the most important caveat, At current levels of output and recovery. If we have 0 growth rate of consumption of coal perhaps it would last 500 years.
According to a 1991 article by the energy department about half of that amount is recoverable amounting to 2.4 x 1011 tons. Thus perhaps it would not last that long. According to his figures the average growth in coal production between 1971 and 1991 was 2.85%. If we continue that steady rate of growth, than the recoverable coal would be used in 72 years. If we figured out how to extract the rest of the coal then it would last 94 years. Higher rates of growth would deplete it faster while slower rates of growth would increase the time.
Exponential Growth Notes from Dr. Bartlett’s Video and How it Relates to Banking, Finances and Tyranny
This video helps people grasp the concept of exponential growth over time at different rates of growth. I would like to review some of his findings then show how the banking system has utilized the exponential growth principal to become the most powerful force on earth!
Dr. Bartlett provides a simple equation so if you know the rate of growth during a fixed period of time you can calculate the doubling time or the time it would take the quantity to double T2 = 70/ percent growth rate given a unit of time. So if the quantity has a growth rate of 5% then T2 or the doubling time = 70/5. Thus if a quantity is growing 5% a year then it would take 14 years for that quantity to double in size. A 10% growth rate would take half the time to double or 7 years. Let’s look at a 7% rate of growth per year. This means doubling every 10 years. The Rocky Mountain News once had a headline, Colorado Kid Crime Doubles in a Decade. If the crime rate doubled at a steady rate over the 10 years the rate of increase would be 7% a year. He gave another example of 7% growth using the cost of an all day ticket to ski at Vail. In 1963 a ticket was $5, in 1973 it was $10, in 1983 it was $20, in 1993 it was $40. In 2003 it was $80. In 2013 it will be $160. By 2023 the cost will skyrocket to $320 based on a constant yearly rate of growth of 7%
Lets look at another graph that shows doubling size. After the first doubling the quantity is twice the size, then in the next doubling, 4 times the size. If we put the doubling on a number line the pattern would look like this for each doubling up to 20 doublings: 1, 2, 4, 8, 16, 32, 64, 128, 256, 512, 1024, 2048, 4,096, 8,192, 16,384, 32,768, 65,556, 131,072, 262,144, 524,288. and 1,048,576. Therefore, if you had a bacteria that doubled every minute starting at 1 after 20 or 21 minutes you would have 1,048,576 bacteria then the next minute it would double to 2,097,152. After 10 doublings the quantity has increased a thousand fold. After 20 doublings the quantity has increased a million fold. After the 21st doubling it has increased 2 million fold! Legend has it that the game of chess
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was invented by a mathematician who worked for a king. The king was pleased so he wanted to reward the mathematician. The mathematician said “My needs are modest. On the first square of the chess board put 1 grain of wheat, on the next square double it and put 2, on the next square double it and put 4 and continue in this way for all 64 squares are covered.” On the fourth square he has 8 grains which is the same as multiplying 2 three times. Since you do not multiply 2 on the first square you actually multiply 2 by itself 64 times minus 1 because there is only 1 not 2 grains on the first square. According to the professor the amount of wheat the King would have had to give the brilliant mathematician would be roughly 14 times the world’s wheat harvest in 1990!
Let’s see how this relates to banking and why the Federal Reserve and other central banks are so powerful. First realize these banks along with their commercial banking counterparts can create money almost out of thin air then they charge interest on this money that is virtually risk free. In addition compounding interest works the same way as the exponential principal. The Federal Reserve was created in 1913 and is almost 98 years old. To simplify matters a bit let’s assume the Federal Reserve at its inception created only 1,000, 000 dollars from thin air, did not create anymore money (other than the money needed so borrowers could pay interests on their debts), and lent it to the commercial banks charging short term interest rates of 5%. If you average all the different short term interest rates charged to banks over time, 5% might be close to the average. If you want to find the doubling time for your money at that interest the doubling time equals 70/5. Solving that equation you would get 14 years for the doubling time. If you loaned a thousand dollars at 5% interest in 14 years with interest payments, you would have $2000 dollars. If you took the $2,000 dollars and loaned that out at the same interest rate then in another 14 years you would have $4,000.
Since the Federal Reserve is almost 98 years old and assuming it charges 5% interests on its short term loans to commercial banks it could double its money every 14 years. Therefore divide 98 by 14 to get seven times. So if the Federal Reserve created 1,000,000 dollars at it inception and only created money to cover interest payments then its money would double 7 times over that 98 year period. If after 14 years the first doubling gave 2 million, lets look at how that pattern would look on a number line if you drop the six zeros in a million and start at 2. It would look like this: 2, 4, 8, 16, 32, 64, and 128. Today charging 5% interests for short term interest rates, the Federal Reserve would have 128 million dollars. Understand however, the Federal Reserve prints a lot more new money than is needed to cover interests on their loans so large amounts of revenue is created for their secret investors
Remarkably the Bank of England practiced this style of banking already for almost 2 centuries before the inception of the Federal Reserve so some English bankers were incredibly wealthy. The Bank of England initiated this kind of
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money creation and lending practices in 1694, 316 years ago. Using the same interest rates let’s see what would happen to a million dollars or pounds created in 1694, if no other money was created other than what is needed so borrowers can pay interests on their debt. At 5% interest it would double every 14 years, so to find the number of doublings that have occurred since 1694 one divides 14 into 316 which is the age of the Bank of England giving us 28 doublings of the original 1 million dollars. The first doubling started at 2 million so removing the six zeros we start at 2. Here are the next 27 doublings: 4, 8, 16, 32, 64, 128, 256, 512, 1024, 2048, 4,096, 8,192, 16,384, 32,768, 65,556, 131,072, 262,144, 524,288. 1,048,576, 2,097,152, 4,194,310, 8,388,620, 16,777,240, 33,554,480, 67,108,960, 134,217,920 and the 28th doubling would be 268, 435,840. Now since I started with 1 million I will add the six zeros back to the last number so it would be something like 268,435,840,000,000. However, the money making process is more fantastic than that because over the centuries the Bank of England often added money to the system beyond the money created so borrowers could pay off the interest on their debt, so the secret investors of the bank became wealthy beyond any of our dreams.
In such a debt interest system new money must constantly be created in order to provide borrowers money to pay interest on their previous debt. This is a bit hard to understand but if I can simplify it a bit perhaps you can perceive the concept. Pretend a new country was created with 1 bank and 10 people. Each of these people wanted to buy a used car for $10,000 each. Up to this point there was no money in the country. Therefore the bank created $10,000 dollars for each of the 10 people on January 1, so from thin air the bank created a $10,000 check for each borrower after each promised to pay the money back in one year plus 10% interest on the loan. These 10 people then took their $ 10,000 checks to the car dealers and got their used cars. Now there was 100,000 dollars created in the economy. Now pretend it is January 1st of the following year. It is time to pay off the $10,000 loan plus the 10% interest that is an additional $1,000 dollars. Let’s pretend that somehow the borrowers recovered the $100,000 dollars that the bank lent them but they each owe $1000 each This $1,000 per person can’t be paid off unless the bank creates $10,000 more dollars. Banks must create more money but in the process they create an inflation rate of 10% and the purchasing power of each dollar goes down by 10%. This is why in debt based systems there is always inflation, hidden taxation without representation, and the value of currency goes down over time.
