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The Great Western Revenue Crisis, Part I

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While some may argue my criticism of the insipid mainstream media is too extreme, my rebuttal is simple: “don’t shoot the messenger.” It’s not simply that these media drones are wrong consistently – indeed, almost unfailingly – but in many instances their reporting on issues is literally 180 degrees opposite to the facts.

There can be no more obvious example of the mainstream media’s inability to distinguish “black” from “white” than its utterly worthless reporting on the debt crisis sweeping across Western nations. Not only have they been unanimously incorrect in identifying any of the causes of this debt-crisis, but these dolts can’t even manage to describe the problem correctly.

In this case it is necessary to put the proverbial cart before the horse. First I’ll show people what the Western debt crisis is really all about. Then once the problem is clear it will be much easier to understand/accept the real causes.

Sadly, while is truly a “Western” problem it will have to be illustrated with U.S. data, due to the lack of availability of “real dollar” data for other Western economies. It is ironic that the U.S. – which has both pioneered and perfected lying-with-numbers with its official statistics – is now the only place to obtain realistic (i.e. “real dollar”) economic data in many important categories.

This is due entirely to the tireless efforts of John Williams of Shadowstats.com, as well as the efforts of less-visible sites and individuals who have built upon that body work. Williams produces the only data on U.S. inflation (and many other key statistics) using the same methodology for each year’s calculation.

Conversely, as I have explained on previous occasions the U.S. government is continually “moving the goalposts” with its statistical lies. It is continually changing the methodology of its calculations. Not only are these “changes” comprised of ever more dubious/absurd “adjustments” and “assumptions”, but this intentional deceit is compounded by refusing to update old data with the new methodology – the only possible means to produce consistent measurements.

Instead, the U.S. government’s statistical liars simply string together these disconnected series’ of calculations – thus literally comparing “apples” to “oranges”. We can see not only proof of the deceit, but a clear indication of the motives for these lies when we examine charts which include both the official government lies along side data produced from Williams consistent (and statistically valid) methodology.

The two charts below not only demonstrate unequivocally that the Western “debt crisis” is a revenue crisis (not a “spending crisis”), but we can clearly see the efforts of the U.S. government statisticians to hide the true nature of the crisis – by creating phony data to suggest we are experiencing a spending crisis instead.

 

It is truly unfortunate that we are forced to rely upon U.S. data to illustrate this revenue crisis. As the great Warmonger of the last half-century, the U.S. has devoted a much larger percentage of its government expenditures to military spending (by several multiples) than any other nation in the post-Industrial Revolution era. The Soviet Union tried to match the massive Reagan arms-race of the 1980’s – and was completely bankrupted in the effort. Thus the “curve” of the spending chart is severely distorted by huge (and well-documented) explosions in U.S. military spending.

Looking at the chart below, the green line represents Williams’ data (i.e the Truth). We see U.S. government spending surging in the latter half of the 1960’s (the Vietnam War). We see it accelerate again in the 1980’s (the Reagan arms-race). But note that in the last few years of the Reagan regime – while military spending was still recklessly accelerating – that actual spending had topped, and even began to decline slightly.

This marked the beginning of the era of declining government services (and real spending on people). Apart from a tiny up-tick in U.S. government spending in the early 1990’s (the first war against Iraq), total U.S. government spending (in real dollars) has been steadily declining since the late 1980’s.

When we look at the light-blue line (i.e. the official government lies), we see the myth that the U.S. government and its media minions have been trying to sell to the sheep: that the U.S. is in the grip of an out-of-control “spending crisis.” Coincidentally the producer of this chart chose the year 2000 as his “base” for assigning a nominal level to these numbers.

It is shortly after 2000 that we see government lies about a spending crisis being ramped-up at exactly the same time that the government’s lies about inflation were also increasing at a near exponential rate. The U.S. government has worked very hard at producing the myth that it has been spending too much (on its own people), when in fact that spending has been in steady (perpetual?) decline for several decades.

