A Short History of US Paper Currency

http://www.the-privateer.com/paper.html (Original)

A History Of U.S. Paper Money

(The notes depicted here are for illustrative purposes ONLY)
If you want to know why Gold is anathema to bankers and financial authorities, take a a good close look at these Notes. The history of the move away from Gold in the 20th century is printed right on them.
"Government is the only agency that can take a valuable commodity like paper, slap some ink on it, and make it totally worthless" Ludwig von Mises. For the ultimate illustration of the truth of this statement, we give you the German Reichsmark of the early 1920s
REAL Paper Money
1913: $50 Gold Certificate
The last of the true Gold Certificates - the Federal Reserve was instituted in December 1913. This is a completely honest and upright money. It says so right on the certificate:


What you are looking at here is a money substitute. Any holder of this certificate held title to 2.41896 troy oz of Gold (at $US20.67 per troy oz.) which could be redeemed at any bank or from the U.S. Treasury itself at any time.
Enter The Federal Reserve
1914: $1 Federal Reserve Bank Note
At the time this was issued, a "note" was well understood to be a promise of payment. Accordingly, this is prominently labelled as a "Federal Reserve Bank Note".
And what is this Note redeemable in? Here's what it says: "Secured By United States Certificates Of Indebtedness Or One-Year Gold Notes, Deposited With The Treasurer Of The United States Of America". The Note was directly redeemable in Treasury debt, but it was not directly redeemable in Gold.
It's Money Because We Say It Is
1928: $100 Gold Certificate
The last of the U.S. Gold Certificates. This certificate was discontinued in 1934 - the same year as the U.S. ceased to issue Gold coinage and made it illegal for Americans to own Gold.
While the statement that the certificate is redeemable in Gold coin still appears, there is this ominous addition imprinted on the "Gold Certificate" stamp.
"This Certificate Is A Legal Tender In The Amount Thereof In Payment Of All Debts And Owen Public And Private". "Owen" is an archaic form of the verb "owe", meaning "to be in debt".
Redeemable In What?
1934: $1000 Federal Reserve Note
As it says right on the note, "The United States Of America Will Pay To The Bearer On Demand One Thousand Dollars". But what is it redeemable in? "Lawful Money".
It says so right on the note: "This Note Is Legal Tender For All Debts Public And Private And Is Redeemable In Lawful Money At The United States Treasury Or At Any Federal Reserve Bank".
In 1934, Gold was no longer "lawful money". In fact, this note was "redeemable" in another note just like it, or 10 "$100s", or 50 "$20s", or 1000 "$1s" - you get the picture.
Remember These?
1963: $1 Federal Reserve Note
The U.S. probably printed more of these than any other note in its history. When they first came out, you could buy quite a lot with one. Now, the U.S. $1 Dollar bill is being phased out.
The recognition of what a "note" is is no more. There is no statement about what this note can be redeemed in anywhere on it. Nor does the Fed bother to point out that the note is "lawful money" - just try and spend anything else! The Note simply states: "This Note Is Legal Tender For All Debts Public And Private". That's it.
The New U.S. Paper Money
1997: $50 Federal Reserve Note
Here is a specimen of the new "counterfeit proof" U.S. paper currency (the "$100s" came out in 1996). As far as what is written on the note, there is not much to distinguish it from the $1 note above. The only discernible difference is the markedly inferior engraving.
But look at the portrait of Ulysses S. Grant, and then scroll up to the first example on this page. Same man, radically different "money". This is counterfeiting of a much more blatant kind than the mere copying of what is already just a piece of paper.

 

http://www.sprott.com/metal.php

Interesting place to look around. Checkout the articles in the upper left hand corner.

 

I think the closest you can get is the gold dinar that has been proposed for trade between muslim countries. I searched, but know of no bullion backed currency world wide.

 

The only gold backed item I can find is the libertydollar.org

Not sure how long the .gov is gonna let this float.

