A Declaration Of War Is Given

April 13, 2011

by Walter Burien

(Editor’s Note: The fact that Washington and most states refuse to even acknowledge the existence of the CAFR funds should tell you something…they don’t consider this YOUR MONEY. In my opinion, the only time the assets will come into play is AFTER the dollar collapses. Then, the value of those assets will only be pennies on the dollar. So, if Washington and the states COULD solve their financial problems by using the assets in their possession…and they don’t or won’t…what reason could you think up to explain their unwillingness?)

I have listened to many of the different media heads and ABC, CNN, CBS, NBC, PBS programs closely for the last three weeks as the so called “budget debates” takes place. The one issue that is as basic as it gets when it comes down to any budget discussion there has not been one mention of. In the absence of not a mention in all respects of that issue it makes the “budget discussions” a 100% complete charade.

Each and every one of us whether being in poverty or a billionaire when we discus our annual or monthly budget for home or business will discuss with our significant other or business partners two basic issues:

#1. Our normal operating expenses; planed expenses for any project we are working on or intend to implement; and any standing balances we plan on keeping as time passes.

#2. What our standing investments are that we have; account balances of all liquid cash; and our income we expect to get from all sources with all sources being our investment, salary, sales, and other sources.

In the “budget debates or discussions” we have been watching the issues presented that are saturating the air waves through the talking heads; news; and media programs almost exclusively, if not without exception, have only talked about; discussed; or presented the topic of #1 above.

In the real world of our personal and business lives this type of behavior and conduct excluding mention and serious discussions of #2 would never happen under any circumstances. On a business level in discussions with partners it would be considered fraud and an actionable offense for criminal malfeasance and removal of the partners responsible for such an omission. On a personal level the same would break up a marriage or close friendship.

Here we have the intentional participation of the syndicated media and the entire political body doing exactly the same with the omission of #2 and doing so: knowingly; willingly; and intentionally whether eagerly in planned participation (the majority) or out of fear of reprisal (the minority). I will add one meritorious exception of a house speaker Bruce Hana from the State of Oregon here:

Folks, the media and political charade taking place, it is all a masterful selective presentation designed to maintain the well entrenched void in public comprehension of the absolute basics of #2 and thus the obscene wealth and power derived staying intact and at the disposal of the inside players. Massive wealth that in this serious omission the public has been spoon feed all but mention of over the last six or seven decades as it grew and captured it all by investment whereby it gives the definition of actionable fraud of no equal by said intentional orchestrated omission.

If a complete accounting was presented to the public of #2 above held by both local and federal government, the world would then be established as being a much different place then we have been led to believe it is. The parallels that this revelation when and if shown and comprehended by all would equal I do not need to go into here, we all know what the true picture would present upon conclusion of disclosure being cognitively presented.

The War that is needed here with a barrage assault from all fronts on the media and political body is for immediate; clear; and in-depth; and open discussions to take place per #2 above. I emphasize that only liquid investment assets be addressed and NOT hard physical assets. All physical assets are to be held and ONLY liquid investment assets and the massive annual returns derived therefrom are to be looked at for reallocation for other use to resolve any “budget shortfall”.

My conservative estimate of standing domestic and “international” liquid investment holdings held by both federal and local governments collectively at this time is between 90 to 110 trillion dollars.

The immediate war and assault by email; letter; phone call; and protest rally barrage I request against the media and political body is that the issues of #2 be equally included in all discussions and presentations. The following are specific categories that are applicable to the discussions per any political local or federal body and are general categories that may exclude other holding accounts that may be needed for inclusion in the discussions when identified.

For the public to be played as total idiots with the exclusion of the massive wealth held in the #2 arena it is unacceptable under any terms of the rules of engagement of a country supposedly ruled by We The People:

1. What are the standing collective investment asset balances held both domestically and ” internationally” by general purpose government and enterprise authorities. Included should be the firms and management funds where held globally.

2. Identifying what specialty investment funds are held that are not included under the categories of general purpose government or enterprise authorities but are still held or overseen by the same.

3. Being that government keeps records of their standing investment assets and true gross income from all sources as depicted in their own Annual Financial Reports of which the names given to the same are: Comprehensive Annual Financial Report; Annual Financial Statement; or Annual Financial Report, that the clear mention of the same be made with the comment made that ” All residents of that City; County; State; or School District should carefully review their local government’s report of the same”. For federal it is called: Consolidated Financial Statements or Financial Report of the United States Government.

For local governments a Google search using quotes around the name of the report and then the name of the local government on the search line will bring up many. I note that there was an intentional void created in your thinking not to hear about these reports being that if you looked; learned; and comprehended what is shown therein the job of treating you as a complete idiot with the spiel you are intentionally spoon fed from the media and political bodies would not be such an easy job to do. And yes it is a job on their part DUE TO THE MONEY INVOLVED and the power / control it breeds within the back halls and behind the closed doors of government AND the media.

I make no light statement as to the importance of this request of War and assault as stated. Many may have a hard effort in comprehending what they are looking at in these reports BUT there are many that have the background in finance or business that will catch and comprehend what is shown. The ramifications of comprehending by even a small majority of We The People shall have the impact to turn the tide of events towards a direct and continued benefit for We The People and our futures.

I make special note of remedy upon the public learning and comprehending the scope of the wealth involved and held within government being my suggested application of the TRF for the inevitable elimination of all taxation: TaxRetirement.com A four point initiative linked on the front page shows the basics for turning that tide.