Yet, this debt system creates vast wealth for secret investors of the banks. I believe they utilize this money to corrupt government officials to create laws to their liking as well as to continue to amass wealth into fewer and fewer hands creating conditions conducive to tyranny! To see Dr. Bartlett’s video click on http://dandelionsalad.wordpress.com/2007/12/23/the-most-important-video-youll-ever-see-videos-parts-1-4/ If the link does not work google, The Most Important Video You will ever See.
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To see more detailed information of how banks generate massive amounts of debt and money for themselves see the File News About the Fed, Then go to the article Banking History and Operations for Idiots starting on page 3. Also look at the article in the same file called Assessing the Impact of the New Global Bank Rule starting on page 24.
National Debt much more than predicted 5/12/10
Reuters) - The United States posted an $82.69 billion deficit in April, nearly four times the $20.91 billion shortfall registered in April 2009 and the largest on record for that month, the Treasury Department said on Wednesday.
It was more than twice the $40-billion deficit that Wall Street economists surveyed by Reuters had forecast and was striking since April marks the filing deadline for individual income taxes that are the main source of government revenue.
States Raise Payroll Taxes to Repay Loans Saturday 11/20/2010 Politics and Policy Wall Street Journal Some Key Concepts
· “State governments are borrowing heavily from the federal government to keep paying unemployment insurance benefits and even with the weak job market, most states are raising payroll taxes to pay off loans.”
· 31 states their unemployment insurance fund empty are borrowing 41 billion dollars from the federal government.
· As states are trying to replenish these funds and pay off their loans employers are facing increasing state and federal payroll taxes that might hamper future economic recovery.
· 41 states increased unemployment insurance payroll taxes this year an average of 33.9%.
· The unemployment insurance benefits program was created during the depression so that states would build up a reserve during economic good times and draw down the reserves in economically troubled times such as now. Unfortunately this recession has been much longer than most and many states did not build up large enough reserves to cope with sustained unemployment of 10% or more during such a long period.
· Arizona, which owes the Feds $172.8 million as of November this year, has increased payroll taxes over 50%. Other states face similar dilemmas of how much can we raise taxes to pay off these loans without killing the economic recovery?
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80 billion dollars spent on Intelligence last year.
According to the article Intelligence spending went way up after the 9/11 tragedy. One needs to ask oneself, Are we winning the war on terrorism or are the terrorists winning against us? If you google U.S. Spends 80 Billion on intelligence you will be taken to a slew of websites. Here is one: www.msnbc.msn.com/id/39898511/ So here is where we are at from a layman’s perspective.
· Total financial costs of the Iraq and Afghanistan Wars is over 1 trillion dollars. These wars were supposedly initiated because of 9/11. The following website gives a running tab of the actual cost. http://costofwar.com/ It claims we have spent l.1 trillion already.
· Western nations are trapped. Between the U.S., Japan, Europe, China and India billions upon billions are being spent to buy Middle Eastern oil. Do you think they are going to run out of money any time soon? Where do you think that the terrorists that plot against us get their money? Who do you think has more money, them or us?
· Think of all the money we spend on Homeland Security and TSA agents to body scan us or feel us up. Are we, or can we win the war on terrorism the way we are fighting it now? It seems like our national immune system which is suppose to root out the terrorists is slowly turning against us the American citizens.
Staggering Costs of 2 Wars Can Only Be Guessed AT Nancy A Youssef/McClatchy Newspapers http://www.stripes.com/news/middle-east/true-cost-of-wars-in-afghanistan-iraq-is-anyone-s-guess-1.152268 This caught my eye in my local paper. If you click on images, she has some incredible graphs. Here’s some figures that help you understand the magnitude at a personal level. In Afghanistan in 2005 the average cost of the war annually per serviceman was $483,000. By 2011 the annual average cost of the war in Afghanistan was $694,000 per service man. In Iraq in 2005 the average annual cost of the war per serviceman was $352,000. In 2011 the average annual cost of the war per serviceman in Iraq was $802,000.
U.S.A. Inc. is a nonpartisan report that looks at the U.S. Federal government and its Financials as if it were a business. The Report was compiled by Mary Beeker, a former financial analyst at Morgan Stanely https://docs.google.com/viewer?a=v&pid=gmail&attid=0.1&thid=12e7404681f4b1cf&mt=application/pdf&url=https://mail.google.com/mail/?ui%3D2%26ik%3D46956795e1%26view%3Datt%26th%3D12e7404681f4b1cf%26attid%3D0.1%26disp%3Dsafe%26zw&sig=AHIEtbTr6aRLWYb4jGjx6PM1RtFa_0aN_Q
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U.S. Troops Support Drug Trade in Afghanistan
http://www.youtube.com/watch?v=t_r28QxXsr8 U.S Sponsored Opium Drug Trade
http://www.youtube.com/watch?NR=1&v=HNqIrDKnNE8 U.S. Marines Guard Afghanistan Poppy Fields
Interest Paid on National Debt Verses Budget Cuts
For the first six months of this year we have paid 215 billion in interest on the national debt. At present trends we would need to pay 430 billion on interest in 2011. The interest payment in 2010 was 413 billion. The link shows how interest payments are increasing over time.
Interest rates paid on National debt were approximately 3.2% in March 2010 and they are approximately 3% in March 2011. If the economic recovery continues the Fed is expected to raise the interest rates. Can you imagine how much we would be paying if we had a 5%, 10% or 18% interest rate like we did during the Carter Administration. http://www.treasurydirect.gov/govt/rates/pd/avg/avg.htm
Today the Republicans and Democrats are squabbling over whether to cut 61.3 billion or 33 billion from the budget when we have to pay over 430 billion dollars a year on interest on the debt in 2011 alone. Does anyone beside myself see the idiocy of this mock fight, and on top of this the executive branch has involved the U.S. in a third costly war without consulting Congress. Has anyone figured out yet why the Congress is not resisting?
42 Cents of Every Dollar Government Spends Is Borrowed/AP/4/23/2011 http://hosted2.ap.org/APDEFAULT/89ae8247abe8493fae24405546e9a1aa/Article_2011-04-23-Government%20Default-What%20If?/id-8c41a66021604484b9344ba359d92668
Former Secretary of the Treasury/Paul O'neill Proclaims If You Oppose Raising Debt Ceiling then You Are Al Qaeda 4/28/2011
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Secretary of the Treasury Timothy Geithner Said Budget Proposed by Obama leads to “Unsustainable Obligations over Time
Geithner said the budget proposed by President Barack Obama leads to “unsustainable obligations over time.” That’s in contrast to Obama and White House officials who have argued the plan balances the budget without adding to the national debt. Geithner testified to the Senate Budget Committee on Thursday February 17th 2011.