What is the only other exception to that trend? We see a dramatic spike in U.S. government spending to finance the hand-outs to Wall Street following their self-destruction in 2008. What is absent from this chart? There is not even a tiny up-tick in real U.S. government spending following the infamous “9/11”.

Since that time the U.S. government has spent $trillions invading-and-occupying Afghanistan in the War for Drugs. It’s spent $trillions invading-and-occupying Iraq in the War for Oil. And total spending for the Orwellian “Department of Homeland Security” (and all of its fascist apparatus) has also likely totaled in the $trillions. But much of what this modern-day Gestapo does is kept totally secret – supposedly as a matter of “national security” – and thus we must attempt to deduce its activities (see The U.S. Prison-Cell Economy”).

Note what is relevant to this topic however, none of these $trillions on two wars and its own Secret Police was financed out of increased spending (in real dollars). As a matter of logic and arithmetic this means that all of this was funded by cutting what the government spends on its own people – trillions of dollars of cut-backs on social spending.

Already we are presented with several massive myths that have been gleefully propagated by the mainstream media. Let’s start with this one: the Afghanistan invasion and the Iraq invasion were wars in much “only a few Americans made sacrifices” (i.e. the soldiers and their families).

Obviously a lie. As the chart on spending clearly shows, in fact all ordinary Americans have been seriously impacted by massive cut-backs in government services. The truth is that only a few Americans did not have to make any “sacrifices” for those two wars.

That would be the tiny group which the Occupy Wall Street movement likes to label “the top-1%”. While ordinary Americans have faced substantial hardship as a direct consequence of those two invasions (and the $trillions squandered on Homeland Security), the top-1% were literally being showered with money – the even more infamous “Bush tax-cuts”.

Government apologists will argue that my analysis “can’t be right”, even though (real) statistics don’t lie (unlike the U.S. government). They will insist that even if there has been a cut-back in the level of government services that it can’t account for all of those $trillions spent on wars.

The apologists are actually partially correct. The suffering inflicted upon the American people by its own government to pay for its wars has not come entirely out of declining services. It has also come from cheating its senior citizens and its own employees in what it pays them.

As I note on a regular basis, lying about inflation is a deceit which pays endless “dividends” to governments – which explains why devious U.S. statisticians come up with new lies about inflation on a regular basis. It’s utterly simple to show how those lies end up cheating its seniors.

Social Security (and several other seniors benefits programs) supposedly have COLA clauses (“cost of living adjustments”). However, when the U.S. government lies and says that annual inflation is roughly 2%, while John Williams honestly calculates U.S. inflation at 10+%, then each and every year it is actually cutting benefits to seniors by approximately 8%. Now that’s “austerity”! It is yet more irony that the same senior citizens who most gleefully support the wars of the U.S. government (at the ballot box) are the segment of the U.S. population being most adversely affected by the “guns-not-butter” spending policies of the U.S. government.

It’s only slightly more difficult to illustrate how the U.S. government has also been “squeezing” its own workers – contrary to another even more popular mainstream myth that government workers are ridiculously over-paid. Regular readers will recognize the chart below, the one showing the greater-than-50% decline in the wages of the average U.S. worker over the past 40 years.

Government and media propagandists would have us believe that all through those 40 years that ordinary government workers have been getting fattened-up with year after year of large wage increases. Can anyone see any sign of those “wage increases” in the chart above?

Note that over these 40 years that the U.S.’s private sector Oligarchs have been relentlessly hacking-and-slashing employment while the government has been loading up on more workers (while not spending any more money in wages). This means the overall percentage of government workers in the workforce has never been higher.

Now here’s an IQ test for all the idiot-drones in the media. If average wages for all workers have been plummeting lower (by more than 50%) while government workers have been supposedly getting year after year of raises, then what are we to believe? Are private sector workers are now making less-than-zero wages (i.e. paying their employers for the privilege of being their slaves)?