Circulate this request to all that you know and ask them to join the War. Compose your own letters and emails to the media and political players making it clear that further omission in the discussions of the basic issues of the liquid wealth as stated above you consider intentional fraud by omission in combination with their “selective presentation” crying broke and bankrupt utilizing the psychological tactic of fear mongering misdirection to extort more wealth from the people and that continuing to do so in perpetuating such fraud by omission and selective presentation may and could have severe, unexpected; and dire consequences.

Simple mention of the above starts the ball rolling. A fever pitch of mention can create a landslide of affirmative action for correction in the true behalf of We The People.

The intentionally maintained void in public comprehension must and needs to be filled at this time. There is no alternative that is acceptable. A declaration of War is given.

Sent for your information and your action, truly yours,

Walter J. Burien, Jr. – CAFR1.com
P. O. Box 2112
Saint Johns, AZ 85936

Utah Considers Return to Gold, Silver Coins

March 13, 2011

By Stephen Clark

(Editor’s Note: I say it here…it comes out there. I’ve been calling for some states to reclaim the power of the purse. And I said that the first thing to do, to begin getting their citizens used to paying for goods and services in gold and silver, is to begin requiring tax payments in gold and silver coin. Utah is the first to even consider it. Whether they do it or not remains to be seen.)

CLICK HERE to read the article.

Fully Taxated, Part I

March 11, 2011

by Tom Baugh

As February draws to a close, First Wife and I, as we do about this time each year, treated ourselves to the completion of our corporate and personal taxes. While each Diamond Slave struggled over a four-day death march to prove his woo to his Demanding Beloved in the worst economy in our lifetimes, she and I gathered our informational weapons to fight this latest round against the Ruling Class. About the only interest I have this time of year in the Diamond Slave trade is to wonder why, if a liberated lady is to be treated to a heart-shaped box of candy, a gentleman isn’t similarly entitled to a box of sweets fashioned after portions of his lady’s anatomy, analogous to each party’s amorous interest in the exchange. Perhaps they could just turn the boxes upside down. But, I digress.

As you know, I am firmly convinced that what passes today for civilization is headed for the cliffs. As Monkey Starvers, it is in our best interest to make sure we are headed for the nearest precipice as rapidly as possible, so that we might more quickly rebuild things for our children afterward. In our shared vision, it is the rebuilding that is the important thing. The inevitable collapse is merely a tool we may use to shape that end game: a world, or at least our local slices of it, freed from the complementary evils of socialism and corporatism.

A Monkey Starver prepares for this collapse by the following:

– Preparing his mind by learning those skills, too numerous to list here, which he will need afterward.
– Preparing his body by keeping practically fit and healthy and learning physical skills such as marksmanship, tactics and animal husbandry.
– Preparing his soul by discovering that there is such a thing as just retribution, and learning to discern his True Enemies. Even the Prince of Peace didn’t turn his cheek to these. And they tortured and killed him for it. So WWJD in our time?
– Preparing his environment by collecting those things which he might most need during the transition, while knowing that if displaced he can survive without them.
– Facilitating the above goals by thriving in the world as it exists today.

It is this last category within which tax skills lie. Many in the community disdain these skills as irrelevant post-collapse, and ignore them to their peril. They are absolutely right about the irrelevance of such concepts as deductions and amortization post-collapse, as accountants and tax professionals will be of hardly more use than as biofuel feedstock. But, our brothers are dead wrong about the importance of these skills right now as we prepare. Understand these issues and thrive, and you will have more with which to survive later. Otherwise, you will be less-prepared, shot as a banker’s tax resister, or worse, rotting in a banker’s prison cell somewhere having flouted their demonstrated power to demand your yearly tribute. At the very least, you will have your possessions seized and your ability to get more destroyed.

To thrive in any system, you must first recognize the reality of that system, and then act accordingly in order to manipulate its energy to your own purpose. We too often project our own individual decency and honesty onto the current system, and then delude ourselves into thinking that the actors within it are merely misguided, so thwarting its noble purpose. This is yet another dangerous fantasy, right up there with believing the military exists to ensure your liberty, which could get you killed as the wheels start to fall off and the Ruling Class begins to, more and more, express its true nature in its desperation to avoid that fatal (for them) cliff.

To this end, let’s briefly examine the true nature of the tax code, and why and how it performs that necessary function of getting the slaves to enslave both themselves and unwilling others.

First, accept the premise that our system was specifically designed to feed a class of certain very wealthy people. Without this acceptance, you will be continually herded this way and that, expending your righteous anger in fruitless ways. Accept this premise and the clouds will be lifted from your understanding, allowing you to perceive your True Enemies and be thus enabled to one day destroy them corporally and individually. Fail to accept this fact and you deserve your fate at the bottom of the cliff alongside them. Refuse to accept this fact, and I can’t help you, so crawl back into your cage and ready yourself to lick your master’s hand once again with humble servility.

Now that we are only talking to men ready to see reality and stand on their own feet to one day exact just retribution, let’s expand on this understanding. The tax code is designed to benefit the Ruling Class, and to reward and punish each of the various classes in our society, according to the value or risk which each poses to the slave traders. Your goal, as a Monkey Starver, is to be perceived by the tax code and its enforcers as a harmless noble servant of the Ruling Class, even as you sharpen your knives.

