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11.16 How pesticide bans can prevent tens of thousands of suicides a year [how many thousands more die early from eating pesticide-laced food?]

11.15  The long read:  The plastic backlash: what's behind our sudden rage – and will it make a difference? [the world wants to throw-up...]

11.15 Claws out: crab fishermen sue 30 oil firms over climate change [workers are waking-up...]

11.15 Trump administration to cut air pollution from heavy-duty trucks

11.14 Backed by Ocasio-Cortez, Youth Climate Activists Arrested in Pelosi's Office Demanding Democrats Embrace 'Green New Deal'

11.13 What would a smog-free city look like?

11.13 Global report highlights Australia’s renewables potential amid mixed signals for coal

11.13 Interior department whistleblower: Ryan Zinke hollowed out the agency

11.12  This Land is Your Land:  The Zinke effect: how the US interior department became a tool of industry [behaving ignorantly again...]

11.12 Planned Parenthood's new president warns of 'state of emergency' for women's health

11.11 Trump responds to worst fires in California’s history by threatening to withhold federal aid [behaving ignorantly again...]

11.11 Interior department sued for ‘secretive process’ in at-risk species assessment [behaving ignorantly again...]

11.11 Keystone XL pipeline: judge rules government 'jumped the gun' and orders halt [behaving ignorantly again...]

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11.16 As 'Green New Deal' Demand Grows, Democrats Have Choice: Confront and Defeat Fossil Fuel Industry or Take Credit for 'Doomed' Planet [Two choices: Save life-on-Earth or help Republicans let it die?]

11.16 Trump’s latest interview shows a president who’s in way over his head

11.16 Why the political fight in Georgia is far from over

11.16 Florida judge sides with Democrats, giving thousands a second chance to fix their ballots

11.15 Democrats Won Big. Can They Go Bold, Too? [it's about suppressing the influence and leadership by Republican-like Democrats who counsel 'íncremental' (no) change, such as Nancy Pelosi, Steny Hoyer, Hillary Clinton, Chuck Shumer and Joe Biden]

11.15 Pentagon Officials Forced to Make Fewer Public Appearances to Avoid Provoking Trump [...by revealing Trump's huuuge ignorance]

11.15 REPUBLICANS USED A BILL ABOUT WOLVES TO AVOID A VOTE ON YEMEN WAR [if there are 'defense industry' profits to be made—including congress-critter insider-trading—and political 'donations' to be had, we mustn't stop killing innocent civilians!]

11.15 Big Oil v the planet is the fight of our lives. Democrats must choose a side

11.14 The Real Florida Recount Fraud

11.14 Telling NRA #ThisIsOurLane, Doctors' Photos Show Blood-Soaked Reality of America's Gun Madness

11.14 At Freshman Orientation, Young and Growing Progressive Caucus Makes Clear It Will 'Fight Like Hell' for Bold Democratic Agenda

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11.16 Amazon’s HQ2 Will Get a Tax Break Designed to Help the Poor [a Republican program that directly helps participating wealthy companies—but only helps workers if and when 'trickle-down' occurs.]

11.16 Trump doesn’t want to punish Saudi Arabia over Khashoggi. His new sanctions prove it. [George W. Bush made a similar immoral decision for the same oily reasons after 9-11, protecting Saudi defense contracts while facilitating the slaughter of poorer Arab "terrorists" in the region.]

11.15 The Earth is in a death spiral. It will take radical action to save us [fossil fuel burning, un-recyclable plastic production/use and methane gas release must cease ASAP.]

11.14 Brexit: May tells her cabinet, this is the deal – now back me

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11.15 Cuba to pull doctors out of Brazil after President-elect Bolsonaro comments [terms must be negotiated for fairness to Cuba's health professionals without disruption of healthcare for Brazil's poor]

11.14 'Appalling' Khashoggi audio shocked Saudi intelligence – Erdogan [Exposing a psychopath?]

11.14 Israel and Hamas launch hundreds of attacks in Gaza clash

11.14 Mueller seeking more details on Nigel Farage, key Russia inquiry target says

11.13 Austin's Fix for Homelessness: Tiny Houses, and Lots of Neighbors

11.13 Portugal Dared to Cast Aside Austerity. It’s Having a Major Revival.

11.13 Caravan marks one month on the road: ‘We keep on going, laughing or crying’

11.13 Letter Shows Einstein’s Prescient Concerns About ‘Dark Times’ in Germany

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  Print view: Thinking About Spending
ECONOMIC ANALYSIS:

Thinking About Spending

by Fred Cederholm
We are wallowing in a global crisis of debt and our fine upstanding public servants are adding more debt as the solution to this debt-initiated crisis. It ain’t gonna work.

I’ve been thinking about spending. Actually I’ve been thinking about Uncle $ugar, the National Debt, the Social Security Trust Fund, Illinois, British Petroleum (BP), and those Gulf of Mexico oil mishap victims. Spending is the “solution” to everything. Spending will fix things. Spending truly makes us complacent and happy. Being owed money is the same thing as actually having it, right? Sorry but the current situation is all smoke, lights, and mirrors. After all, the number one item in the three biggest lies is “your check is in the mail...” You may die waiting to get what you think you are due!