 

A Phone Call to the Fed

<big><big>http://www.apfn.org/apfn/money2.htm </big></big>
A Phone Call To The Fed<big><big> </big></big>​

​

[SIZE=+1]From Dan Benham [/SIZE]​

[SIZE=+1]©1988-2002[/SIZE] [SIZE=+1]d.benham@worldnet.att.net[/SIZE] ​

[SIZE=+1]9-8-2[/SIZE] ​

<table border="0" cellpadding="0" cellspacing="0" height="241" width="586"><caption>
</caption><tbody></tbody> <tbody> <tr> <td height="240" valign="top" width="100%"><dl><dt>[SIZE=+1]The following is a conversation with Mr. Ron Supinski of the Public Information Department of the San Francisco Federal Reserve Bank. This is an account of that conversation.[/SIZE] </dt><dt>[SIZE=+1]CALLER - Mr. Supinski, does my country own the Federal Reserve System?[/SIZE] </dt><dt>[SIZE=+1]MR. SUPINSKI - We are an agency of the government.[/SIZE] </dt><dt>[SIZE=+1]CALLER - That's not my question. Is it owned by my country?[/SIZE] </dt><dt>[SIZE=+1]MR. SUPINSKI - It is an agency of the government created by congress.[/SIZE] </dt><dt>[SIZE=+1]CALLER - Is the Federal Reserve a Corporation?[/SIZE] </dt><dt>[SIZE=+1]MR. SUPINSKI - Yes[/SIZE] </dt><dt>[SIZE=+1]CALLER - Does my government own any of the stock in the Federal Reserve?[/SIZE] </dt><dt>[SIZE=+1]MR. SUPINSKI - No, it is owned by the member banks.[/SIZE] </dt><dt>[SIZE=+1]CALLER - Are the member banks private corporations?[/SIZE] </dt><dt>[SIZE=+1]MR. SUPINSKI - Yes[/SIZE] </dt><dt>[SIZE=+1]CALLER - Are Federal Reserve Notes backed by anything?[/SIZE] </dt><dt>[SIZE=+1]MR. SUPINSKI-Yes, by the assets of the Federal Reserve but, primarily by the power of congress to lay tax on the people.[/SIZE] </dt><dt>[SIZE=+1]CALLER - Did you say, by the power to collect taxes is what backs Federal Reserve Notes?[/SIZE] </dt><dt>[SIZE=+1]MR. SUPINSKI - Yes[/SIZE] </dt><dt>[SIZE=+1]CALLER - What are the total assets of the Federal Reserve?[/SIZE] </dt><dt>[SIZE=+1]MR. SUPINSKI - The San Francisco Bank has $36 Billion in assets.[/SIZE] </dt><dt>[SIZE=+1]CALLER - What are these assets composed of?[/SIZE] </dt><dt>[SIZE=+1]MR. SUPINSKI - Gold, the Federal Reserve Bank itself and government securities.[/SIZE] </dt><dt>[SIZE=+1]CALLER - What value does the Federal Reserve Bank carry gold per oz. on their books?[/SIZE] </dt><dt>[SIZE=+1]MR. SUPINSKI - I don't have that information but the San Francisco Bank has $1.6 billion in gold.[/SIZE] </dt><dt>[SIZE=+1]CALLER - Are you saying the Federal Reserve Bank of San Francisco has $1.6 billion in gold, the bank itself and the balance of the assets is government securities?[/SIZE] </dt><dt>[SIZE=+1]MR. SUPINSKI - Yes.[/SIZE] </dt><dt>[SIZE=+1]CALLER - Where does the Federal Reserve get Federal Reserve Notes from?[/SIZE] </dt><dt>[SIZE=+1]MR. SUPINSKI - They are authorized by the Treasury.[/SIZE] </dt><dt>[SIZE=+1]CALLER - How much does the Federal Reserve pay for a $10 Federal Reserve Note?[/SIZE] </dt><dt>[SIZE=+1]MR. SUPINSKI - Fifty to seventy cents.[/SIZE] </dt><dt>[SIZE=+1]CALLER - How much do they pay for a $100.00 Federal Reserve Note?[/SIZE] </dt><dt>[SIZE=+1]MR. SUPINSKI - The same fifty to seventy cents.[/SIZE] </dt><dt>[SIZE=+1]CALLER - To pay only fifty cents for a $100.00 is a tremendous gain, isn't it?[/SIZE] </dt><dt>[SIZE=+1]MR. SUPINSKI - Yes[/SIZE] </dt><dt>[SIZE=+1]CALLER - According to the US Treasury, the Federal Reserve pays $20.60 per 1,000 denomination or a little over two cents for a $100.00 bill, is that correct?