Let us now consider some of these valuable servant classes:

– The old-money rich. These benefit by the fact that most of their passive income activities, such as capital gains, interest and dividends, are treated differently than sweat-of-the-brow income. The Ruling Class occupy the upper levels of this class. Interestingly, the income tax was sold to the populace a hundred years ago to specifically tax these people while sparing the small fry. Promises, promises. More on this later, but chances are that if you are one of these guys, you aren’t reading this. A Monkey Starver can still use elements of this category for his own benefit, though.

– The new-money rich. These benefit, and are rewarded, by similar means as the old-money rich, but perform the additional service to the Ruling Class of operating businesses which keep individual minds enslaved to corporate grayness. Right-wing media personalities, such as Rush Limbaugh, exist to delude you into thinking that your economic fate is inextricably linked to the fate of this class, and that somehow protecting Bill Gates’ interests also protects yours. We are told that without this class we would not have jobs, when the rules that benefit this class actually prevent us from providing jobs for ourselves. Again, more later, but Monkey Starvers already know well this class.

– The pensioners. These perform the valuable service of voting in easily manipulated blocks, and provide a dilution effect on the electorate which keep the productive minority thinking they have a chance in our electoral hell. Otherwise, the productive might take to arms if they realized that voting will never make a difference. Monkey Starvers know better.

– The enforcers. These willingly enslaved, effectively prison trustees, have wed their minds to the interest of the Ruling Class, and look forward to one day enjoying fat pensions forged into chains for your children. Let’s provide them a different option, shall we?

– The barely sufficient. These show up at their menial jobs, then keep their minds empty and their mouths shut. In their own minds, they derive value from the corporate prisons out of proportion to the value they put in, and so think they are “getting over on the Man.” In reality, these act as corporate enforcers who transmit certain mental diseases, compliance and apathy, to their co-workers, diseases which then infect every aspect of their daily lives. Socialist or conservative makes very little difference among them; they all behave the same. And they’re all on the lookout for you and your slightest misstep or statement which might identify you as an enemy of their masters. As another easily manipulated enormous voting block, they perform another valuable service: they will never vote for anything which will actually help.

– The entitlement classes. These slaves, of all races, on the electoral plantation are paid to remain compliant, and like their corporate peasant brethren, imagine themselves getting over at your expense.

Notably missing from this list is the productive class which feeds all the others. If you are still reading this, then you are probably one of these. The tax code, and legal system, exists to keep you enslaved to all the rest. But you can learn to use this system to your own advantage. Keep reading.

From a collapse perspective, the lower rungs of these will starve in large numbers. Pity them not, each of them could have paid the price to prepare which you have. Some will band together in gangs which will have to be dealt with, while the evil resident among the upper levels, currently protected by the lower, will have to be hunted down individually and brought to justice after the illusion of law and order evaporates. Clearly, we will have a lot of work to do dealing with vermin.

The tax code rewards the upper levels by allowing them to keep more of what they haven’t earned by the sweat of your brow, while the lower levels are rewarded for their compliance and their willingness to keep you in your place. The former is attained by rewarding passive income, while the latter is attained by rebating that which had never been bated. As you become more adept at navigating through the tax code, you will see this pattern repeated again and again. Space does not permit me to explain in detail in these pages, but you will soon see what I mean.

Accepting this fact allows us to see through two illusions, the one favored by the right and the other favored by the left:

– Your interests and the interests of the rich are not the same, no matter how much you are fed stories of good-kid-made-good-maybe-one-day-you-too. Behind every success story you hear is a story of influence and connection. Every single one. Or just an out-and-out lie. If you think you’ve made it without influence and connection, you are either self-delusional or haven’t yet hit one of their snares. The tax code and injustice system do not allow you to succeed on your own merit; it will bleed you dry each step of the way. And at each transition on the way up, you will encounter wildly different rules which will punish you for your impertinence for trying to break through. These transition rules don’t affect the uppers since they started off already there. Those upper levels simply don’t want competition from you.

– The barely-sufficient and entitlement classes aren’t paid in an attempt to correct social injustice, as they themselves self-righteously imagine, but are instead paid to comply while keeping you in line along with them. Over the ages, the Ruling Class has learned to keep the arguably vertebrate comfortable enough to sell their children and grandchildren into bond slavery, or to patriotically fight their wars of resource conquest for them (hint: Afghanistan is rich in minerals). Otherwise, it might be possible for a certain swarthy gentleman of unlikely proportion and generally disagreeable disposition to rouse the rabble into the ultimate misfortune of the guilty parties. We have seen this pattern repeated in the past, and the Ruling Class would prefer this not happen on their particular watch. But I digress once again.

The most important weapon of the Ruling Class is government spending. Right or left, bombs purchased from the wealthy or brisket purchased for the poor, these make no difference whatsoever. Each fallacious side in a struggle which does not actually exist can whip up electoral frenzy to do either on a whim. They are all paid by bonds, backed by the government’s ability to force your children to live as a tax slave. Read “Bonds, What Bonds?” for more information about that, but for now accept the fact that government spending = bond sales = fat returns for the Ruling Class at your expense. For now.