Ben Bernanke (Fed Chairman) Goes On Record to Warn U.S. Deficit ‘Not Sustainable’
GAO Projections Present Course on Budget Unsustainable
Gary Johnson Former Governor of New Mexico Debt Is Ponzi Scheme
CBO Director Warns Trillion Dollar Deficits Risk Economic Meltdown.
http://www.foxnews.com/politics/2011/01/27/cbo-director-trillion-dollar-deficits-risk-fiscal-crisis/
I quote directly from the website. “The top numbers cruncher for Congress warned Thursday that the federal government increasingly risks sending the country into a "fiscal crisis," projecting that unless cuts are made, within a decade the national debt could reach nearly 100 percent of all annual economic activity.
That's like having $50,000 in debt on a $50,000-a-year salary.”
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Obama Budget Plan Shows Interest Owed on National Debt Quadrupling in Next Decade
Below I quote some highlights directly from the Washington Post article.
· Interest payments on the national debt will quadruple i n the next decade and every man, woman and child in the United States will be paying more than $2,500 a year to cover for the nation's past profligacy, according to figures in President Obama's new budget plan.
· Starting in 2014, net interest payments will surpass the amount spent on education, transportation, energy and all other discretionary programs outside defense. In 2018, they will outstrip Medicare spending. Only the amounts spent on defense and Social Security would remain bigger under the president's plan.
· "We're running a gigantic deficit, and we're not growing very fast," said Kenneth Rogoff, an economics professor at Harvard University and former chief economist at the International Monetary Fund. "We're on a dramatically unsustainable path."
· The Obama administration's latest forecasts starkly illustrate the phenomenon of generation shifting, moving today's costs to future taxpayers. The borrowing the United States did over the past decade - to pay for the 2001 tax cut, the wars in Iraq and Afghanistan, and propping up the economy during the steep 2009 downturn - is coming due this decade.
It seems like the liberal Washington Post is kind of dumping on Obama. Remember that the debt has gradually been increasing under both Republican and Democratic presidents. I suspect that it is the nature of our money debt system that causes the debt to go up. If we don’t change the monetary system it won’t make a difference if you put democrats or republicans in control of the executive or legislative branches in the Federal government. Past history over the last century shows both parties are leading us to bondage, slavery and tyranny!
Debt Slaves on Uncle Sam’s Plantation
DEBT SLAVES - 20JUNE2011.docx
Other Debt Articles, Mostly Government Sources
USA Today Breaks Down Sources of Debt Cost per Household.
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http://www.usatoday.com/news/washington/2011-06-06-us-debt-chart-medicare-social-security_n.htm Items of interest
· 61.6 Trillion in Unfunded Federal Liabilities, $534,000 per household, probably higher now. Below U.S. Today breakdown of above.
· Medicare $24.8 T $212,500 per Household. Social Security 21.4 T $183,400 per household. Note SS shortfall grows by 1.2 T annually. Federal Debt 9.4 Trillion, $79,900 per household.
· Military Retirement/Disability Payments 3.6 Trillion, $31,200 per household. Federal Employee Retirement Benefits 2 T, $24,000 per household.
Total Federal Government Revenue Collected in 2010
Approximately 2 trillion 330 billion and 397 million was raised by the Federal government through individual, corporate, employment, excise, gift, and estate taxes. How much further can taxed be raised to pay off the debt without destroying the economy?
U.S. Federal Government Size (as Measured by Spending) by Presidential / Political Party / Excellent Graph
http://www.truthfulpolitics.com/http:/truthfulpolitics.com/comments/u-s-federal-government-size-as-measured-by-spending-by-president-political-party/ Scroll to the end of the short article to see the graph taken from the Executive Office of the President of the United States and you will see there is little difference in growth of the Federal Government regardless of which political party is in power.
The Risks of Growing Entitlement Spending!
The following GAO website has a chart 4 titled, Fundamental Reforms Are Needed Now, on page 6, powerfully illustrating the dangers of our unreformed entitlement programs. http://www.fms.treas.gov/frsummary/frsummary2007.pdf The Government Accountability Office is generally considered a neutral organization by both political parties. If you google, A Citizen’s Guide to the Financial Report of the U.S. Government you will find that the GAO does yearly reports going into more detail about the nature of our debt.
Considering just that one chart, I noted the following:
· Over time the revenues or taxes collected by the Federal government represent about 18% of the yearly Gross Domestic Product. It has rarely fluctuated from that amount.
· Federal Discretionary Spending or (spending on programs that the Federal government is not obligated to fund) has significantly decreased as a total percentage of the budget, while spending on programs that the Federal government is obligated to fund has become a greater percent of the total federal budget.
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· Entitlement programs such as social security and Medicare take up a greater share of the budget leaving less money for other discretionary programs.
· The rate of interest paid on these programs also increases over time and if not reformed will eventually take up the entire Federal budget leaving no money for infrastructure, defense, education or other vital programs. Over time without reforms we will no longer be able to pay our interest obligations and at that point the Federal government will be bankrupt.
Without Major Changes, U.S. Headed Toward Bankruptcy
This graph below shows Net interest Owed by the Federal government. Net interest is the interest owed by the Federal Government minus interest earned by other sources. In this case most of the interest came from money in the social security fund. Unfortunately this money is disappearing as more and more people take out social security so now the system is running in the red. The
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,
,
,
,
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source of the graph is the Office of Budget and Management in the Federal Government. http://www.bearingdrift.com/wp-content/uploads/magimagenetinterest.gif
Personal Debt Interesting Statistics
Here is some data I collected in 2010 and 2011.
A Rough Estimate of How Much Each Borrower Pays in Interest Over a Life Time Versus Those Who Pay for Goods and Services in Cash!
Type of
Goods or
Services
|
Cost of Goods or
Services Paid in
Cash Average
Cost
|
Loans Created to Pay
For Goods and Services
Adding 120 % Extra Cost
In Interests Payments
|
Notes
|
House
|
$260,000
|
$572,000
|
2010 Census Edison
Quote
|
College
Tuition 4 Years
|
$100,000
|
$220,000
|
College Board 5%
Inflation
|
New Car
|
$28,400
|
$62,480
|
National Auto Dealers
Association*
|
Average
Credit Card Debt
Per Adult
|
$3,752* See
|
$9,380* For this I calculated that over time one paid 150% in interests because credit card interest rates average around 16.75% a year
|
Indexcreditcards.com
|
Total
Costs
|
$392,152 for
Paying in Cash
|
$863,860 for individuals paying off loans.
|
Borrowers spent $462,328 dollars more than those people who were able to pay for items in cash. Most people borrow money to buy more than 1 new car in their life times so each borrower probably pays a half million or more in interest payments to the banks for their various loans. In addition if you look at bullet number 2 below the amount borrowers pay to the banks in interests is actually much higher because the census bureau claims average credit card debt is over $5,000 dollars! The following website shows average interest rates to buy a new automobile for a 60 month loan in 2011. The average interest rates for loans was a little over 5% which are the lowest rates in years. http://www.bankrate.com/finance/news/auto/interest-rates-010512.aspx Can you imagine what the rates were when the economy was strong? What do you suppose the banks do with all this money?
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Here are other interesting facts about personal debt.
