by Stephen Wellman
September 26, 2009
This is for the week of September 21, 2009. As an American, do you know where your DEBT is? If not, then click HERE …
HERE are our choices as American citizens!
ASK WHY HERE and then ASK WHY HERE …
FROM THE UK
HERE we get a glimpse into the past thanks to this British TV show, as the UK is dealing with the same political issues as we are in America, namely the career politicians and the domination of the two party systems over the past 100 years. Hear is how Henry VIII dealt with the failure of politicians in his time. As the British TV host says, “In one word – Constitutional reforms”!
Who is to say this was all “expected” HERE?
ONLY THREE (3) WORK DAYS LEFT BEFORE FY 2010 BEGINS …
The countdown to a 100% OBAMA TREASURY with 100% OBAMA BUDGETS!
US TREASURY DAILY STATEMENT
September 18, 2009 – A big chunk of cash, some $3.5BIL USD went to the Defense Vendors today, bringing the FY 2009 total to near $370BIL USD. That is only for “Vendors” and does not include other military costs for overhead for global bases and payroll costs.
As reported 09/18/2009
If I go back to the first year the US military invaded Iraq, the year of SHOCK AND AWE, which was a huge military operation with non-stop ground combat linked with non-stop fighter jet air strikes I see that the same line item was only at $197BIL on the same day, September 18th, some $173BIL USD less was spent in 2003 versus now in 2009.
As reported 09/182003
What is causing this increased spending on Defense Vendors? Is Obama and his military advisors simply buying more equipment than the Iraq invasion to replenish the worn out equipment after some six years of fighting in Iraq and Afghanistan or is there a military build-up in the works for some threats that have yet to be disclosed? A little transparency here would be nice since Obama did promise to wind down foreign military operations when he was running for President.
US Federal Employee Salaries line item went up nearly $3BIL USD today …
As proof of how the US government has grown I took a look back at 2003 Federal Salaries during the Iraq War invasion and I see as of September 18, 2003 the US government only had spent $121.2BIL USD, that’s is about $51BIL USD less, so that means the US government payroll has expanded by 42%, growing at a rate of 7% per year. Too bad our GDP isn’t doing that well …
Some entity took $16MIL USD from the TARP funds today. Not sure who it was, so that puts the total for FY 2009 at $364BIL USD, almost as much as the US Treasury spends on Defense.
Food stamps … I am not sure why the US Treasury spends less on food stamps in 2009, during the greatest recession since 1930 but they do, a lot less. Is this a real recession or just a hoax so banks can get bailed out?
As reported 09/18/2009
As reported 09/18/2003
So in 2003 the US Treasury spent over $15BIL USD more on food stamps than now in 2009. That is a 350% cut in food stamps since 2003. Its not logical based on the economic reporting I see today.
September 21, 2009 – Another $2.4BIL USD spent on Defense Vendors today. What sort of military build-up is going on?
The Deposit Insurance Fund (DIF) added almost another $1BIL USD today. FDIC has been very busy covering a lot of deposits lately.
The US Treasury issued $180BIL USD in Government Account Series IOU securities today just crossing the $44TRIL USD mark.
Today receipts exceeded outlays by $4.8BIL USD, but for the month and year outlays have exceeded receipts.
September 22, 2009 – The “Defense Vendor” line item is on a roll this week, up another $2.4BIL today, three days in a row over $2.3BIL USD.
Lockheed Martin (LMT: NYSE) and General Dynamics (GD: NYSE) are living the good life in this recession.
The Government Account Series is busy this week as well, another $184.3BIL USD.
Here is a problem … According to the “deposits” under TABLE II the tax deposits for today are $9.6BIL USD, but look at TABLE III, there is no such breakdown.
In fact the total Federal Tax Deposits (FTD) for the day only show $2BILS USD. So Taxes Not Withheld would include retirees and self employed who pay quarterly. Why would that line item not appear under TABLE IV? I see some $342.8BIL USD for FY 2009 so far. If we add that to “Withheld” tax deposits the total for FY 2009 goes up to $2.3TRIL USD, but if we back out “Refunds”(see TABLE VI) the total NET TAX DEPOSITS for FY 2009 are less at $1.864TRIL USD.
I would have to ask the US Treasury and the GAO why there is no line item under TABLE IV-Federal Tax Deposits (FTD) for tax revenue that is “Not Withheld”? That’s a flaw as at the end of every quarter those funds come into the US Treasury accounts. It should be a permanent line item under TABLE IV.