The upper levels rely on bonds, and other passive income activities, and so these passive activities, bonds included among them, are treated more favorably by the tax code. The lower levels just get checks, and some in the middle get a few scraps of bonds in their retirement portfolios to keep their interests aligned toward our system of bond servitude. If you own even one bond right now, you’ve bought-in to slavery, too, no matter what you might say about liberty. Get rid of them now before your possession is used as evidence against you afterward. And when that market defaults, as it inevitably must, just after the upper levels exit, all of these people will clamor to be made whole by taking whatever the rest of us have left. When they do clamor, you will know who to count among your enemies.

Nowhere in any of this is the notion of productivity. Get it out of your head that productivity is the path to success, or even survival. After the collapse, this will certainly be true, but in the world in which we must all live right now, productivity, at least as an employee, is a sentence to lifetime servitude. Be productive, but for your own benefit and your own motivation, and in the right ways.

If you are an employee, no matter how productive you are, you will be barely rewarded for your efforts. Look around you. You might be ten times more productive and useful than the guy who gabs all day with the cute chick, but are you paid ten times as much? Of course not.

Those who make the big bucks don’t work for a living. Instead, they broker the efforts of those who do work for a living. And they enjoy huge tax benefits for doing so. Why? Because these are the prison wardens. They are politically reliable, and are more than happy to weed independent minds out and onto the streets. Drained of resources and employment, independent minds like yours pose little threat to the Ruling Class. Or learn to be compliant (even if feigned as a Monkey Starver) to survive. Which is why it is increasingly harder for you to run your own businesses: without the mark of employment compliance none may buy or sell.

This, then, is the clue you need for taxational success. From the perspective of the tax code, you must taxate your business life as an evil slave trader, while taxating your personal life as a hapless slave. In so doing you, quite legally, enjoy the benefits of both. Neither of these trigger the alarms which are set to find you out. Thinking that you can good-kid-make-good will just get you bled dry.

In the following portions of this article we will discuss the techniques by which we lead this dual (in reality triple) life, and give a few examples along the way.

In the meantime, while waiting to wade through the bodies at the bottom of those cliffs, keep your knives sharp.

Tom Baugh is the author of Starving the Monkeys: Fight Back Smarter. He is also a former Marine, patented inventor, entrepreneur, professional irritant and a homeschooling parent.

Our Choice: State Secession or Washington Debt Depression

January 22, 2011

by Ron Holland

Everyone with any intelligence in the US and around the world knows that there is no way for Washington to manage the tens of trillions in debt and unfunded liabilities short of ultimate repudiation or hyperinflation. Thanks to Wall Street bankers and the Anglo-American financial elite, our ruinous debt-financing Ponzi scheme has also been exported to most Western nations. These politicians have made a compact with the devil in delivering vote-buying programs and postponing the interest and debt reduction to future generations. Watch the cuts and subsequent riots in Greece, Ireland, the United Kingdom and you’ll see just a little of the future for the United States with its faltering world reserve currency status.

The question is, should the citizens and the formerly sovereign states of the United States wait for Washington’s foreign creditors to seize the remaining government and private assets left after our politicians have finished with us?

Our politicians are in the process of totally bankrupting the country, individual states and municipalities and in less than a decade will have confiscated most private wealth and placed tens of trillions of more debt on future generations. Should we act now before Congress and our politicians loot our personal, retirement and real estate wealth, destroy our Treasury obligations and kill the dollar and democratically take matters into our own hands before the looming dollar and debt crisis?

One alternative is for Americans in the individual states to organize and work toward a “Washington National Debt Constitutional Amendment” and repudiate much of the Washington government debt before it bankrupts every private American citizen. Otherwise, the massive increase in the level of indebtedness due to the meltdown and depression may first bring down the Treasury market followed by the US dollar and this will destroy the American economy for decades to come.

The American people need to meet the problem on terms which will make the best of a difficult situation for the nation and our personal financial security instead of allowing foreign creditors, our financial establishment and Washington to buy more time for them through the confiscation of our private wealth, financial security and liberty.

I believe only a grassroots effort by the American people through state-nullification efforts or the constitutional amendment process have any hope of success. The alternative is to expect those who are destroying our economy and nation to solve the problem they created without sacrificing us in the process. This is just wishful and foolish thinking.

On 12/21/1913 the New York Times stated “New York will be on a firmer basis of financial growth, and we shall soon see her the money centre of the world”, one day before the Federal Reserve Act was hurriedly passed and signed into law with limited debate by a Congress controlled by Washington and banking special interests. These undemocratic tactics were designed then – just as today with the bailouts – to thwart the will and overwhelming opposition of the American people to expensive handouts for Wall Street and those shadowy few who stand behind the banking system.

Now, Washington’s illegitimate national debt is growing exponentially due to the bailouts and stimulus bills as Congress tries to jumpstart a depression-threatened economy. This additional debt load will likely within the next decade bankrupt our nation and impoverish most productive, working Americans.

The Federal Reserve, together with the above financial elites, essentially manufactured the credit and real-estate bubble. The result: continued enhancement of foreign investment in their Treasury debt Ponzi scheme along with obscene profits for Wall Street at the expense of the American people.

This scam by our financial establishment makes Bernard Madoff’s despicable actions look like Mother Teresa’s charity operation in comparison. An unintentional consequence of these actions was the meltdown in markets, the credit crisis and spreading global depression when the bubble finally burst.

Now there is a cover-up of the cause and coming global run, crash and probable collapse of US Treasury obligations because of the dramatic increase in Washington’s national debt to unsustainable levels. This economic tidal wave threatens the financial security and wealth of every American along with their savings, real estate, retirement plans, investment portfolios as well as their promised Social Security and Medicare benefits.