· Some who study our monetary system claim over time we will drown in debt. Data seems to support their hypothesis. According to the Federal Reserve the average American Home owner owes $119,000 in house, auto, college, credit card and other loans. http://www.huffingtonpost.com/2011/06/09/home-equity-lowest-since-wwii_n_874055.html
· In 2010, the US census bureau reported that U.S. citizens owed over $886 billion in credit card debt and that figure is expected to rise to $1.177 trillion this year. More specifically, the report states that each card holder has an average credit card debt of $5,100 and this number is projected to reach $6,500 by the end of the year. (source: www.money-zine.com/Financial-Planning/Debt-Consolidation/Consumer-Debt-Statistics
· For a loan for a house, car, college, medical bills or a business for every $1.00 you pay for the house, car, etc. you pay between $1.20 to $1.50 to the bank! Who provides you more goods or services, the ones creating the house, teaching in the colleges or the banks? Perhaps this is the issue at the heart of our economic plight!
Brainwashed and/or My Devilish Impulse What the Politicians and the Media Are Not Telling Us About the Debt
I have been dying to do this for a long time so now I am going to figure this out. You see my Uncle keeps telling me he needs money and being a dutiful nephew I feel guilty if I don’t help but something seems fishy.
I don’t know what he spends it on, drugs, women fancy restaurants, maintaining the empire, but I know I don’t spend half as much as he does. Where does he put it?
So he’s been begging me, just one more time, I will be responsible and I will pay you back but something is fishy. So he tells me that he’s gonna cut back his spending 1.2 trillion in the next 10 years. So lets figure this out?
According to the Treasury Department as of November 18, 2011 our official debt was $15,040,208,108,195.33. Let’s go back to November 18,2010 and see what the debt was on that date. It was 13,788,455,142,118.05. Is any one seeing a problem yet? http://www.treasurydirect.gov/NP/BPDLogin?application=np
Lets subtract the ladder number from the former number.
Table 1 2010 Debt Subtracted From 2011 Debt
$
|
1
|
5
|
0
|
4
|
0
|
2
|
0
|
8
|
1
|
0
|
8
|
1
|
9
|
5
|
.
|
3
|
3
|
-$
|
1
|
3
|
7
|
8
|
8
|
4
|
5
|
5
|
1
|
4
|
2
|
1
|
1
|
8
|
.
|
0
|
5
|
1
|
2
|
5
|
1
|
7
|
5
|
2
|
9
|
6
|
6
|
0
|
7
|
7
|
.
|
2
|
8
| ||
So as you can see from table 1, in one year from November 18, 2010 until November 18, 2011 our national debt from the Treasury Department Data has increase more than 1.25 Trillion dollars IN JUST ONE YEAR!!! Does any one see a problem here?
The Republicans and Democratic Parties are fighting over how to reduce the budget by 1.2 Trillion dollars in 10 years when last year the budget increased by 1.25 Trillion dollars!!! The scariest aspect of this debt charade is much of the American population is too drugged and/or brainwashed to even know what is going on. Please evaluate this for yourself and consider passing it on.
Can you see why I held the media in such contempt and I am angry with my countrymen! Do you hear any of the Republican or Democratic 2012 presidential candidates or politicians talking about this other than Ron Paul?
A very popular entertaining conservative talk show host in my area asked the question, “Would you vote for Ron Paul for President if he was running on a third party ticket?” His reasoning was that Republicans are more likely to reduce the debt than Obama. I called the radio talk show. Here was the jest of the conversation.
Me: I would vote for Paul in a heartbeat if he ran as a 3rd party candidate.
Host: ______, you realize if you vote for him, Obama is likely to win and this out of control spending would continue. You would be making the hole in the ship much bigger.
Me: I think it does not matter if you vote for any of the other Republican candidates they won’t stop the increasing debt or the erosion of our Constitution. Over the history of the nation both Democratic and Republican administrations have increased the debt and eroded our liberties and rights and the only candidate talking about these critical issues in the debates is Ron Paul.
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Host: Don’t you think that the Republican candidates have a better understanding of the debt crisis we are in then Obama?
Me: If they truly understand that acute crisis that we are in as I know that you and I feel, why is Ron Paul the only candidate talking about the threats of the debt and tyranny?
Host: I think these issues are not discussed because the media that asks the questions don’t ask questions about these topics.
Me: Yet Ron Paul still brings up these topics. If the other Republican candidates understand the nature of this crisis why are they not discussing it? They are not talking about the debt or the erosion of our liberties. Judging by the behavior of the other candidates they will not address the debt or the attacks on our Constitution. To me it does not matter if you elect Obama or one of the other Republican candidates. None of them will address the huge hole that already exist in our ship!
Host: ______, you make a fair point.
At this point the host hung up and went on to another topic.
Some Easy to Understand Graphs Related to the Debt.
Most of these graphs are taken from non-partisan government agencies such as the CBO or GAO and Treasury Direct. They do detailed in depth analysis of the budget for the House of Representatives and the Senate.
The graph is titled, Government Spending and Debt. U.S. Government Size (as Measured by Spending) by President/Political Party. The data is provided by: The Executive Office of the President of the United States. Here is a picture of the graph in the following link. You will have to copy it to your browser to get to it. http://www.truthfulpolitics.com/http:/truthfulpolitics.com/comments/u-s-federal-government-size-as-measured-by-spending-by-president-political-party/
Interest Paid and Rate on National Debt Over the Last 20 Years.pdf
Here is a link http://www.treasurydirect.gov/govt/reports/ir/ir_expense.htm
Here is a link to interest rates in 2011 http://www.treasurydirect.gov/govt/rates/pd/avg/2011/2011.htm
I thought his chart is clearer and more interesting but I could not find it anywhere. Perhaps he took information from 2 or more sources. It seems to be accurate to me.
Fiscal Interest on Debt Average Percent
2011 $454,393,280,417 2.996%
2010 $413,954,825,362 3.326%
2009 $383,071,060,815 3.811%
2008 $451,154,049,951 4.785%
2007 $429,977,998,108 5.040%
2006 $405,872,109,316 4.820%
2005 $352,350,252,508 4.551%
2004 $321,566,323,971 5.437%
2003 $318,148,529,152 5.068%
2002 $332,536,958,599 5.707%
2001 $359,507,635,242 6.594%
2000 $361,997.734,302 6.537%
1999 $353,511,471,723 6.550%
1998 $363,823,722.920 6.839%
1997 $355,795,834,215 6.881%
1996 $343,955,076,695 6.995%
1995 $332,413,555,031 7.087%
1994 $296,277,764,246 6.691%
1993 $292,502,219,484 7.217%
1992 $292,361,073,756 7.993%
Total $7,215,171,474,129
AVG/Year $360,758,573,756 5.743%
Here is a link to interest rates in 2011 http://www.treasurydirect.gov/govt/rates/pd/avg/2011/2011.htm
I thought his chart is clearer and more interesting but I could not find it anywhere. Perhaps he took information from 2 or more sources. It seems to be accurate to me.