Here’s Part II of the IQ test: if the U.S. government has been adding lots of workers in recent years, while real spending has been flat (despite two, hugely expensive wars), then where are the dollars for those mythical wage increases? You can’t pay more workers, more wages with less money. Any close examination of the data shows that as a matter of simple arithmetic that wages for U.S. government workers (in real dollars) are also steadily falling – not rising.

What has been the result of a decade of (secret) “austerity” for the American people? The same as Greece: the deficits have simply gotten larger and larger – topping out (at the moment) at roughly $1.5 trillion, or 10% GDP. Meanwhile, the U.S. debt-to-GDP ratio is now 100% as the $15 trillion national debt matches the (alleged) $15 trillion of U.S. GDP. Either one of those statistics comprise a full-fledged debt-crisis. Both together signify a level of insolvency at least as severe as any of the Euro debt-sinners.

Let’s summarize all of this media mythology about supposed government over-spending:

1) Spending on government social programs (in real dollars) has been steadily falling not rising.

2) Wages for government workers (in real dollars) have been falling not rising.

3) With our economies now already totally hollowed-out (from 40 years of “genocide” directed at the Middle Class), so-called “austerity” causes deficits to get larger, not smaller.

It is entirely regrettable that in analyzing our revenue crisis that is has been necessary for readers (and myself) to wade through four pages just to briefly dissect government and media lies about an alleged “spending crisis”. Again, don’t shoot the messenger.

A decade of extreme government/media brainwashing about a mythical spending-crisis requires a detailed rebuttal. Our governments are taxing too little, not spending too much. Government workers (like all other ordinary Western workers) are being squeezed by perpetually declining wages, not getting year after year of exorbitant increases - like the Oligarchs themselves. And “austerity” only increases deficits (and cripples economies).

When media drones tell us (again and again and again) that governments need to “cut spending” (even more), cut the wages of government workers (even more), and always keep inflicting ever more-punishing “austerity” on ordinary people they are not writing a prescription for economic health. Instead, as has been starkly illustrated by Greece (in the most economically brutal manner possible), the media mythology about our debt crisis is nothing but a certain recipe for economic suicide.

When a herd of lemmings stampedes off a cliff it is nothing but an accident of fate, as they arbitrarily chose the wrong direction. Not so with the lemmings of the mainstream media. Their ability to spot “cliffs” – and then charge full-speed in that direction – is a “gift” only equaled by our political leaders.

In Part II of this series I can finally begin to discuss the revenue crisis itself, and the real causes of the (real) crisis.

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Comments (17)Add Comment
Jeff Nielson
...
written by Jeff Nielson, April 26, 2012
You said it Dylan, any of this criticism of the current governments as proof of how publicly owned government doesn't work is moot because our governments aren't public. They aren't sovereign -- they are not owned by us. They are privately owned quasi-corporations (funded by taxpayers but owned by bond holders).

Austrian economics is just silly, this whole idea that government has no "productivity" whereas private enterprise does, and therefore government government spending should be minimized to the absolute bare minimum, just has no basis. Labour, or companies, or governments, all have zero productivity. They do not produce energy, they do not produce goods, all of those come from the natural world, not labour. This is why the foundations of Keynesian Economics are completely vacuous. All our economies produce is ideas, and entropy (disorder).

Clearly, economic "productivity" comes from the continuing transfer of energy and resources from the natural world to us. Those activities which promote a sustainable transfer of this wealth can be considered to be "productive". And to this end, government has a very important role to play because private ownership of everything would destroy the world pretty fast (indeed, that's what we're seeing).


Also good points Null!

I should have made time to clarify that our Big Government has gotten "big" hiring more and more drones to ADMINISTER an endless list of hand-outs to Big Business.

Clearly the "inefficient" part of government is not the part that provides education, health care, and other ESSENTIAL SERVICES. The "fat" that needs to be cut are the DRONES hired to HAND-OUT all this corporate welfare (and, of course, every DOLLAR of corporate welfare itself).
Null
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written by Null, April 25, 2012
You said it Dylan, any of this criticism of the current governments as proof of how publicly owned government doesn't work is moot because our governments aren't public. They aren't sovereign -- they are not owned by us. They are privately owned quasi-corporations (funded by taxpayers but owned by bond holders).