Concerned Americans must bypass a corrupt Congress and the leadership of both political parties often controlled by special interests at the national level and seek a debt solution through the constitutional amendment and nullification process starting at the state level.

Repudiating the illegitimate national debt of Washington politicians and special interests will allow existing treasury debt obligation owners and investors time to dispose of the unlawful debt created only to profit special financial and corporate interests. They own and control majorities in the House and Senate, much of the party leadership positions and the Federal Reserve System. State legislatures must resolve that most of the national debt is not a legitimate debt of the American people nor of the future generations who would otherwise find their prosperity and financial security sacrificed for the profit of a few corrupt global financial elites.

It will be a mistake to waste our time or effort in another futile attempt to lobby Congress, the Courts, the President or the national party leadership of either party. Most have shown their willingness to sacrifice principle, integrity and our future in the recent bailouts and the legislation just passed during the Lame Duck session of Congress.

The proposed constitutional amendment must first call upon the state legislatures to ratify an amendment repealing Section 4 of the 14th Amendment which outlawed even questioning the validity of the national debt; “The validity of the public debt of the United States, authorized by law….shall not be questioned”, followed by language to further prohibit future indebtedness and deficit spending by the federal government and repudiate all federal government debt (except for obligations for Social Security Trust Funds) and debt and interest service obligations accrued after the 12/22/2013 deadline regardless of when the amendment is ratified by 2/3 of the states.

Thankfully, our Patriot Founding Fathers provided Article Five of the United States Constitution for a future time of congressional, judicial and presidential tyranny as we have seen for the last ten plus years. It provides for an option to assemble a national Convention to propose amendments to the United States Constitution as an alternative to the process of securing two-thirds approval in both houses of Congress.

Like the bailout actions and national debt increases today, Section 4 of the 14th Amendment was an unconstitutional act forced on the American people in a time of crisis just after the end of the War Between the States much like the questionable creation of the Federal Reserve and the Income Tax were enacted on the American people back in 1913.

The amendment was proposed on June 13, 1866 and later ratified on July 9, 1868 at a time when the legitimate voters of all the former Confederate States of America were disenfranchised and not allowed to vote and the states were under military occupation, reconstruction and control of the same special interests who started the war. In addition to making it illegal to question the validity of the public debt of the United States, it also unilaterally prohibited the payment of previous lawful debts incurred by the Confederate States of America or the individual state debts during the war.

Therefore we seek the right by constitutional amendment to lawfully question the validity and legality of a $60-plus trillion Washington national debt and unfunded liabilities forced on productive Americans without their consent. All of this by a Congress representing only special interests and not the will or best interests of the nation or the people of these United States.

We urge by constitutional amendment the repudiation of the unlawful debt service and repayment of principal based on an excessive level of taxation and confiscation of the private wealth, earnings and productivity of this and future generations of Americans accrued after December 22, 2013.

Yes, this may be a pipedream solution but I have heard nothing from the political establishment except empty promises. The time for talk is over. Either we take action soon or wait for China and other world creditors to act. They will not be working in our best interests.

Who will take this idea, hopefully improve it and lead a grassroots effort to save productive Americans from the harsh consequences of the Washington national debt?

Ron Holland is a contributing editor to the Swiss Mountain Vision Newsletter and Freedom Matters published by Appenzeller Business Press.

Happy New Year – You Are Screwed

January 1, 2011

17 National Debt Statistics Which Prove That We Have Sold Our Children And Grandchildren Into Perpetual Debt Slavery

At PoorRichardsBlog

(Editor’s Note: Secession ends debt slavery. The state that leaves the Union leaves behind ALL Federal tax liability for itself and its citizens. Could there be any more attractive reason to secede?)

What we have done to future generations over the past 30 years is absolutely criminal. 30 years ago the U.S. national debt was a bit under one trillion dollars, and at that time it was considered a huge national crisis. Today, the national debt is 14 times larger and the years ahead look absolutely apocalyptic at this point. We have literally sold our children and our grandchildren into perpetual debt slavery. We have accumulated the biggest mountain of debt in the history of the world, and our children and our grandchildren will be burdened with it for the rest of their lives.

All of our politicians keep talking about how it is vitally important that we do something about all of this debt “soon”, but they just can’t seem to stop wildly spending our money. They keep telling us that now is not the time for deficit reduction because it would harm “the economic recovery”, but the “right time” for deficit reduction never seems to come along.

The national debt statistics in this article are meant to shock you. Hopefully they will shock you enough to actually take action. Up to this point, the vast majority of Americans have been extremely apathetic about the horrific crime that we are committing against future generations.

How would you feel if you found out one day that your parents had run up a million dollars in debt that now you were obligated to pay off?

Would you be absolutely furious?

Of course you would be, and rightly so.

So how do you think future generations will feel about us? We were once the wealthiest nation on the planet, but we have taken that great inheritance and we have squandered it. Now we are handing our children and our grandchildren the largest debt the world has ever seen.

How in the world can we do that? How can we consign our descendants to perpetual debt slavery and still feel good about ourselves?

The America that we have all been enjoying so much today is going to be wiped out by all of this debt.

We have literally stolen the future. We just had to keep spending more and more and more and more.

The greed of this generation will be remembered for a very, very long time.

