March 27, 2006

Throwing fiscal responsibility to the wind, Congress just raised the national debt limit to almost $9 trillion. This is the fourth time they’ve raised the debt limit in the last five years.

On the same day, they also abandoned their own finance, budget, and other related committee responsibilities and approved Bush’s $2.8 trillion budget for fiscal 2007 continuing huge deficits on the road to financial disaster.

Deficits are the money borrowed to meet budgets and emergencies like war. Yet, these record deficits do not include the billions "borrowed" from Social Security and other entitlements, so the actual deficits are always greater than stated. Another discrepancy which, since it happens every year, cannot be written off as an oversight. Deficits are another understated falsehood.

All of this was done by republicans and democrats alike under the idea that debt is an inescapable consequence of “war” coupled with the need to provide “relief” for natural disasters like hurricane Katrina. It’s done as if there were no other alternative.

And that ladies and gentlemen brings us to the greatest financial lie in Washington, a lie that’s supported and given credence by most of the fiscal and news lapdogs in the nation.

In April of 2005, sixty-eight of us wrote an “Open Letter to the President and Honorable Members of Congress” providing them with a win-win solution that is still applicable today.

That solution lies in the fact that forty-two percent of our national debt is completely fraudulent, a scam that in the hierarchy of piracy puts Enron to shame and serves as an example to other scalawags. It’s composed of fictitious trusts and securities of value to no one but the government that uses them to tax and double tax Americans under the Greenspeak label of “Intragovernmental Holdings” (IH), what was once called “Government Debt” and now totals $3.5 trillion in debt.

There is no way in the world for a not-for-profit government solely dependent on tax revenue to incur debt in its own name. Such borrowing is always under the “full faith and credit” of the American taxpayer.

Without once more going into detail on the many elements of this fraud that are published in daily, monthly, and annual reports of the U.S. Treasury, the crucial thing to grasp is that this double dealing crime could be eliminated without harm to anyone but the pirates themselves. All it would take is a little honesty.

In brief, the government could eliminate $3.5 trillion of debt with the push of a delete key. But if they simply want to borrow more money, it would be easy to erase some of the fraudulent securities held in IH accounts at any time. It would be a small “future tax” sacrifice for the pirates, but a great favor to taxpayers. And perhaps most favorable to the pirates themselves since it would ingratiate them in the eyes of their foreign lenders by making the U.S. at least appear fiscally responsible by temporarily reducing our horrendous debt. One pretense washes another.

For example, let’s look at the Medicare trust fund currently endowed with $315 billion in “holdings” as of the end of February, 2006, and not mentioned in the hullabaloo of the recent prescription drug program. It’s certainly not the largest illegitimate “trust fund,” but it will serve as an example.

If $100 billion were needed for the invasion and occupation of Iraq, care of the thousands of wounded, or rebuilding the levees in New Orleans – all Congress or the administration would have to do is erase $100 billion from this fraudulent Medicare account and there would be that much room under the debt ceiling to borrow another hundred billion from China, Japan, or other nations still willing to loan us money.

Who would notice that the Medicare trust went from $315 billion to $215 billion in the blink of an eye, certainly not the media, the watchdogs, or the general public that seem blind to what’s been going on with these accounts?

If you can trick people into believing that the extra surplus money they paid towards Medicare’s portion of payroll taxes was merely “borrowed” or “invested” by the government and that the government is going to take care of this portion of the national debt – then you can certainly make them believe that the government is now using those stashed securities for a worthwhile purpose. Wouldn’t that be consistent? Wouldn’t it be a simple matter to “cash-in” (erase) some of these holdings? And there's the added bonus that it would temporarily reduce the national debt.

Do you think the pirates would ever do this? Of course not. They want to have their cake and eat it too.

About the only thing we poor serfs get are a few confessions that merely scratch the surface. We get dozens of authorities, even presidents, telling us that “cashing-in” these bogus bonds requires an increase in taxes or more borrowing that amounts to the same thing. The same position we would be in if there were no trust funds or bogus bonds at all. They say nothing about becoming honest and erasing them.

In a desperate attempt to push his Social Security reform idea for “private accounts,” we’ve even had President Bush holding some of the backup Parkersburg “paper” bonds in the air and calling them “worthless” and “meaningless.” He also repeatedly said that he “had a lot of explaining to do” but never got around to it.

Did anyone follow-up on this or press for an explanation? What does "press" mean to the presstitutes? Also, isn't it obvious to ask if there are any backup paper securities in the Parkersburg Bureau of "Public" Debt for the holdings of the other 136 trusts – backup papers that should be there only because Congress didn’t trust computer entries for the Social Security trust funds, their largest slush fund in IH now standing at $1.879 trillion and 22 percent of the national debt?

What’s going to happen if our foreign lenders find out about this scam before the American taxpaying public wakes up? Do you really think they’ll continue to loan us money if they recognize this swindle and that the individual Americans who must stand behind and redeem their loans have, for the first time since the Great Depression, a negative savings rate, are deeply in debt on their own credit cards, and cannot pay them back if they demand immediate repayment? Legitimate securities contracted under the open market side of the national debt can be cashed-in at any time and things like this cause runs on banks.

Would we go to war with our lenders over this issue? You bet we would. George W. Bush, the man with his finger on the nuclear button, is preparing for just such an event with mini-nukes and weapons in space alongside our already overwhelming arsenal of weapons of mass destruction. He’s already trying to build a case for attacking Iran primarily because they’ve threatened to sell their oil for Euros instead of Dollars, the same thing Saddam did.

With our dollar falling in value all over the world, a trade deficit of $804.9 billion for the last calendar year, a skyrocketing national debt, and most of the civilized world turning against us, all Osama Been Forgotten and his crew have to do is to run up their “mission accomplished” banners and sit back to watch us implode.

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The Real Deficit - Without Crooking The Books

The Morals of Buying Bonds

The Job Market - Is It Really Getting Better?

Going, Going, Gone - The Saga of Financial Responsibility

Special Bonds In "Special" Trusts

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New Debt Record - $76 Billion

Too Late For Corrective Action

Going Whole Hog In Just Four Days

Snow Thinks Citizens Are Stupid

Shackled, But Plunging Ahead Anyway

Debt Limit - We're Not There Yet

The Economy - What Does This Tell You?

Broke & Stalling - Now We're At The Debt Limit

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