[/SIZE] </dt><dt>[SIZE=+1]MR. SUPINSKI - That is probably close.[/SIZE] </dt><dt>[SIZE=+1]CALLER - Doesn't the Federal Reserve use the Federal Reserve Notes that cost about two cents each to purchase US Bonds from the government?[/SIZE] </dt><dt>[SIZE=+1]MR. SUPINSKI - Yes, but there is more to it than that.[/SIZE] </dt><dt>[SIZE=+1]CALLER - Basically, that is what happens?[/SIZE] </dt><dt>[SIZE=+1]MR. SUPINSKI - Yes, basically you are correct.[/SIZE] </dt><dt>[SIZE=+1]CALLER - How many Federal Reserve Notes are in circulation?[/SIZE] </dt><dt>[SIZE=+1]MR. SUPINSKI - $263 billion and we can only account for a small percentage.[/SIZE] </dt><dt>[SIZE=+1]CALLER - Where did they go?[/SIZE] </dt><dt>[SIZE=+1]MR. SUPINSKI - Peoples mattress, buried in their back yards and illegal drug money.[/SIZE] </dt><dt>[SIZE=+1]CALLER - Since the debt is payable in Federal Reserve Notes, how can the $4 trillion national debt be paid-off with the total Federal Reserve Notes in circulation?[/SIZE] </dt><dt>[SIZE=+1]MR. SUPINSKI - I don't know.[/SIZE] </dt><dt>[SIZE=+1]CALLER - If the Federal Government would collect every Federal Reserve Note in circulation would it be mathematically possible to pay the $4 trillion national debt?[/SIZE] </dt><dt>[SIZE=+1]MR. SUPINSKI - No[/SIZE] </dt><dt>[SIZE=+1]CALLER - Am I correct when I say, $1 deposited in a member bank $8 can be lent out through Fractional Reserve Policy?[/SIZE] </dt><dt>[SIZE=+1]MR. SUPINSKI - About $7.[/SIZE] </dt><dt>[SIZE=+1]CALLER - Correct me if I am wrong but, $7 of additional Federal Reserve Notes were never put in circulation. But, for lack of better words were "created out of thin air " in the form of credits and the two cents per denomination were not paid either. In other words, the Federal Reserve Notes were not physically printed but, in reality were created by a journal entry and lent at interest. Is that correct?[/SIZE] </dt><dt>[SIZE=+1]MR. SUPINSKI - Yes[/SIZE] </dt><dt>[SIZE=+1]CALLER - Is that the reason there are only $263 billion Federal Reserve Notes in circulation?[/SIZE] </dt><dt>[SIZE=+1]MR. SUPINSKI - That is part of the reason.[/SIZE] </dt><dt>[SIZE=+1]CALLER - Am I mistaking that when the Federal Reserve Act was passed (on Christmas Eve) in 1913, it transferred the power to coin and issue our nation's money and to regulate the value thereof from Congress to a Private corporation. And my country now borrows what should be our own money from the Federal Reserve (a private corporation) plus interest. Is that correct and the debt can never be paid off under the current money system of country?[/SIZE] </dt><dt>[SIZE=+1]MR. SUPINSKI - Basically, yes.[/SIZE] </dt><dt>[SIZE=+1]CALLER - I smell a rat, do you?[/SIZE] </dt><dt>[SIZE=+1]MR. SUPINSKI - I am sorry, I can't answer that, I work here.[/SIZE] </dt><dt>[SIZE=+1]CALLER - Has the Federal Reserve ever been independently audited?[/SIZE] </dt><dt>[SIZE=+1]MR. SUPINSKI - We are audited.[/SIZE] </dt><dt>[SIZE=+1]CALLER - Why is there a current House Resolution 1486 calling for a complete audit of the Federal Reserve by the GAO and why is the Federal Reserve resisting?[/SIZE] </dt><dt>[SIZE=+1]MR. SUPINSKI - I don't know.[/SIZE] </dt><dt>[SIZE=+1]CALLER - Does the Federal Reserve regulate the value of Federal Reserve Notes and interest rates?