Fiscal Interest on Debt Average Percent
2011 $454,393,280,417 2.996%
2010 $413,954,825,362 3.326%
2009 $383,071,060,815 3.811%
2008 $451,154,049,951 4.785%
2007 $429,977,998,108 5.040%
2006 $405,872,109,316 4.820%
2005 $352,350,252,508 4.551%
2004 $321,566,323,971 5.437%
2003 $318,148,529,152 5.068%
2002 $332,536,958,599 5.707%
2001 $359,507,635,242 6.594%
2000 $361,997.734,302 6.537%
1999 $353,511,471,723 6.550%
1998 $363,823,722.920 6.839%
1997 $355,795,834,215 6.881%
1996 $343,955,076,695 6.995%
1995 $332,413,555,031 7.087%
1994 $296,277,764,246 6.691%
1993 $292,502,219,484 7.217%
1992 $292,361,073,756 7.993%
Total $7,215,171,474,129
AVG/Year $360,758,573,756 5.743%
Per Person Income and Spending in Constant 1975 Dollars.pdf
54K
Here is a link showing this fact. http://taxprof.typepad.com/taxprof_blog/2011/07/fact-check--1.html
The Social Security Problem.pdf
261K Here is a link to the Washington Post article that admits also the government borrowed all the fund in the Social Security Trust Fund http://www.washingtonpost.com/business/economy/the-debt-fallout-how-social-security-went-cash-negative-earlier-than-expected/2011/10/27/gIQACm1QTM_story.html
The Government Accountability Office’s Citizen Guide for 2008, look at on page 7 chart 5. In this graph what is below the solid black line represents what is covered by government revenue. What is above the black line needs to be borrowed from the banks. I believe the agency publishes this every year describing their view of the Federal governments financial health. http://www.gao.gov/financial/citizensguide2008.pdf
The GAO guide for 2010 shows that some programs to stabilize the economy have paid off page vii however other charts show that over the long run continuation of the present policies will bankrupt us. http://www.gao.gov/financial/fy2010/10guide.pdf
Devaluation of the Dollar.pdf
The GAO guide for 2010 shows that some programs to stabilize the economy have paid off page vii however other charts show that over the long run continuation of the present policies will bankrupt us. http://www.gao.gov/financial/fy2010/10guide.pdf
Devaluation of the Dollar.pdf
294K
Here is a chart from the Minnesota Federal Reserve Bank charting the Consumer Price Index from 1800 until 2008. http://www.minneapolisfed.org/community_education/teacher/calc/hist1800.cfm Here is the link to the graph showing the Consumer Price Index from 1800-2008 which might correlate to the Chart from the Minnesota Fed. Scroll down a little to the first graph. If you look at the second graph it shows today’s dollar is worth 87% less than the 1950 dollar. http://grandfather-economic-report.com/inflation.htm Here is the link to the home page of the website that uses a lot of government documents to support various trends they see going back 200 years. http://grandfather-economic-report.com/
Page 29
The Economic
Colonization of the United States by Communist China Is Related to our Debt to
Communist China!
See articles related to this article on pages 3-7 of this blog.
One of the
largest holders of our debt is China.
It needs to be paid one way or another. There are rumors that China and other countries are buying
up large tracks of our land. Below
under the title, 45 Signs that China is Colonizing America I provide evidence
that indeed China is buying up portions of our country.
Here is something I have not heard
discussed. Could the U.S.
government be implementing policies to force large corporations to move to
China? We have the highest
corporate tax in the world so companies might move to China to pay lower
taxes. U.S. voters think
government officials are incompetent idiots but maybe this is their covert way
of paying the debt. The U.S. can’t
pay this massive debt so instead they implement policies so companies leave the
U.S. and go to China. According to
the link below, GM bailed out by taxpayer money is moving most of their
operations to China. Do you think
that this move is more beneficial to the American taxpayers or the Chinese? http://www.youtube.com/watch_popup?v=Lvl5Gan69Wo
45
Signs that China is Economically Colonizing America
Michael Snyder
The American Dream
Thursday, May 24, 2012
Just because you were once the
most powerful nation on earth does not mean that you will always be the most
powerful nation on earth. Every single year, hundreds of billions of
dollars leaves the United States and goes to China.
This enormous transfer of wealth
has had a dramatic effect on both countries. In case you haven’t noticed,
many of our formerly great manufacturing cities such as
Detroit are rotting away while shining new factories and skyscrapers are going
up all over China. If you go into any major retail store today and start
turning over products, you will find that hundreds of them have been made in
China and that very few of them have been made in America. As a nation,
we buy far, far more from China than they buy from us. As a result, China
is absolutely swimming in cash and they have been looking for things to do with
all that money. One thing that China has done is loan the U.S. government
over a trillion dollars and this has given the Chinese a tremendous amount of
leverage over us. China has also started to buy up businesses, real
estate and natural resources all over America. This kind of “economic
colonization” is similar to what China has already been doing in Africa, South
America and Australia. The formula is actually very
simple. We send them our money and then they use it to buy us. With
each passing day China’s ownership over America grows, and it is frightening to
think about where all of this could end.
The following are 45 signs that
China is colonizing America….
#1 It was recently announced that China’s Dalian Wanda Group
has bought U.S. movie theater chain AMC Entertainment for a whopping 2.6 billion dollars. This deal
represents China’s biggest corporate takeover of a U.S. firm ever. Here are other
links to this event. http://www.npr.org/2012/05/21/153197457/chinese-firm-buying-amc-movie-theater-chain
#2 Earlier this month, the Federal Reserve announced that it has
given approval for banks owned by the Chinese government to buy stakes in
U.S.-owned banks. Here are other links to this event.
http://www.usnews.com/news/articles/2012/05/10/in-the-red-chinese-banks-moving-into-us-market
http://online.wsj.com/article/SB10001424052702304543904577394533978464876.html
Page 30
#3 A few days ago Reuters reported that China is now able to
completely by pass Wall Street and purchase U.S. debt directly from the U.S.
Treasury Department.
#4 A recent investigation by the U.S. Senate Committee on Armed
Services found more than one million counterfeit Chinese
parts in the Department of Defense supply chain. How in the world could
we be so stupid?
Here is a link to the Congressional document. http://www.armed-services.senate.gov/Publications/Counterfeit%20Electronic%20Parts.pdf
#5 After being bailed out by U.S. taxpayers, General Motors is
currently involved in 11 joint ventures with companies owned by the
Chinese government. The price for entering into many of these “joint
ventures” was a transfer of “state of the art technology” from General
Motors to the communist Chinese.
#6 A Chinese company known as “Sino-Michigan Properties LLC”
has purchased 200 acres of land near the town of Milan, Michigan. The
goal is to build a “China City” with artificial lakes, a Chinese
cultural center and hundreds of housing units for Chinese citizens.
#7 As I reported on recently, corporations controlled by the
Chinese government have been rapidly buying up U.S. oil and gas deposits worth
billions of dollars. Here are other links to this activity.
http://wyomingenergynews.com/2011/01/china-firm-to-pay-570m-for-oil-and-gas-interests-in-wyoming-and-colorado/ http://blogs.wsj.com/deals/2012/03/06/chinas-footprint-in-us-oil-a-state-by-state-list/
http://www.mysanantonio.com/business/local/article/China-stakes-claim-to-S-Texas-oil-gas-858329.php
#8 Chinese investors have been gobbling up real estate all over
New York City. The following is from a recent Forbes article….
