August 08, 2005
But this increase in debt does not mean that all of it is a deficit. A sizable chunk of it is nothing but interest thats dumped into 151 trust fund accounts on the fraudulent Intragovernmental Holdings (IH) portion of the national debt, the side where entitlements like Social Security, Medicare, Military Retirement, and so forth, form more than 90 percent of these debt holdings and where it costs the government absolutely nothing to add this interest since they merely credit these black hole debt accounts with more obligations for you and your children to pay off.
As of Friday, July 29th, the national debt stands at $7.89 trillion which means we will hit the debt limit or self-imposed ceiling game of $8.18 trillion somewhere around the end of the calendar year when this ceiling will, with a few theatrical noises, be automatically increased once again and for the umpteenth time. Merry Christmas, Happy New Year, and another nice present for your children and grandchildren who will have no way in the world of paying off this obligation brought to you by a government that cannot live within its means, will not raise income taxes even when needed, and has little if any financial conscience. Why should they? The public servants responsible for this mess will be gone in a few years, retired in luxury.
It will also mean that the Bush administration will have borrowed $800 billion in 13 months since the last ceiling increase in November of 2004 and $2.2 trillion since taking office in January of 2001. Thats about a 40 percent increase in the national debt in five years.
After this fantastic markup, George Bush promises to cut deficits in half by the end of his presidency. Isnt that great? Wow, what a feat. The debt will only increase half as much each year after he has done such a wonderful job of putting us under the thumb of countries like China , Japan , India , and others.
And the loyal trickle-down borrowholics are ga-ga over the fact that this years deficit is going to be less than anticipated just a few months ago. The recent boost in income tax receipts means that we may have only about a $375 billion deficit in fiscal 2005, the tax cuts for the rich and famous are producing results, and Bush may be able to keep his promise of bringing deficits down to a mere $200 billion or so by 2008. The last year of Clinton s reign brought us an increase of $18 billion.
In the last forty years, the national debt has never gone down. How could it when the interest alone thats being dumped into the IH accounts amounts to so much. Social Security alone will produce at least $1.6 trillion in interest by 2018, the year everyone currently agrees will mean the end of surpluses produced by payroll tax overcharges. $87 billion is being dumped into the account this year alone, and thats not counting all of the other so-called trust funds that will get interest too.
And it costs the federal government nothing to add this public indebtedness. Even Thomas R. Saving, one of the public trustees of the Social Security and Medicare trust funds says; We can make that trust fund anything we want to. If we want to change the interest payments, which is a suggestion thats been made, change the rate of interest, make it 100 percent a year, we can make this last forever. There is no actual money involved in this annual interest increase.
Adding this interest is the most heinous part of the scam. Its bad enough that the Beltway Bandits steal our retirement, health care, and other entitlement surplus overpayments for invasions and pork, but adding interest merely to support the false idea that they only borrowed the money is the greatest crime of all.
In short, we would be better off if the pirates just stole the money and ran off to build their Empire, conduct invasions, and protect themselves behind a wall of false security.
And theyve just added another element of protection by electing Chris Cox to head the Security & Exchange Commission. While the rest of the country was involved with the question of John Boltons appointment to the United Nations, Sandra Day OConnors replacement on the Supreme Court, and other newsworthy items, Cox was appointed on Friday, July 29th, just before Congress adjourned for its vacation without a whimper from any of his fellow buckaneers. Oh well, the SEC never did anything to protect the American taxpayers from this scam anyway.
If you want to know the real deficit for this year, wait until the close of the fiscal year and subtract the annual interest dumped in IH accounts from the increase to the national debt. It will be close to a half trillion.
On the other hand, let's assume that the government's way of accounting for the deficit brings it in at $375 billion this year. From that point we can add the money they stole from Social Security alone which will be about $67 billion this year. Remember, they are the ones who claim to be "borrowing" this money, so why isn't it counted along with the rest of the money they borrowed legitimately?
That brings the amount to $442 billion without counting the rest of the money they "borrowed" from Medicare and other entitlements. The latter will bring us closer to the half trillion mark.
And what about the interest that they dump into the IH accounts? It may not be direct borrowing, but it certainly is tied to the amounts they've borrowed/stolen in the past and it adds to our indebtedness. Social Security's contribution alone is another $87 billion in interest this year. Where would that put us for a total deficit?
words, isn't the amount that the national debt increases every year our
real deficit, $593 billion last year and even more this year? God save
Editor's note: Increase income taxes "when needed?" The entire tax and borrowing structure of this government is immoral and unconstitutional to start with. There is no legitimate "need" to increase any taxes. There is a critical need to eliminate all unconstitutional spending - which would eliminate more than 90% of this immoral and bloated government.