Austrian economics is just silly, this whole idea that government has no "productivity" whereas private enterprise does, and therefore government government spending should be minimized to the absolute bare minimum, just has no basis. Labour, or companies, or governments, all have zero productivity. They do not produce energy, they do not produce goods, all of those come from the natural world, not labour. This is why the foundations of Keynesian Economics are completely vacuous. All our economies produce is ideas, and entropy (disorder).

Clearly, economic "productivity" comes from the continuing transfer of energy and resources from the natural world to us. Those activities which promote a sustainable transfer of this wealth can be considered to be "productive". And to this end, government has a very important role to play because private ownership of everything would destroy the world pretty fast (indeed, that's what we're seeing).
Dylan
...
written by Dylan, April 25, 2012
It should be clear by now that in addition to central banks, ENTIRE GOVERNMENTS are privately owned. Oligarchs have the MONOPOLY ON GOVERNMENTS not the other way round.
This is no where better demonstrated than in the US of A run by Government Sachs.
Meanwhile we split nano-particles arguing which way we should get raped. And that`s the way they like it.
Jeff Nielson
...
written by Jeff Nielson, April 25, 2012


Anti-Austrians always seem to ignore the fact that the biggest monopoly of all is... GOVERNMENT! And, unlike private enterprise, it has the power to use force against you if you choose not to use its many "services."


MrP! That's a bit of a cheap-shot (and unlike you).

Note that I CLEARLY stated that the Austrians are BETTER than the Keynesians. So labeling me "anti-Austrian" is not only technically incorrect, it IMPLIES that I am a Keynesian - and THAT is definitely a cheap-shot (lol!).

Note also what I have demonstrated with this commentary: that spending on PEOPLE has been steadily shrinking in the U.S. So where has Big Government come from?

SERVICING THE OLIGARCHS!!

What has "grown" (like wild-fire) in the U.S. government over the past 20 years or so? SUBSIDIES for the large, corporate Oligarchs. And ADMINISTERING all of these hand-outs for the Oligarchs requires NEW servant-bureaucrats.

Finally, note that I have NEVER praised "big government". Rather, unlike the HYPOCRITICAL economists I simply note that you EITHER must hate both (equally) or praise both (equally). So once again, you're implication that I somehow SUPPORT big government did NOT come from anything I have written here.

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MrPaladin
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written by mrpaladin1, April 25, 2012
Anti-Austrians always seem to ignore the fact that the biggest monopoly of all is... GOVERNMENT! And, unlike private enterprise, it has the power to use force against you if you choose not to use its many "services."
Jeff Nielson
...
written by Jeff Nielson, April 25, 2012
The Austrians and the Keynesians are on the same team. Like the false right versus left paradigm. Two wings of the same bird.

The money spigot flows, mysteriously it finds its way into private, unregulated accounts but enough leaks out to sucker the chumps into believing they are on a roll. Everyone loves the Keynesians (good cop)
Inflation kicks into overdrive.

Then the hidden interest rate takes over and people start struggling to pay off their debts. The money spigot slows to a trickle. Mysteriously money still finds its way into private accounts, but nothing leaks out. The Austrians (bad cop) start telling everyone how it was all their own fault and to tighten their belts and stop whining, put up with their new tent because they brought it on themselves. Inflation is sterilised somewhat as long as the banksters keep their ill-gotten gains stashed away.


The bird will wet it`s beak no matter what. Mr Big is always on the right side of every thrust because thats the privelidge of being the buggerer as opposed to the buggeree.


Thanks for the comment Dylan! I LOVE the good cop/bad cop analogy. It never occurred to me before - and fits perfectly with the hollow semantics/rhetoric we hear from these frauds (on both sides).

