New Media for Alaska's Patriotic Voices
This is an editorial that first appeared in the Gas for Alaskans News Letter. More information on the subject is available at CAFR1.com.
Public and Private Finances
by Bob Pratt
GFA - Kenai Peninsula
I have always prided myself on putting a little money away each month. By the time I was 30, I was able to begin investing my meager nest egg. I bought stocks and bonds and insurance policies like so many other young men. I kept on trucking, year after year, nose to the grindstone, back to the wall, with my focus on my young and growing family, my beautiful and talented wife, and all the small private dreams we shared.
In other words, I was a typical American male in every way right up to my retirement.
I started thinking about the government as if it might be something that concerned me when the National Debt reached $10 trillion dollars. (I don't know why I didn't get excited when it reached $1 trillion, but the truth is that I was in Guatemala at the time and depending on the rest of you to get excited for me.)
Since then I have come to realize that the government's finances are exactly like my own. They have a budget, savings accounts, investments, and insurance policies completely analogous to my own, and, just like me, most of their total income now comes from investments and enterprises.
That being so, why is the conversation always and only about "The Budget" and not about the total income of government? What we should be looking at each year along with amounts budgeted, is the total amount of money coming in as income from government investments and enterprises, fees, and taxes. I can guarantee that this sort of analysis does go on in each unit of government, just as it takes place over my kitchen table, yet total public sector income is never openly discussed with the public. We are being treated as children, given our allowance, and otherwise kept in the dark about public sector finances, a situation that breeds corruption like mosquitoes in muskegs.
We are being told, "Just trust us....we're the government!" For some reason I can no longer grasp, we've been accepting that answer since 1946. We haven't demanded a tallying up of gross yearly income from the public sector in America since 1945. I was four years old and don't remember the results, but after seven decades, don't you think it's time we looked at total government income and the net worth of the public sector in America?
I raise the issue, because it looks to me like the Federal government has run up a $15 trillion dollar debt, refused to pay it, and left us on the hook for it by claiming that we are all second-class "US citizens" and therefore made liable to pay their debts. That's the report I hear coming back on short wave radio from both China and Russia. These other countries are righteously upset with this behavior on the part of our government. They say its grossly irresponsible and corrupt. No other major modern government in the world uses its own citizens as human chattels to back their debts.
I am inclined to agree with China and Russia on this. There's no excuse for a $15 trillion dollar National Debt and no excuse for the existence of two "classes" of American, those who are free, and those who are "US citizens" and therefore, debt slaves.
China and Japan announced this week that they are going to bypass the US dollar, or what passes for a US dollar---Federal Reserve Notes, and begin trading directly in their own national currencies. They were very polite, even apologetic, no doubt hoping that nuclear war will be avoided, but that looks suspiciously like writing on a wall. The writing says that because of profligate corruption on the part of the Federal government, the United States will soon lose its Reserve Currency status and be sent crashing to the floor like a drunk who can no longer even stagger.
Maybe it's a good thing. Maybe the abject suffering will reawaken our common sense. Maybe we'll demand to see the public sector books and start dealing with the problem. I can guarantee that if I ran up the equivalent of a $15 trillion dollar personal debt, my wife would divorce me, and I'd go bankrupt.
That is my honest estimate of where we all are in our relationship with the Federal government: divorce and bankruptcy, not necessarily in that order. Getting a handle on the real income and legitimate assets of the public sector in America is the place to start, because between you and me, its the public sector income that goes to pay public sector debts and its public sector assets that go on the auction block before my Subaru or my wife get shipped off to Hung Zou.
For those of you who are scared silly by the prospect of Uncle Sam sleeping in a stairwell, be of good cheer. Uncle Sam royally deserves that treatment and worse. The "US government" is nothing more or less than a corporation that went bad. All that it can legitimately claim as assets are the Territories and the District of Columbia and our military bases and customs houses and a few other things like that, which we will get first dibs on in International Bankruptcy Court. I will be sorry to say good-bye to Guam, but it beats surrendering California.
We deserve better. We deserve a chance to rebuild our industries, make use of our own resources, and earn our way back to a place of respect in the world. We deserve our rights and freedoms fully restored, our peace and our prosperity, too. We deserve a New Start, not just a New Deal.
Please see the following short snippet from my friend, Walter Burien:
Per understanding CAFRs (Comprehensive Annual Financial Reports), people have been intentionally kept in the dark so long they forget the basics:
1. A "Budget Report" is a selective funding of x accounts from x resources (set up to be primarily funded with taxation and done so "for the year")
2. An "Annual Financial Report" is the showing of "all" income: Investment; taxation; and Enterprise, plus the "accumulated wealth over decades. Budgets are for the year, an AFR is for it all since creation of the entity.
There is a big difference between the two. A correct analogy would be: The budget to operate your house vs. your statement of net worth.
The public has been played with the biggest shell game of selective presentation there is allowing for massive fortunes to be made by the inside players over the last several decades..
Every investment fund large and small is a power base. Where that money is invested determines what company; real-estate venture, etc., is made or broken. Thus in line with that, never a mention of the 184,000 AFRs of the corresponding local governments..nor the many thousands of specialty investment funds they contain. I note gov pension funds facilitate the same. Paying employee benefits from the return on the funds is an after thought for the government players.
The head communists back in the 30's and 40's said they could take over America without firming a shot. The undercurrents of that statement were that they could depend on the greed and opportunity of the players to accomplish that goal and it did. US Collective government since 2000 brings in more gross income than the entire gross income of the population of the United States.
Taxation is rammed down the public's throat (1/3rd of the gross income) and Investment / Enterprise income (2/3rd of the gross income) the "silence is golden" rule is strictly enforced with the full symbiotic cooperation of the syndicated media; controlled education; and both political parties as applies over the last century.