You see, we are all the victims of “the sizzle instead of the steak” which characterizes the bait-and-switch being foisted upon US/us. The last time Uncle $ugar actually ran a true fiscal year surplus was when Nixon was President in the early 1970’s, and that was some FORTY years ago. Uncle and his government(s) have been very profligate—playing fast and loose with the checkbook. (“Hey, I can’t be overdrawn, I’ve got plenty of checks left”?!) Thirty years ago Dick Cheney said “the (Reagan era) deficits, don’t matter...” It was during this time frame when our National Debt took off at Star Trek warp speed. The National Debt stood at just under ONE TRILLION in 1981. It took us 190 years to get our first TRILLION of debt. This debt now approaches $13.193 TRILLION. We are adding a proposed $1.6 TRILLION in the current fiscal year. Now a TRILLION doesn’t even buy us a year of OVER-spending.

We are being undone by “the system” itself. Spending (make that debt-financed spending) may keep the public satiated for awhile, but buying friendship and loyalty is never long-term in the public (or private) realm(s). The public circuses of the Caesars, Caligula, and Nero may have kept the public drunk and happy for awhile, but things didn’t end very pleasantly for them, did they? It won’t for US/us now, either. We are wallowing in a (global) crisis of debt and our fine upstanding public servants are still putting forth, adding more debt as the solution to this debt-initiated crisis. It ain’t gonna work, but, what else are they going to do, cut spending and be responsible? How is that going to fair with the recipients of the largesse and governmental programs’ generosity? How will that get the pols re-elected?

Uncle $ugar is different in that he and his partners in crime at the Treasury and the Federal Reserve can “legally” print more money. (How could this be illegal when the government is doing it and the government makes the laws?) This scam game will go on for Uncle $ugar, though, because he is still issuing checks to the disgruntled masses. The situation is so much worse than it feels because Uncle has used prepaid surpluses elsewhere. From the time of Lyndon Johnson (make that Vietnam), roughly $4.5 TRILLION of Social Security surpluses and other pension trust monies have been co-mixed in the general kitty and spent elsewhere. The huge escalation of taxes paid in since Reagan were supposed to keep everything solvent until 2037. Well guess what? These surpluses now will become shortfalls in less than five years. Those who paid in will be forced to pay Uncle again, in order to be able to pay themselves. How does that work?

By the end of this fiscal year, Illinois will be behind a full year’s worth of payments (plus what is owed in arrears to the pension funds). The legislature plans to address all this in November—after the elections.

Illinois, where I live, is now regarded as the worst-off of the fifty states. When they ran out of bucks, they just stopped making payments. They owe everyone. Springfield is obligated to have a balanced budget, so on the cash basis of accounting they just stop cutting checks when the cash runs out. They could borrow some in anticipation of coming revenues, but the Land of Lincoln now has a worse than “junk bond” rating—at the bottom of the 50 states. This will greatly raise the cost of borrowing. It is projected that the state will run out of the current year’s cash this coming December. Thus, by the end of this fiscal year, Illinois will be behind a full year’s worth of payments (plus what is owed in arrears to the pension funds). The legislature plans to address all this in November—after the elections. We are told not to worry, but where are they going to get the money (if not from us)?

The media is ripe with hype and spin for the BP $ 20,000,000,000 ($20 BILLION) trust fund set up to reimburse the financial victims of the Horizon Deepwater nightmare in the Gulf. This will fix and restore everything. But, where is the money? Just last week, there were at least six major news stories about victims getting less than they are owed, or nothing at all. BP is accepting calls, but not returning most of them. Money is clearly being spent, but on advertisements telling us what BP is going to do—kind of like “Don’t worry, be happy... we are on top of the situation.” It is now day 82 and counting...

We clearly have our priorities all out of focus by giving any concern whatsoever to what is owed on the Federal, State, and corporate levels. Let’s face it, the debts will all ultimately fall to the taxpayers in the end. So... this all is money we just owe ourselves. Hey, “we’re” probably never going to have to fork over the cash anyway, so big deal! What’s $ 13,193,000,000,000? What’s another $1,600,000,000,000? What’s a $4,500,000,000,000 prepaid (trust) fund that no longer exists? What's a year-plus of unpaid bills in Illinois? Who cares about what is due the Gulf of Mexico victims? They all said that they are gonna pay up, right? It is only money. I mean... it is only paper.

Not so. What I really MEAN is that our so-called assets are LIABILITIES!

I’m Fred Cederholm and I’ve been thinking. You should be thinking, too.


Copyright 2009 Questions, Inc. All rights reserved. Fred Cederholm is a CPA/CFE, a forensic accountant, and writer. He is a graduate of the University of Illinois (B.A., M.A. and M.A.S.). He can be reached at asklet@rochelle.net.



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This story was published on July 12, 2010.

 

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