"Big government" is evil, they tell us. Yet these economic charlatans NEVER have a harsh word for Big BUSINESS - despite the fact that their own textbooks tell us that the monopolies and oligopolies which have been able to run wild are THE "ultimate evil" in any capitalist system (and NOT "big government").

Are ALL these economists (on both sides) BLIND, or merely CORRUPT...?
Dylan
...
written by Dylan, April 24, 2012
The Austrians and the Keynesians are on the same team. Like the false right versus left paradigm. Two wings of the same bird.

The money spigot flows, mysteriously it finds its way into private, unregulated accounts but enough leaks out to sucker the chumps into believing they are on a roll. Everyone loves the Keynesians (good cop)
Inflation kicks into overdrive.

Then the hidden interest rate takes over and people start struggling to pay off their debts. The money spigot slows to a trickle. Mysteriously money still finds its way into private accounts, but nothing leaks out. The Austrians (bad cop) start telling everyone how it was all their own fault and to tighten their belts and stop whining, put up with their new tent because they brought it on themselves. Inflation is sterilised somewhat as long as the banksters keep their ill-gotten gains stashed away.


The bird will wet it`s beak no matter what. Mr Big is always on the right side of every thrust because thats the privelidge of being the buggerer as opposed to the buggeree.
Jeff Nielson
...
written by Jeff Nielson, April 24, 2012
My biggest point here is that TAX revenue is just a small part of the whole revenue picture.

The data in the videos isn't "fudged", it's taken directly from recent CAFR's that are easily found on the web. What is reported on balance sheets and made available to the public is what is fudged, because very few members of the public know about the CAFR's. For any given state, you can pull up the budget, and then compare it to the CAFR. You will soon see that the numbers are not the same.

When it comes to the falling dollar and reserve currency status, how much money the various governments pull in from investments is irrelevant. The Fed printing press will still have an inflationary effect. "Insolvency" claims are used to justify austerity, which is wealth extraction on steroids. Remember, this is organized crime, not government run on sound and honest business principles. The system has been captured. It will still collapse on itself, because the economy that supports it is being hollowed out.

Why to they keep crying "underfunded?" So we'll keep paying into the big wealth extraction machine. If there are $60 trillion in "unfunded" obligations, it's because they don't wish to part with everything they've acquired. Just because the government has the ability to pay all of its bills doesn't mean they're about to, not if they can continue to get us to pay for it.



Thanks for clarifying that for me DayOwl, as I misconstrued your point the first time.

Yes, CERTAINLY official tax revenues are NOT the only "revenue" source. For example, during the Bush regime it reported (over 8 years) more than $2 TRILLION in "off-balance sheet earnings".

By DEFINITION, every government activity is "official" and (supposedly) on behalf of the PUBLIC. This raises the question: how can ANY "honest" government have an "off-balance sheet" at all????

I looked at the Bush numbers in two ways. First of all, I noted that the "official deficits" for the 8 Bush years totaled just over $2 trillion while the ACTUAL INCREASE in U.S. debt was $4 TRILLION. So my initial suspicion was that all this "off-balance sheet" income was just fabrications - to HIDE the $2+ trillion in LIES from those 8 official deficits.

However SINCE that time I've become familiar with the CIA's THRIVING "drug business". And SUDDENLY it becomes EASY to see how the Bush regime could have generated $2 trillion in "off-balance sheet income" - once the CIA has their Afghan poppy fields growing again.

Ultimately the problem with this GIGANTIC accounting shell-game is we never know when we're being told half-truths and when we're being told TOTAL lies.
Are ANY of these numbers remotely close the truth, or are they all EQUALLY fabricated/exaggerated...?

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DayOwl
...
written by DayOwl, April 24, 2012
My biggest point here is that TAX revenue is just a small part of the whole revenue picture.

The data in the videos isn't "fudged", it's taken directly from recent CAFR's that are easily found on the web. What is reported on balance sheets and made available to the public is what is fudged, because very few members of the public know about the CAFR's. For any given state, you can pull up the budget, and then compare it to the CAFR. You will soon see that the numbers are not the same.