The truth is that both political parties are responsible. Both of them have voted over and over and over to keep running up these huge budget deficits. If you have voted for big spending Democrats at any point over the past 30 years then you have contributed to the problem. If you have voted for big spending Republicans at any point over the past 30 years then you have contributed to the problem.

Now we have reached a point where a horrific financial meltdown is basically inevitable. We are living in the greatest debt bubble in the history of the world, and it is only a matter of time until it bursts.

The following are 17 national debt statistics which prove that we have sold our children and our grandchildren into perpetual debt slavery….

#1 As of December 28th, the U.S. national debt was $13,877,230,355,933.00.
#2 If the federal government began right at this moment to repay the U.S. national debt at a rate of one dollar per second, it would take over 440,000 years to pay off the national debt.
#3 If the federal government began repaying the national debt at a rate of $10 million dollars a day it would take approximately 3,800 years to pay off the national debt.
#4 Today, the U.S. national debt is increasing by roughly 4 billion dollars every single day.
#5 The U.S. government is borrowing approximately 2.63 million more dollars every single minute.
#6 On September 30th, 1980 the U.S. national debt was 907 billion dollars. Just thirty years later, the U.S. national debt is over 14 times larger.
#7 According to a recent U.S. Treasury report to Congress, the U.S. national debt will reach 19.6 trillion dollars in 2015.
#8 It is being projected that the U.S. government will be paying 900 billion dollars just in interest on the national debt by the year 2019.
#9 A trillion $10 bills, if they were taped end to end, would wrap around the globe more than 380 times. That amount of money would still not be enough to pay off the U.S. national debt
#10 The U.S. Congress has raised the federal debt ceiling six times in just the past three years.
#11 The 111th Congress added more to the U.S. national debt than the first 100 U.S. Congresses combined.
#12 The 111th Congress got us into so much new debt that it breaks down to $10,429.64 for each of the 308,745,538 people counted by the 2010 U.S. census.
#13 The U.S. government currently has to borrow approximately 41 cents of every single dollar that it spends.
#14 When you break down the debt that the U.S. government owes to China alone it comes to over $10,000 for every single American family.
#15 If you were alive when Christ was born and you spent one million dollars every single day since that point, you still would not have spent one trillion dollars by now. Almost unbelievably, the U.S. government will accumulate well over a trillion dollars more debt in 2011.
#16 If right this moment you went out and started spending one dollar every single second, it would take you more than 31,000 years to spend one trillion dollars.
#17 The Congressional Budget Office is projecting that U.S. government debt held by the public will reach a staggering 716 percent of GDP by the year 2080.

But the American people don’t want to hear that we have spent decades creating a horrific debt crisis that is not going to be easy to fix. They just want someone to “tweak” a few things and get us back to being the greatest economy on earth. Unfortunately, it is simply not that easy.

But what do you tell a nation that is completely addicted to debt?

On an individual level, it can be a lot of fun to wildly run up credit card debt, but at some point you have to stop and start paying down that debt. Unfortunately, on a national level we can’t even get our politicians to slow down the rate at which our debt is increasing.

Sadly, the chart above does not tell the real story. It is based on fraudulent government accounting. If the government used GAAP accounting (like all public companies on Wall Street must), the numbers would look much worse.

John Williams of Shadowstats.com says that if the federal government would have used GAAP accounting standards to calculate the federal budget deficit for 2009, it would have been approximately 8.8 trillion dollars and that there is simply no way out of all this debt:

The government’s finances not only are out of control, but the actual deficit is not containable. Put into perspective, if the government were to raise taxes so as to seize 100% of all wages, salaries and corporate profits, it still would be showing an annual deficit using GAAP accounting on a consistent basis. In like manner, given current revenues, if it stopped spending every penny (including defense and homeland security) other than for Social Security and Medicare obligations, the government still would be showing an annual deficit. Further, the U.S. has no potential way to grow out of this shortfall.

The U.S. government is essentially bankrupt at this point. It is just a matter of playing out the hand. The rest of the world is starting to realize this, and confidence in the U.S. dollar is beginning to significantly decline.

Things did not have to turn out this way, but Americans did not listen to the warnings and so now this is where we are at as a nation.

The next time you see a small child, look into the hopeful eyes of that child and just think about what we have done to the future of all of our children. We have obliterated the financial future of this nation. Someone should be put into prison for all this. But instead the mainstream media treats prominent politicians from both political parties like rock stars.

The mainstream media continues to perpetuate the myth that the U.S. economy is on the road to a grand recovery and that eventually we can get a handle on all this debt and that somehow everything is going to be okay.

Well, everything is not going to be okay.

All that is on the horizon is great financial pain, and the sad thing is that it could have all been avoided.

But now the game is over and the day of reckoning is coming soon.

We are going to reap what we have sown.

(Editorial at theeconomiccollapseblog.com.)

Charity Should Stop Here

December 29, 2010

By Martin Hutchinson

(Editor’s Note: Tax deductions are one of the ways that government either rewards or punishes people for their behavior. In a state that secedes and becomes a new nation, we hope that the idiocy that is Washington’s criminal tax code would not exist. Charitable deductions are a part of that tax code and should not exist. DumpDC does not care a whit if charitable deductions “cost” the Treasury any money. Our only concern is individual liberty and property rights.)

At this season of goodwill, my thoughts immediately turn to that unsung hero Ebenezer Scrooge, and this year, in view of the subject’s topicality, to his possible thoughts on today’s major economic policy problem in the United States of tax reform and budget deficit reduction.