September 23, 2009 – Let’s see if Defense Vendors get more today again. YEP, Cha-Ching another $2BIL USD …
That means over the past four days Defense Vendors have racked up $9.2BIL USD for their military equipment, $2.35BIL USD per day of outlays.
Here come the “Three Horsemen”, Social Security, Medicare and Medicaid racking up over $10BIL USD in outlays today. Each week they have a $10BIL plus day!
TOTALS ……………………………. ……… 10,255 97,079 1,276,186
Okay, $1.276TRIL USD spent on these three line item, “entitlements”. Imagine what America would look like if there were no Social Security or Medicare or Medicaid. Isn’t this just RIOT INSURANCE so the two party political system stays in power longer? Or is this really a kind and caring government? Either way you look at it the US government is confiscating our income to pay for these entitlements as they “borrow” from those same Trust Funds, leaving A Government Account Series security (IOU) in exchange. What if there were no solvent Public Trust Funds left to borrow from? Then what?
Look here … TARP got $126MIL USD repaid today … Who paid? AIG?
Unemployment Benefits outlays are up over $114BIL USD so far for FY 2009.
That’s over 220% more outlays for the unemployed in 2009 than at the last high in 2002 of $50.8BIL USD on the same calendar day.
As reported on 09/23/2008
And over 270% more paid out to the unemployed since the same day in 2008. No, I would say unemployment is not improving and that translates to less tax revenues at all government levels, Federal, State, County and City … All government in America will have to seek new revenue sources and milk the ones they have now. I wonder when sales tax and property tax percentages will start to increase.
Here is one new tax being proposed a TRADER TAX for those who trade on stock exchanges in the USA. HERE is a link to a petition to stop HR 1068, the TRADER TAX BILL. I urge you to sign the petition. The first paragraph spells it out …
On Friday, February 13, your colleague, U.S. Congressman Peter DeFazio, introduced H.R. 1068: “Let Wall Street Pay for Wall Street’s Bailout Act of 2009″, which aims to impose a 0.25% transaction tax on the “sale and purchase of financial instruments such as stock, options, and futures.”
Could there be anything more stupid? Since when has Wall Street ever paid for any bailout? Wall Street will just pass this charge onto US investors along with their commissions for executing trades. DUH! In essence this HR 1068 is just another tax on the US Taxpayers more than it is on Wall Street. It’s a tax against your retirement funds. Then when you sell a position and make a gain you have to pay Capital Gains taxes and might I remind you the US Treasury, IRS tax code has a Capital Gains Tax increase proposed to start in 2011 which will raise capital gains taxes in some categories as high as 100% higher than their present rates. It will also add in another bracket level of five years or less, instead of the two current levels of one year or less (short term capital gain) and over one year (long term capital gain). No we do not need more taxes. As you know this BILL will start at a 0.25% tax, which does not seem like much now, but I guarantee you that tax rate will only increase over time. Besides it will force traders to consider trading foreign exchanges more where such taxes do not exist. I urge all my readers to sign the petition!
Here are the DEBT ISSUES for the same calendar day in 2008.
Now let me post the DEBT ISSUES for this same day, September 23, 2009.
So compared to 2008, a 100% George Bush FY 2008, there has been a $1.12TRIL USD increase in DEBT ISSUES by the US Treasury in both marketable US Treasuries and non-marketable Government Account Series IOUs.
Now let’s see what this same data points looked like in 2003 the year of SHOCK AND AWE, the invasion of Iraq.
Well, half the DEBT ISSUED in 2009. As I have shown the US government has grown its Federal Employee payroll line item but this shows the US Treasury is growing DEBT ISSUES at a much faster rate. In fact DEBT ISSUES have increased at a 215% rate or 36% per year. If only our GDP was growing that fast!
September 24, 2009 – According to what I have exposed on DEBT ISSUES the US government is in the process of consigning each and every one of us to DEBTORS PRISON, whether we have any personal debt or not. Even if you have no mortgage or debt you still must pay taxes and taxes grow because spending and debt grows. Every American citizen is therefore in huge debt.
Speaking of DEBT ISSUES, look what happened today … Another $107BIL USD on US Treasury Regular Series Bills (short term debt of one year or less).
Oh look another $186BIL USD in more Government Account Series IOUs. All total nearly $300BIL USD of DEBT ISSUES for the day.