[/SIZE] </dt><dt>[SIZE=+1]MR. SUPINSKI - Yes[/SIZE] </dt><dt>[SIZE=+1]CALLER - Explain how the Federal Reserve System can be Constitutional if, only the Congress of the US, which comprises of the Senate and the House of representatives has the power to coin and issue our money supply and regulate the value thereof? [Article 1 Section 1 and Section 8] Nowhere, in the Constitution does it give Congress the power or authority to transfer any powers granted under the Constitution to a private corporation or, does it?[/SIZE] </dt><dt>[SIZE=+1]MR. SUPINSKI - I am not an expert on constitutional law. I can refer you to our legal department.[/SIZE] </dt><dt>[SIZE=+1]CALLER - I can tell you I have read the Constitution. It does NOT provide that any power granted can be transferred to a private corporation. Doesn't it specifically state, all other powers not granted are reserved to the States and to the citizens? Does that mean to a private corporation?[/SIZE] </dt><dt>[SIZE=+1]MR. SUPINSKI - I don't think so, but we were created by Congress.[/SIZE] </dt><dt>[SIZE=+1]CALLER - Would you agree it is our country and it should be our money as provided by our Constitution?[/SIZE] </dt><dt>[SIZE=+1]MR. SUPINSKI - I understand what you are saying.[/SIZE] </dt><dt>[SIZE=+1]CALLER - Why should we borrow our own money from a private consortium of bankers? Isn't this why we had a revolution, created a separate sovereign nation and a Bill of Rights?[/SIZE] </dt><dt>[SIZE=+1]MR. SUPINSKI - (Declined to answer).[/SIZE] </dt><dt>[SIZE=+1]CALLER - Has the Federal Reserve ever been declared constitutional by the Supreme Court?[/SIZE] </dt><dt>[SIZE=+1]MR. SUPINSKI - I believe there has been court cases on the matter.[/SIZE] </dt><dt>[SIZE=+1]CALLER - Have there been Supreme Court Cases?[/SIZE] </dt><dt>[SIZE=+1]MR. SUPINSKI - I think so, but I am not sure.[/SIZE] </dt><dt>[SIZE=+1]CALLER - Didn't the Supreme Court declare unanimously in A.L.A. Schechter Poultry Corp. vs. US and Carter vs. Carter Coal Co. the corporative-state arrangement an unconstitutional delegation of legislative power? ["The power conferred is the power to regulate. This is legislative delegation in its most obnoxious form; for it is not even delegation to an official or an official body, presumptively disinterested, but to private persons." Carter vs. Carter Coal Co...][/SIZE] </dt><dt>[SIZE=+1]MR. SUPINSKI - I don't know, I can refer you to our legal department.[/SIZE] </dt><dt>[SIZE=+1]CALLER - Isn't the current money system a house of cards that must fall because, the debt can mathematically never be paid-off?[/SIZE] </dt><dt>[SIZE=+1]MR. SUPINSKI - It appears that way. I can tell you have been looking into this matter and are very knowledgeable. However, we do have a solution.[/SIZE] </dt><dt>[SIZE=+1]CALLER - What is the solution?[/SIZE] </dt><dt>[SIZE=+1]MR. SUPINSKI - The Debit Card.[/SIZE] </dt><dt>[SIZE=+1]CALLER - Do you mean under the EFT Act (Electronic Funds Transfer)? Isn't that very frightening, when one considers the capabilities of computers? It would provide the government and all it's agencies, including the Federal Reserve such information as: You went to the gas station @ 2:30 and bought $10.00 of unleaded gas @ $1.41 per gallon and then you went to the grocery store @ 2:58 and bought bread, lunch meat and milk for $12.32 and then went to the drug store @ 3:30 and bought cold medicine for $5.62. In other words, they would know where we go, when we went, how much we paid, how much the merchant paid and how much profit he made. Under the EFT they will literally know everything about us. Isn't that kind of scary?