One thing immediately springs to mind: he would wish to eliminate the income tax deduction for charitable contributions. Old Ebenezer would in this case be magnificently right.

The tax deduction for charitable contributions was an early feature of the US income tax code, introduced in 1917 because of a concern that the wealthy would stop donating to higher education when hit by higher taxes for World War I. Since only the rich paid significant income tax at that time, the provision cost little and had little effect; in any case deductible charitable contributions were limited to 15% of the taxpayer’s income.

By World War II, income tax had been extended to most of the population and tax-deductible charitable contributions had become major income sources for many charities. Consequently when congress sought to introduce the standard contribution in 1944, to simplify the income tax system for most taxpayers by removing itemized deductions, charities fought the provision tooth and nail.

Today, up to 50% of a taxpayer’s income may be deducted as charitable contributions and the provision is budgeted to cost the revenue US$54 billion in the year to September 2011. In addition, charities’ investment income is exempt from tax, generating a “tax expenditure” estimated at $60 billion, charitable bequests’ exemption from estate tax costs an estimated $10 billion on the annual $24 billion of bequests, and other minor tax exemptions cost $6 billion.

In total, therefore, charitable tax exemptions cost the Treasury about $130 billion, or on the cuckoo 10-year accounting used in budget calculations, some $1.8 trillion over the period 2011-2020 – which would make a decent dent even in that decade’s horrendous budget deficits. In addition, state and local tax exemptions for charities cost $30-50 billion. The charitable contribution income tax deduction is very inefficient according to a 2009 Congressional Research Service (CRS) study of the sector; thus its $54 billion cost increases charitable donations by only about $27 billion.

The nonprofit sector (including religious and cultural institutions) represents a sizeable portion of the US economy. According to the CRS study, nearly 10% of the US workforce works in the non-profit sector, with 7% employed by charities. Non-profit employment increased by 16% between 1998 and 2005. Total charitable revenues were $1.4 trillion in 2008, about 10% of gross domestic product, while charitable assets totaled $2.6 trillion. Including other nonprofit associations, revenues totaled $2 trillion and assets $4.2 trillion.

Private contributions represented $144 billion, 12% of charitable income, government grants and payments totaled $351 billion, private payments for services represented $590 billion, investment income $81 billion and other income $30 billion. Private contributions were most important in arts and environmental charities, representing over 40% of funding for those sectors (albeit only $19 billion in total) while they represented only 2% for funding for healthcare charities, for example.

The differences in charitable giving between bottom and top-income brackets are striking. For example, 41% of charitable donations directed at the poor come from those earning less than $100,000 (almost none of whom itemize deductions), whereas only 14.6% come from the really rich, with incomes over $1 million. The really rich direct 21% of their charitable donations to the poor, directly or indirectly, compared with 30% for the population as a whole.

Employment in the charitable sector is highest in the District of Columbia, with 16.3% of its workforce employed in that sector, then Rhode Island with 13.6%, then New York with 13.3%. At the other end of the scale, Nevada has the lowest charitable employment, at 1.8%, followed by South Carolina, Louisiana and Mississippi, followed by Texas with 4.1% employed by the charitable sector. Colorado, California and Florida are all towards the low end of the scale.

Immediately one fact jumps out at you from this comparison: charitable employment is strongly inversely correlated with economic growth. While there is only a modest correlation between charitable activity and income (Rhode Island is close to the national median income per capita, below Louisiana and Texas) the jurisdictions that have shown the most robust economic growth in the last 30 years are those where charities are least active.

A little Public Choice Theory will tell you that the damaging effect on the local economy of a high concentration of charities is no illusion. The private sector involves resource allocation by those directly benefiting, while government is inefficient because it involves resource allocation by bureaucrats, who do not directly benefit from the outcome.

However, even governments are to some degree subject to popular control. In the case of charities, resource allocation is made by people with a political agenda, seeking to maximize their resource collection from rich people with little knowledge of the problems the charity addresses, whose decision making is obfuscated by incessant misleading charity propaganda. Thus, charitable activity is even more economically inefficient than government, and excessive charitable activity holds back the local economy by diverting resources from the local private sector.

Turning to charities’ internal efficiency, Forbes’ annual study of the top 200 charities for 2010 reported an average of 90% fundraising efficiency and 86% charitable commitment – in other words, for each $1 of donations to the charity 77 cents went to its charitable purpose. Thus, by combining the three ratios above, of the efficiency of the charitable tax deduction, of the percentage of charitable donations that the rich give to the poor and of the efficiency of the charities themselves, you can discover that the $54 billion cost of the charitable contribution income tax deduction results in only about $4.4 billion of benefit to the poor. Not the most efficient use of public money.

Charities are absorbing an ever-higher share of national output. Real charitable revenue increased by 68% in 1995-2005 and charitable donations increased by 68% compared with a 39% increase in real GDP. Apart from charities’ adverse effect on the economy itself, there are a number of reasons why this could be a bad thing:
# The innumerable scams in charitable donations of automobiles and other property;
# The ability of Wall Street hotshots to leverage their social life through “charitable dinners” and other charitable events, a substantial portion of the costs of which are borne by much poorer taxpayers;
# The raucous propaganda and lobbying activities, almost universally in favor of bad public policy, by the charities themselves;
# The uncounted “hedonic” cost to the public as a whole of being subjected to continuous obnoxious fundraising.