When it comes to the falling dollar and reserve currency status, how much money the various governments pull in from investments is irrelevant. The Fed printing press will still have an inflationary effect. "Insolvency" claims are used to justify austerity, which is wealth extraction on steroids. Remember, this is organized crime, not government run on sound and honest business principles. The system has been captured. It will still collapse on itself, because the economy that supports it is being hollowed out.

Why to they keep crying "underfunded?" So we'll keep paying into the big wealth extraction machine. If there are $60 trillion in "unfunded" obligations, it's because they don't wish to part with everything they've acquired. Just because the government has the ability to pay all of its bills doesn't mean they're about to, not if they can continue to get us to pay for it.
Jeff Nielson
...
written by Jeff Nielson, April 24, 2012
MrPaladin, I know where you're coming from here, so let's back up.

Yes, as things stand the U.S. is 100% insolvent. So, YES, it would be utterly foolish to try to "balance the budget" with massive tax increases. But that's NOT what I wrote. I simply have stated the obvious: this is a revenue crisis - not a spending crisis. The numbers are unequivocal.

As I've written BEFORE, solvency requires TWO THINGS: a massive debt-default across the West - since MOST of these debt-sinners are hopelessly insolvent - AND the implementation of a flat wealth tax to create a VIABLE tax base.

John Williams' calculations are ALSO unequivocal: there is NO COMBINATION of U.S. spending cuts which could EVER restore solvency to the U.S. Ron Paul's numbers DO NOT ADD UP - because there is no factoring of the "multiplier" effect of subtracting $TRILLIONS per year in economic activity.

A Ron Paul government would ALSO mean U.S. debt-default - but it would occur as it happened in Greece (as an involuntary collapse) rather than a conscious choice (i.e. a CONTROLLED default).

Lastly, the reverence toward Austrian economists is TOTALLY undeserved. The ONLY reason the Austrians don't ALSO look like elitist frauds is because they have the LUXURY of standing beside the Keynesians (LOL!!!).

Check out a recent interview I did precisely on this subject:

http://www.bullionbullscanada.com/bullion-bulls-community/videos/1925-ramblerboy368/video/467-Jeff+Nielson+Critiques+the+Austrian+Schoolwmv

http://www.bullionbullscanada.com/bullion-bulls-community/videos/1925-ramblerboy368/video/468-Jeff+Nielson+Critiques+the+Austrian+School+Part+IIwmv

(It was a two-parter as we went into "overtime" on this subject)
MrPaladin
...
written by MrPaladin, April 24, 2012
Sorry, can't agree with you on this one. Including social security and medicare, the US Govt has unfunded liabilities of $60 trillion. Future budget deficits are in the range of $1.5 trillion/year. If GAAP applied to the US Govt, it'd be in bankruptcy court. It's spending more than it takes in, and its debt can never be repaid. Using coercion to increase revenue is not a good solution; if taxes are increased to pay for government's misguided and wasteful programs, real (private) economic activity will lessen.

The way to end the problem is to follow Ron Paul's advice and terminate the many unconstitutional and worthless central-planning departments which exist to spend other people's money as they see fit. (See USSR for the end-game of central planning.) These agencies are populated with political cronies, incompetents and GSA-type drones who live at the expense of the productive class. Government spending is almost always wasteful spending; we need less, not more of it.

I suggest you check out the warnings of former United States Comptroller General David M. Walker. Also read "The Road to Serfdom" by Friedrich von Hayek, and other works of the Austrian economists.
Jeff Nielson
...
written by Jeff Nielson, April 24, 2012
I've heard many times in the past, though I don't remember the sources (which I read in the past) that income tax is not really part of the US Budget. Income tax is gathered from the IRS (a private corporation based in Puerto Rico) and is passed to the Fed (another private corporation based in Puerto Rico).

Rroush again I don't see a MOTIVE for such a ruse. What is gained by making the IRS some "off-shore corporation"? If ANYTHING it is OTHER parts of the U.S. government which are run as off-shore corporations - with my #1 candidate being the CIA.