Look at the Defense Vendors again racking up another $1.8BIL USD for the day.
That brings the weekly total for Defense Vendors over $10BIL USD. Buy LMT!
Oh, look here. No wonder the SEC is under staffed …
What can they do with a paltry $1.3BIL USD per year? Actions speak louder than words, so obviously not much interest at the US Treasury for “regulating markets”!
Now look at this … See that very small NOTE #2, right in front of “Closing Balance Today” amount of $7,460,693? It is very small …
Here is what that tiny little NOTE #2 says at the bottom in very small font.
What is this “temporary” program that needs cash?
HERE it is …
September 17, 2008 HP-1144
Treasury Announces Supplementary Financing Program
Washington- The Federal Reserve has announced a series of lending and liquidity initiatives during the past several quarters intended to address heightened liquidity pressures in the financial market, including enhancing its liquidity facilities this week. To manage the balance sheet impact of these efforts, the Federal Reserve has taken a number of actions, including redeeming and selling securities from the System Open Market Account portfolio.
The Treasury Department announced today the initiation of a temporary Supplementary Financing Program at the request of the Federal Reserve. The program will consist of a series of Treasury bills, apart from Treasury’s current borrowing program, which will provide cash for use in the Federal Reserve initiatives.
Now this “temporary program is over a year old and $165BIL USD in debt! This is illegal … Why must US Taxpayers be the counterparty for the US FED now, which is a private banking consortium made up of other private banks. WE THE PEOPLE are making loans to the US Federal Reserve. Where is that in the US Constitution or the US Federal Reserve Charter? This was sneaky and under the radar as I doubt few will recall Hank Paulson or the US Congress authorizing this. Where was the media? So we may as well add another $165BIL USD to the TARP and add the US Federal Reserve to the list of insolvent banks being bailed out by the US Taxpayer. Where are the S&P and MOODYS on this credit rating issue?
THE EMPIRE THING
As you have seen I have pointed out that Defense Vendors made out very well this week and for FY 2009.
The cost to be WORLD POLICE is extremely high both in human terms and financial terms. The USA has borne the brunt of Empire for many, many decades now and in some way the unofficial “pay-off” has been the World Reserve Currency. Yet Empire never survives and when you compare the American Empire to the British or Roman Empire our Empire has been relatively short lived, especially since Nixon took us off the gold standard and defaulted in 1971.
To show you the costs lets just explore one aspect of WORLD POLICE that the USA engages in. We’ll do this with one ship, not even a US NAVY, but a US COAST GUARD (USCG) ship. I will provide an Admiral’s log and a video shot by the crew onboard the ship. While you read and watch this just think of your own boat or your own house and how expensive it is to maintain those properties. Think about fuel and insurance costs. Think about the overhead of supplies used on a daily basis and then times that by 10,000 when you look at a USCG cutter in action on the open seas.
USCGC BOUTWELL
HERE is a video of the USCGC (cutter) BOUTWELL and their WESTPAC operations. The video ends with a US Coast Guard cutter pulling into the Beijing, China port. That must be confusing as hell for the Chinese who watch the ship dock as they wonder if the territorial waters of the US coast are now in Beijing! Imagine the thoughts that an Iraqi or Iranian fisherman must think when they see a US COAST GUARD ship. Would it be the same look Americans would give an IRAQ COAST GUARD ship if it pulled over the half day fishing boat out of Long Beach, CA?
One of the comments from one of the crew was his frustration that after catching these illegal Chinese drift net ships what sort of costs were recovered for the USCG efforts? Was the Chinese ship fined or was the Captain jailed? When you see these operations where there are 46 “boardings” in 49 days there is a cost for that. Operating a cutter at sea and circumnavigating the globe is an expensive undertaking.
HERE is the log of the USCG Admiral Allen for the USCG BOUTWELL on its last tour. What struck me is the numerous navies and coast guards of other countries so small you would think they would only have a jet ski! I did not know there was a Libyan Navy.
IT’S AN EMPIRE THING!
More on EMPIRE …
SHOOTING AN ELEPHANT
By George Orwell 1936
How EMPIRE works …
Speaking of the US Treasury and America, the Global Police, I came across a link to a prior Empire’s narrative written by George Orwell back in 1936. One I have mentioned here before, SHOOTING AN ELEPHANT. Its a fairly short essay, but to me explains Empire from the point of view of the Empire’s foot soldiers who must without question carry out the dirty deeds that Empire forces onto itself from just the sheer weight of Empire always having to look so Empirical!