According to a recent report in
the New York Times, investors from China are “snapping up luxury apartments”
and are planning to spend hundreds of millions of dollars on commercial and
residential projects like Atlantic Yards in Brooklyn. Chinese companies also
have signed major leases at the Empire State Building and at 1 World Trade
Center, the report said. Here are more links. http://www.forbes.com/sites/investor/2011/09/15/whats-china-buying-in-the-u-s/
http://www.nytimes.com/2011/08/11/nyregion/chinese-investment-grows-in-new-york-city.html
http://topics.nytimes.com/top/reference/timestopics/subjects/f/freedom_tower_nyc/index.html?inline=nyt-classifier
#9 The Chinese are also doing huge real estate deals in cities
in the middle part of the country. The following example is from an article in the Toledo Blade….
Dashing Pacific Group Ltd.,
which has already purchased the nearby Docks restaurant complex for $2.15
million, put its $3.8 million offer to buy the southern 69 acres at the Marina
District in East Toledo back on the table for approval by Toledo City Council.
Additionally, Dashing Pacific Chairman Yuan Xiaohong, in a letter signed in
Hangzhou, said the firm wants a two-year option to buy the decommissioned
Toledo Edison power plant property on the site.
#10 According to ABC News, major road and bridge projects all
over the United States are being built by Chinese companies. Meanwhile, there
are millions upon millions of blue collar American workers that cannot find
jobs. The following is a brief excerpt from a recent ABC News article….
In New York there is a $400
million renovation project on the Alexander Hamilton Bridge.
In California, there is a $7.2
billion project to rebuild the Bay Bridge connecting San Francisco and Oakland.
In Alaska, there is a proposal
for a $190 million bridge project.
These projects sound like steps
in the right direction, but much of the work is going to Chinese
government-owned firms.
Page 31
“When we subsidize jobs in
China, we’re not creating any wealth in the United States,” said Scott Paul,
executive director for the Alliance for American Manufacturing. Below are
related links
http://abcnews.go.com/WNT/video/us-bridges-roads-built-chinese-firms-14594513?tab=9482931§ion=4765066&playlist=14594944
http://www.nytimes.com/2011/06/26/business/global/26bridge.html?_r=1&pagewanted=all This next link clarifies that Obama did not pass a law to get stimulus
funds to pay the Chinese firms for the workers. Instead state officials hired the Chinese workers for
various reasons. http://www.factcheck.org/2012/02/did-obama-approve-bridge-work-for-chinese-firms/
#11 The new World Trade Center tower is going to
include glass that has been imported from China.
#12 The new Martin Luther King memorial on the National
Mall was made in China.
#13 Check out this incredible photo which contrasts the
decline of Detroit over the years with the amazing rise of Shanghai, China.
#14 A couple of years ago, a large Chinese company was
considering building “a 10,000- to 30,000-acre technology zone for industry,
retail centers and homes”
#15 Our trade deficit with China in 2011 was $295.5 billion. That was the largest
trade deficit that one country has had with another country in the history of
the planet.
#16 In 2011, our trade deficit with China was 28 times larger than it was back in 1990 and
more than 49,000 times larger than it was back in 1985.
#17 Back in 1998, the United States had 25 percent of the
world’s high-tech export market and China had just 10 percent. Today, China’s
high-tech exports are more than twice the size of U.S. high-tech
exports. http://247wallst.com/2012/01/24/eight-industries-the-u-s-has-lost-to-china/3/
#18 America has lost more than a quarter of all of its high-tech
manufacturing jobs over the past ten years. http://www.washingtonpost.com/business/economy/us-losing-high-tech-manufacturing-jobs-to-asia/2012/01/17/gIQA9P1S6P_story.html
#19 According to the Economic Policy Institute, America is
losing half a million jobs to China every single
year. http://www.epi.org/page/-/pdf/ib283.pdf
http://www.cnbc.com/id/39076694/Morici_Obama_Pelosi_Neglect_of_Trade_Deficit_Imperils_Recovery
#20 The U.S. spends about 4 dollars on goods and services from
China for every one dollar that China spends on goods and services from the
United States. Does that sound like “fair trade” to you?
#21 While we allow Chinese goods to freely flood our shores,
China just keeps slapping new tariffs on American-made goods. According
to the New York Times, a Jeep Grand Cherokee that
costs $27,490 in the United States costs about $85,000 in China thanks to all
the tariffs.
#22 According to U.S. Representative Betty Sutton, an average
of 23 manufacturing facilities a day closed down
in the United States during 2010.
#23 The United States has lost an average of approximately 50,000 manufacturing jobs a month and more than 56,000manufacturing facilities in
the United States have been shut down since China joined the World Trade Organization
in 2001.
#24 The United States has lost a staggering 32 percent of its
manufacturing jobs since the year 2000.
We may have lost jobs but Forbes claims U.S. still greatest
manufacturer. http://www.forbes.com/sites/timworstall/2011/06/17/what-decline-of-american-manufacturing/
#25 Between December 2000 and December 2010, 38 percent of
the manufacturing jobs in Ohio were lost, 42 percent of the manufacturing jobs
in North Carolina were lost and 48 percent of the manufacturing jobs in
Michigan were lost.
Page 32
#26 In 2010, China produced more than twice as many automobiles as the
United States did.
http://247wallst.com/2012/01/24/eight-industries-the-u-s-has-lost-to-china/3/
#27 In 2010, China produced 627 million metric tons of steel. The
United States only produced 80 million metric tons of steel. http://247wallst.com/2012/01/24/eight-industries-the-u-s-has-lost-to-china/3/
#28 In 2010, China produced 7.3 million metric tons of cotton. The
United States only produced 3.4 million metric tons of cotton.
#29 Today, China produces nearly twice as much beer as the United States
does. http://247wallst.com/2012/01/24/eight-industries-the-u-s-has-lost-to-china/3/
#30 85 percent of all artificial Christmas trees are made in China.
#31 China is now the number one producer of wind and solar
power on the entire globe.
#32 Chinese solar panel production was about 50 times larger in 2010 than it was
in 2005.
#33 Right now, China is producing more than three times as much coal as the
United States does.
#34 China is now the number one supplier of
components that are critical to the operation of U.S. defense
systems. The following Government Accounting Office (GAO) submitted a report
to the Committee on Armed Services discussing U.S. dependence on China for rare
earth elements. These elements are
essential for many components of our military defenses. The U.S has rare earth elements and they previously possessed the
capability to process them for their needs. However they allowed the Chinese to take over the processing
of these elements so we are now totally dependent upon them for the
elements! See the GAO document
admitting the above. http://www.gao.gov/new.items/d10617r.pdf
#35 According to author Clyde Prestowitz, China’s number one
export to the U.S. is computer equipment. According to an
article in U.S. News & World Report, during 2010 the number one U.S. export
to China was “scrap and trash”. Remember our military’s weapons systems are highly reliant
on computer technology. Guess
where we get most of the computer technology from now?
#36 According to Professor Alan Blinder of Princeton
University, 40 million more U.S. jobs could be sent
offshore over the next two decades.