When I looked over the "balance sheet" for the years of the Bush regime it reported over $2 TRILLION in "off-balance sheet gains" for the U.S. government over Bush's 8 years.

First of all, HOW can any GOVERNMENT even have an off-balance sheet ledger. By DEFINITION, everything that government does is both PUBLIC and OFFICIAL - meaning that in any LEGALLY RUN nation there could NEVER be an "off-balance sheet" at all.

You don't have to think too hard to figure out how/where the CIA could "earn" $2 trillion in "off-balance sheet" activities: its global drug-cartel.

Jeff Nielson
...
written by Jeff Nielson, April 24, 2012
DayOwl, I admit that I'm not entirely following your comment. However my first impression would be that this report is also full of fudged numbers.

The argument that the U.S. is "secretly wealthy" and only PRETENDING to be insolvent would seem to have no rational basis. WHY would the U.S. want the world to think it was much LESS solvent than it was - at EXACTLY the same time that the U.S. is threatened with LOSING its privilege of producing the world's "reserve currency".

Arguably, more than ANY other factor that privilege is responsible for U.S. prosperity. So to me this suggests that this report is just more smoke-and-mirrors - as all the OBJECTIVE data available suggests the U.S. is hopelessly insolvemnt, with a crippled and shrinking economy.
Earl
...
written by Earl, April 24, 2012
Day Owl,

Intriguing comment. My connection hasn't been were I can watch any of the "You Tube", but will continue to try.
Would you post on the forum for more visibility ?

Thank You
Earl
rroush
...
written by rroush, April 23, 2012
I've heard many times in the past, though I don't remember the sources (which I read in the past) that income tax is not really part of the US Budget. Income tax is gathered from the IRS (a private corporation based in Porto Rico) and is passed to the Fed (another private corporation based in Porto Rico).

Why is Porto Rico important to these two corporations? As a territory of the US Government it falls under different rules than the "States", and in fact, is one of the few areas that legally the US Government can make Laws.

The more you look into all aspects of the US Government, the more lies you find.
samix
...
written by samix, April 23, 2012
Good article Jeff, keep up the good work!
DayOwl
...
written by DayOwl, April 23, 2012
The budget data is just one small part of the revenue stream. Or to put it another way, the "budget data" a jaw-dropping, in-your-face lie.

The CAFR sources reveal that government agencies on all levels are hiding TRILLION$ in assets, accumulated over the years, which serve as the basis of support for most government activity. While zero interest rates and poorly performing stocks will have an impact, that is far different from the drop in tax revenue. It is estimated that investment revenue is at least double that of taxes, yet we are only told about the taxes part.

Hypothetical example:

State tax revenue: $1000

Investment revenue: $2500

Budget/Spending programs: $1500

Supposed "shortfall": $500
(to be made up in reduced services or tax/fee increases)

Real case: $2000 richer this year, but the fools don't know it.

All of this can be seen in the Comprehensive Annual Financial Report issued by every government agency, school district, water district, pension fund, etc. There are around 200,000 different entities, all worth Billions of dollars each.

The US Federal Government no longer makes them available to the public--which is illegal. No surprise there.

Government agencies LITERALLY own more than half of the US. It's all hidden in plain sight.

The fact is that taxes are just a small part of government revenue. They are just the icing on the cake. "Underfunded pensions" are a massive misrepresentation of the real state of affairs. They claim things are underfunded because the fund did not grow at the same rate as the year before, but often the pension fund will be in very good shape. What they want is to convince people to pay even higher taxes so they can amass more power.

This is not to say that government won't collapse when the economy does, because they are so closely connected to it. However, to look at taxes as the main revenue stream is to miss the forest for a few bushes.

Just when I thought I had an idea of the level of corruption, I find out I only knew one small part. It is just breathtaking to realize how much of our taxes go to investment funds instead of government services.

Check out The Great Pension Fund Hoax. It is exhaustively detailed, but well worth wading through.

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