Given charities’ averse effect on the economy, their own economic
inefficiency, the great inefficiency of the charitable tax deduction and the disinclination of the very rich to give charitable donations to the poor, it is clear that the charitable deduction should be ended, as should the tax exemption for charities’ income, the tax exemption on their real estate and their other benefits from the public purse. Since excessive charitable activity is economically damaging, such activity should no longer be subsidized by the remainder of the economy.

A major additional benefit of abolishing charitable tax benefits would arise in the management of universities and hospitals. These are basically commercial enterprises that choose non-profit status because of its tax breaks. The removal of the tax breaks should cause most of them to run themselves as profit-seeking businesses, chopping away much of the vast unproductive bureaucracy that they have accreted over the last half century.

Their current non-profit approach, putting political correctness and other shadowy social goals above the efficiency of the enterprise and its benefits to consumers, has wrecked US higher education and caused its healthcare costs to soar uncontrollably. A little free-market sunlight would immeasurably improve them.

While most of the $130 billion saved from eliminating charity tax breaks should go to reducing the excessive federal deficit, some small portion, maybe $20 billion, could be devoted to direct charitable donations by the federal government. If half of that, $10 billion, went directly to the poor it would exceed the $4.4 billion of donations to the poor generated by the charitable income tax deduction. The remaining $10 billion might be wasted, but being public money it would be wasted by representatives of all of us, selected in a democratic manner, and not wasted to subsidize the whims of vulgar plutocrats.

When some leftist billionaire like Warren Buffett calls for higher taxes, or advocates the retention of the estate tax, my blood boils. However worthy the Bill and Melinda Gates Foundation, if as he plans Buffett leaves it a legacy of some $30 billion his estate will pay no estate tax on that amount. That will deprive the Treasury of about $12 billion in revenue, which must be made up by the rest of us, who lack Buffett’s means.

It’s time this subsidization of billionaire social consciences is brought to an end and charities put on the same footing as the rest of humanity. Such a change should boost the US economy, increasing ordinary Americans’ incomes – out of which increase they can, if they wish, make an after-tax contribution to charity, preferably one that benefits the truly disadvantaged.

Ebenezer Scrooge, the true Spirit of Christmas, would rejoice in such a change.

Martin Hutchinson is the author of Great Conservatives Academica Press, 2005). Details can be found at http://www.greatconservatives.com.

(Copyright 2005-10 David W Tice & Associates.)

The Day Of Reckoning

December 24, 2010

The CBS info-tainment program “60 Minutes” ran a piece last Sunday entitled “The Day of Reckoning.” The subject of the segment was the imminent and unavoidable default by as many as 100 American municipalities that is expected in 2011.

100 municipalities in default. 100 governments declaring bankruptcy. 100 governmental entities that cannot continue operating. These could be states…counties…cities. The segment featured Illinois and New Jersey among others.

60 Minutes has been a reliable propaganda outlet for government over the last 40 years. So, if they ran this piece on national television, the chances are pretty good that the situation is much worse than shown.

If you have been a regular visitor to DumpDC.com, you’ve seen article after article telling you the various ways that the American economy will meltdown. One of the ways we’ve showcased is the amount of foreign debt that Washington has sold globally, and that DC cannot pay. But here is yet another source of disaster that cannot be avoided, and this source is here on our own shores. This source…municipal debt defaults…WILL happen in the coming 12-24 months.

Think about this situation. What do you think will happen in the bond markets when one state, or big city, or big county…defaults on their municipal bonds? What will the bondholders do before the default…that is, if they know about the coming default? What would YOU do if you were holding an IOU from a friend, and you knew that the friend was going broke? Would you take pennies on the dollar from your friend as settlement of the IOU? Would you try to sell the IOU to some other fool without telling him that your friend was going broke? Or, would just wait until your friend was broke, and his IOU became worthless, and you got nothing in repayment of the debt?

Those are some of the decisions boldholders will be forced to make in the coming months. Further complicating their decisions is that other bondholders can and will make the wrong decisions that will affect everyone’s holdings.

Many bondholders are big pension funds, insurance companies, mutual funds, banks….all the institutional investors out there that used to look to municipal bonds as safe havens for wealth preservation. But there are also millions of individuals holding municipal bonds in their private portfolios for the same reasons. Bond defaults will mean that interest income ceases. So the big investors lose their arses and the individuals do too. But remember…the big losses could affect the entire bond market. It could even cause it to collapse. And the collapse of the domestic municipal bond market because of these government defaults can easily collapse the entire economy.

The municipalities will look to Washington for help. Washington only has a couple choices here. (1) It can print more money and bail out the municipalities to the tune of $1 TRILLION dollars. Or (2) it can tell them that they are on their own. Printing more money will hasten the hyperinflation already on the horizon. Choice #2 is the wise choice, but when in the last 150 years has Washington done anything wise?

Ladies and Gentlemen, please remember that even states that might secede…like Texas…are likely facing these grave bond defaults. So does anybody get out of this scenario unscathed?

Answer: Only the states that have not been mismanaged. I do not know if such a state exists in the USA.

Take the time to view this video with your children.

The Day Of Reckoning

Secession is the hope for mankind. Who will be first?

DumpDC. Six Letters That Can Change History.

© Copyright 2010, Russell D. Longcore. Permission to reprint in whole or in part is gladly granted, provided full credit is given.