To me this explains the dilemma of Empire in which the only possible outcome of Empire is total loss of Freedom and Liberty. This was well understood by our Founding Fathers yet not the least considered in Washington DC today. That is where America is headed and the DEBT aspect is only part of the equation, as Orwell here addresses the human toll of Empire. This took place in Burma.
Here is the last paragraph. The very last sentence says it all.
“Afterwards, of course, there were endless discussions about the shooting of the elephant. The owner was furious, but he was only an Indian and could do nothing. Besides, legally I had done the right thing, for a mad elephant has to be killed, like a mad dog, if its owner fails to control it. Among the Europeans opinion was divided. The older men said I was right, the younger men said it was a damn shame to shoot an elephant for killing a coolie, because an elephant was worth more than any damn Coringhee coolie. And afterwards I was very glad that the coolie had been killed; it put me legally in the right and it gave me a sufficient pretext for shooting the elephant. I often wondered whether any of the others grasped that I had done it solely to avoid looking a fool.
HERE is the link to the entire Orwell essay. It is short and very much worth reading. It is one of the best essays I have ever read on Empire and its Achilles heel.
How much of what happens in Washington DC and the US FED today is done “solely to avoid looking a fool”? What if, in private, Obama and Geithner look at each other and say this … Geithner says: “Man Barrack, this is a frickin’ mess and God knows what the hell will fix it! I have no clue what money is going where and whether it will do a damn thing to change anything!” Barrack says back: “Yeah, well whatever you do don’t let the public know we’re clueless!” I mean at some point FDR must have thought, “Thank God we’re in WW2!” It’s HIT HARD AND HOPE time in DC! It was only after LBJ was dead and the LBJ tapes were made public that he confided in 1969 in those tapes that the Vietnam War was lost, yet he committed another 100,000 troops to battle any way! So 60,000 American kids died just so US Foreign Policy could “avoid looking a fool”! Peace with honor is what Nixon said … LBJ died a broken man … As the leader of the American Empire in Southeast Asia LBJ had no choice … no Freedom to be honest. Freedom is lost at the highest levels and choices few. It’s an Empire thing.
“The closed-door policy is one of the root causes of our wars.”-Ludwig Von Mises
BUYING TIME!
GATA SWAPS
We all applauded the GATA initiative on gold swaps that was revealed by GATA this week HERE.
Federal Reserve Admits Hiding Gold Swap Arrangements, GATA Says
MANCHESTER, Conn.–(BUSINESS WIRE)–The Federal Reserve System has disclosed to the Gold Anti-Trust Action Committee Inc. that it has gold swap arrangements with foreign banks that it does not want the public to know about.
The disclosure, GATA says, contradicts denials provided by the Fed to GATA in 2001 and suggests that the Fed is indeed very much involved in the surreptitious international central bank manipulation of the gold price particularly and the currency markets generally.
Warsh wrote in part: “In connection with your appeal, I have confirmed that the information withheld under Exemption 4 consists of confidential commercial or financial information relating to the operations of the Federal Reserve Banks that was obtained within the meaning of Exemption 4. This includes information relating to swap arrangements with foreign banks on behalf of the Federal Reserve System and is not the type of information that is customarily disclosed to the public. This information was properly withheld from you.” (more)
I will propose this to add mud to the waters where the US FED swims … It appears even the IMF is as confused as GATA and would like some transparency.
RIGHT OFF THE IMF WEBSITE
HERE is what the IMF said about gold swaps and gold loans and the counterparty risk involved. Naturally the one who owns the gold is at most risk in the event the gold is not returned at all of delayed for several months or years. While this IMF Update is from 2004, really the same risks are in play now. How do we know there is not “double counting”? How do we know the gold swaps will ever be returned? Will the swaps be paid in gold or paper money?
It seems as if the IMF has more in common with GATA than I first thought according to this Update. Perhaps the IMF should join GATA!
I did not have time to do a LINE ITEM REVIEW and I also made a promise to look into the study of “hyperinflation” that is going on over at the CATO INSTITUTE. I will do that next week.
“It is indeed one of the principal drawbacks of every kind of interventionism that it is so difficult to reverse the process.” – Ludwig Von Mises
GOVERNMENT IS ONLY AS HONEST AS ITS MONEY – ME
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