#37 The United States had been the leading consumer of energy on
the globe for about 100 years, but during the summer of 2010 China took over the number one spot.
#38 15 years ago, China was 14th in the world in published
scientific research articles. But now, China is expected to pass the United States and become number
one very shortly.
#39 China now awards more doctoral degrees in engineering each year
than the United States does.
#40 China now possesses the fastest supercomputer on the entire
planet.
#41 China now has the world’s fastest train and the world’s most
extensive high-speed rail network.
#42 The Chinese economy has grown 7 times faster than the U.S. economy has over
the past decade.
#43 The Chinese economy is projected to be larger than the U.S.
economy by 2016.
#44 One economist is projecting that the Chinese economy will be three times larger than the U.S.
economy by the year 2040.
#45 China now holds approximately 1.17 trillion dollars of U.S. government
debt. If you were alive back when Jesus was born and you had spent a
million dollars every single day since then, you still would not have spent
that much money by now.
In compiling the statistics
above, I relied heavily on two articles that I previously authored. You
can find them here and here.
Please share this list with as
many people as you can. It is imperative that the American people get
educated about why our economy is falling apart and about why
there are so few jobs.
Thanks to the foolishness of our
politicians, today American workers have to compete directly for jobs with
workers on the other side of the globe where it is legal to pay slave labor
wages.
Do you want your standard of
living to continue to descend toward the level of a communist worker making
about a dollar an hour?
Do you want tens of millions of
American workers to be unemployed indefinitely as millions of good jobs
continue to leave this country?
If not, you better stand up and
say something while you still can.
The greatest economy the world
has ever seen is falling to pieces right in front of our eyes and most
Americans are dead asleep.
Is there any hope for us?
Page 33
Similar/Related Articles
On one of Michael
Savage’s radio talk programs he said the following and I summarize. I apologize because I don’t remember
which show it was, but from what little knowledge of history I have, what he said
rang true. However, at the time I had not thought about it. Although we lost a lot of people in World War II, the
Chinese and the Russians lost millions more because much of the war was fought
on their homelands. In a sense
they won the war but guess who supplied the weapons and tanks? It was our great industrial base. It was our huge auto industry that
supplied many of the tanks the allies used. We also supplied many of the guns and other
weapons. Without this massive
industrial base I doubt if the allies would have won. If we have a conflict with China or one of their allies now
or in the future will may not be so fortunate because China is using our debt
to buy our industries. As I mentioned
earlier, one of the earliest laws created during tribal times is, if you
borrow money from someone and you can’t pay it back, then you become a slave to
the lender, until such a time that you can pay back the debt or you die! The same is true for nations, and your
children will not be let off the hook, because of the ignorance, apathy or weakness of their parents.
I work with Chinese
people in my Tia Chi class and they are not stupid people, who can be easily
taken advantage of. They are not
going to take our debt on unless we offer them collateral. So you can bitch at the politicians and
corporate tycoons all you want about their idiocy but the rules applying to
debtors and lenders are among the most powerful in the world. Is it possible that China is
economically colonizing us, and much of the West, because “We the People “
refuse to give up our addiction to spending far beyond our means?
Smithfield Deal: Past Chinese
Acquisitions Bode Well
http://online.wsj.com/article/SB10001424127887324682204578515043950586274.html I was fascinated with this article because it
reviewed some of the Chinese acquisitions of American industries and it
discussed the leadership style of the Chinese. In most cases the Chinese leave top management in place to
run the companies. Intelligent
empires recognized over time that as long as their subjects pay them a tribute
that is not overly excessive then it is best to give the subjects as much
autonomy as possible. By the way the latest Smithfield
acquisition is the largest Chinese acquisition thus far. My discomfort is the Chinese have a different history and culture from us and there is a fair chance that our cultures may clash some day. Then it will not turn out well for us if we continue to allow them to take over our economy!
Page 34
Shuanghui’s
Smithfield Buy Would Set China to U.S. Deal Record
http://blogs.wsj.com/moneybeat/2013/05/29/shuanghuis-smithfield-buy-would-set-china-to-u-s-deal-record/ This Wall Street blog lists the ten top
Chinese acquisitions of United States companies including the most recent and
largest acquisition of Smithfield by Shuanghui.
Interesting Links Related to Personal
Debt 2011
Average
cost of a new house from 1963-2011
Today average cost is around $260,000. http://www.census.gov/const/uspricemon.pdf
Average
cost of 4 year college $100,000. http://apps.collegeboard.com/fincalc/college_cost.jsp
Average
interest rates on student loans between 5-8% http://www.collegescholarships.org/loans/interest.htm
Average Cost
of a new Car $28,400 http://www.ehow.com/facts_5977729_average-cost-new-car.html
Average
family health insurance policy: $13,375, up 5% http://www.usatoday.com/money/industries/health/2009-09-15-insurance-costs_N.htm
Average
Credit Card debt per adult Americans is $3752 per adult. http://www.indexcreditcards.com/creditcarddebt/
How
many adults live in America today? 217.8 million http://wiki.answers.com/Q/How_many_people_in_America_over_18_years_of_age
Average
Credit Card Rate 16.75% http://www.indexcreditcards.com/credit-card-rates-monitor/
In
2010 the U.S. census bureau is
reporting that U.S. citizens have over $886 billion in credit card debt and
that figure is expected to rise to 1.177 trillion this year. More specifically, the report states
that each card holder has an average credit
card debt of $5,100 and this number is projected to reach $6,500 by the end
of the year.(source: www.money-zine.com/Financial-Planning/Debt-Consolidation/Consumer-Debt-Statistics
Page 35
Will the Budget Compromise of 2013 Work or is
it a Scam? Some Troubling
Government Data
NPR
and Other sources say the recent budget compromise by House will decrease
Federal Deficit spending by 25 billion dollars over 10 years! Will it work? http://www.npr.org/blogs/thetwo-way/2013/12/12/250534165/house-approves-budget-deal-compromise-heads-to-senate
Consider these numbers by the
Treasury Department.
http://www.treasurydirect.gov/NP/BPDLogin?application=np
This
website gives total public debt of the United States from March 1993 until just
a few days ago. If I want to
determine the national deficit for a year, I simply pick a date a year ago,
then I pick the same debt a year later.
By subtracting the debt from a year ago from the debt a year later you
will find the deficit for that period of time. Just for your information a deficit occurs when the Federal
government spends more money than it takes in from taxes. It raises the extra money by borrowing
from banks often by having the banks create more money. National debt is adding deficits over
time. Below in Table 1 table are
shown the deficits for the years from 2003 until 2013, the most recent 10 year
period.
Table 1 Deficit
Time Frame
12/12/12 to 12/12/13 Year 1 782,731,513,696
12/12/11 to 12/12/12 Year 2 1,312,404,130,070
12/12/10 to 12/12/11 Year 3 1,207,332,375,492
12/12/09 to 12/12/10 Year 4 1,764,976,368,545
12/12/08 to 12/12/09 Year 5 1,484,640,644,606
12/12/07 to 12/12/08 Year 6 1,422,773,616,596
12.12.06 to 12/12/07 Year 7 513,863,714,397
12/12/05 to 12/12/06 Year 8 528,657,234,612
12/12/04 to 12/12/05 Year 9 585,105,920,670
12/12/03 to 12/12/04 Year 10 607,157,528,882
Total Deficit Over 10 Years 10,209,643,148,685
Average Deficit Increase
Per Year 1,020,964,314,685
I came up with the average debt by adding the total deficit over the 10 year period, and dividing by 10.
Now lets look what most sources are saying. Congress is happy because it will reduce the Federal deficit by 25 billion in 10 years. This is like a drop in the bucket because the lowest amount that the deficit increased in the last 10 years was in year 7 as shown in the above table when the deficit increased by almost 514 billion dollars. If the Federal government had reduced their spending by 25 billion dollars in year 7, the best year with the lowest deficit, they would have reduced the deficit in that year by about 5%. If you consider that on average for those 10 years the deficit increased by a trillion a year for the 10 years then dividing 25 billion into a trillion is the same as dividing 25 into a thousand if you take 9 zeros from both numbers. 25 divided by a 1,000 = 0.025 percent. If you had a deficit of a trillion dollars in a given year and you reduced federal spending by 25 billion dollars in that year then you only decrease the rate of spending by 2.5%
Page 36
Even the above example is misleading because if the debt is anything like it has been in the last 10 years, the example I gave above shows what happens if our Federal government reduced spending by 25 billion in 1 year if the deficit increased by a trillion during that year. Actually the new budget compromise boasts about the Federal government decreasing the deficit by 25 billion in 10 years by 2023. Lets pretend that Congress promised in 2003 to reduce the deficit by 25 billion by 2013. In this time the debt increased not by 1 trillion but by 10 trillion if you look at the total deficit increases from table 1 above. Therefore if you line up ten trillion and 25 billion one number below the other, you can cross out the 9 zeroes in 25 billion and 9 zeroes in 10 trillion and then you have 25 divided by 10,000. The answer is 0.0025% This is only cutting the growth of spending by 2.5 thousandths percent in the 10 year period. Government Growth of spending would perhaps be cut by 2.5 thousandths percent. Why isn't anyone telling us what really is going on!
People say maybe we will have an economic expansion during that time. Perhaps the oil discoveries in the Midwest will provide enough assets to overcome our debt. However, we have other liabilities such close to 100 trillion in unfunded liabilities along with the increased costs of the Affordable Care Act. Also the interest paid on the debt is not considered. Now interest rates are at historic lows but they are expected to rise. See
Data for Table 2 is taken from http://www.treasurydirect.gov/govt/reports/ir/ir_expense.htm This link has interests paid on the debt going back to the year 1988. I included the interest payments on the debt for the last 10 years. For the first two months of October and November of fiscal year 2014, the interest rate payment total is $38,778,413,015.
Data for Table 2 is taken from http://www.treasurydirect.gov/govt/reports/ir/ir_expense.htm This link has interests paid on the debt going back to the year 1988. I included the interest payments on the debt for the last 10 years. For the first two months of October and November of fiscal year 2014, the interest rate payment total is $38,778,413,015.
Table 2 Interest Paid On the National Debt Fiscal Years 2003-2013
Fiscal Year
|
Interest Paid On The Debt
|
2013
|
$415,688,781,248.40
|
2012
|
$359,796,008,919.49
|
2011
|
$454,393,280,417.03
|
2010
|
$413,954,825,362.17
|
2009
|
$383,071,060,815.42
|
2008
|
$451,154,049,950.63
|
2007
|
$429,977,998,108.20
|
2006
|
$405,872,109,315.83
|
2005
|
$352,350,252,507.90
|
2004
|
$321,566,323,971.29
|
2003
|
$318,148,529,151.51
|
Page 37
Remember according to NPR and other sources, http://www.npr.org/blogs/thetwo-way/2013/12/12/250534165/house-approves-budget-deal-compromise-heads-to-senate the latest budget compromise will reduce the budget deficit by 25 billion dollars over 10 years. The average interest payment on the debt if you look at Table 2 is over 400 billion dollars a year! If the Federal government decided 1 year to slash spending by 25 billion in 1 this year then, the reduction would actually be 6.25% But that is not the deficit but only the interest on the debt in one year.
If the average interest payment on the debt per year is about 400 billion a year then over 10 years, the total interest paid on the national debt from fiscal year 2003-2013 would be about 4 trillion dollars. That is a 4 followed by 12 zeros. Let’s pretend that the Congress passed this budget compromise in 2003 instead of in 2013, and the Federal budget continued increasing at the rate it has since and the interest rates were the same as has happened in real time. If the Federal legislature kept their promise, the Federal deficit would have been slashed by 25 billion dollars in 10 years. However the total interest payment on the debt is 4 trillion dollars. If you eliminate an equivalent number of zeroes from the fraction 4 trillion over 25 billion, you end up with the equivalent fraction 4,000 over 25. Dividing 25 by 4,000 you get the percent 0.00625. So pretending that the debt increased to 4 trillion in 10 years and the Federal government reduced the debt by 25 billion it really only reduced the debt by slightly over 6 thousandths percent. But again remember we are only talking about interest on the debt here over the last 10 years not the actual increase of the debt!
If you look at the interest paid on the debt over the last 10 years it has actually stayed pretty steady. because the interest rates have gone down and the rate of growth of the debt has gone down as well recently. Also interest rates are at historic lows and the recent sequestration slowed down the rate of growth of the debt slightly. Interest rates are at historic lows because the Federal Reserve created trillions to buy defaulted Mortgages and pay for bailouts. Inflation will occur eventually caused by the huge increase of the money supply, then the Federal Reserve will raise interest rates to control inflation causing interest payments on the debt to rise. The 25 billion cut over ten years will mean virtually nothing!
If you look at this post on page 28, there is a graph from the Treasury Department showing the interest rate and the amount in interest paid on the debt over a 20 year period from 1992 until 2011. The total amount of interest alone, we paid through our taxes was over 7.21 trillion dollars. Here is a link http://www.treasurydirect.gov/govt/reports/ir/ir_expense.htm
Here is a link to interest rates in 2011 http://www.treasurydirect.gov/govt/rates/pd/avg/2011/2011.htm The amount paid is on the treasury website. I did not get the rates for the various years although I took it off this other graph. I suppose the rates for the various years could be googled. They are also probably on the Treasury website somewhere.
If you look at this post on page 28, there is a graph from the Treasury Department showing the interest rate and the amount in interest paid on the debt over a 20 year period from 1992 until 2011. The total amount of interest alone, we paid through our taxes was over 7.21 trillion dollars. Here is a link http://www.treasurydirect.gov/govt/reports/ir/ir_expense.htm
Here is a link to interest rates in 2011 http://www.treasurydirect.gov/govt/rates/pd/avg/2011/2011.htm The amount paid is on the treasury website. I did not get the rates for the various years although I took it off this other graph. I suppose the rates for the various years could be googled. They are also probably on the Treasury website somewhere.
If you want this file to be emailed to you or you notice mistakes, please email Johnjayunderhill@gmail.com and I will send you the document and or correct the errors.
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