[/SIZE] </dt><dt>[SIZE=+1]MR. SUPINSKI - Yes, it makes you wonder.[/SIZE] </dt><dt>[SIZE=+1]CALLER - I smell a GIANT RAT that has overthrown my constitution. Aren't we paying tribute in the form of income taxes to a consortium of private bankers?[/SIZE] </dt><dt>[SIZE=+1]MR. SUPINSKI - I can't call it tribute, it is interest.[/SIZE] </dt><dt>[SIZE=+1]CALLER - Haven't all elected officials taken an oath of office to preserve and defend the Constitution from enemies both foreign and domestic? Isn't the Federal Reserve a domestic enemy?[/SIZE] </dt><dt>[SIZE=+1]MR. SUPINSKI - I can't say that.[/SIZE] </dt><dt>[SIZE=+1]CALLER - Our elected officials and members of the Federal Reserve are guilty of aiding and abetting the overthrowing of my Constitution and that is treason. Isn't the punishment of treason death?[/SIZE] </dt><dt>[SIZE=+1]MR. SUPINSKI - I believe so.[/SIZE] </dt><dt>[SIZE=+1]CALLER - Thank you for your time and information and if I may say so, I think you should take the necessary steps to protect you and your family and withdraw your money from the banks before the collapse, I am.[/SIZE] </dt><dt>[SIZE=+1]MR. SUPINSKI - It doesn't look good.[/SIZE] </dt><dt>[SIZE=+1]CALLER - May God have mercy on the souls who are behind this unconstitutional and criminal act called the Federal Reserve. When the ALMIGHTY MASS awakens to this giant hoax, they will not take it with a grain of salt. It has been a pleasure talking to you and I thank you for your time. I hope you will take my advice before it does collapse.[/SIZE] </dt><dt>[SIZE=+1]MR. SUPINSKI - Unfortunately, it does not look good.[/SIZE] </dt><dt>[SIZE=+1]CALLER - Have a good day and thanks for your time.[/SIZE] </dt><dt>[SIZE=+1]MR. SUPINSKI - Thanks for calling.[/SIZE] </dt><dt> </dt><dt>[SIZE=+1]If the reader has any doubts to the validity of this conversation, call your nearest Federal Reserve Bank, YOU KNOW THE QUESTIONS TO ASK! You won't find them listed under the Federal Government. They are in the white pages, along with Federal Express, Federal Deposit Insurance Corp. (FDIC), and any other business. Find out for yourself if all this is true. [/SIZE] </dt><dt> </dt><dt>[SIZE=+1]And then, go to your local law library and look up the case of Lewis vs. US, case #80-5905, 9th Circuit, June 24, 1982. It reads in part: "Examining the organization and function of the Federal Reserve Banks and applying the relevant factors, we conclude that the federal reserve are NOT federal instrumentality's . . but are independent and privately owned and controlled corporations - federal reserve banks are listed neither as "wholly-owned' government corporations [under 31 USC Section 846] nor as 'mixed ownership' corporations [under 31 USC Section 856] . . . 28 USC Sections 1346(b), 2671. '[/SIZE] </dt><dt> </dt><dt>[SIZE=+1]Federal agency' is defined as: the executive departments, the military departments, independent establishments of the United States, and corporations acting primarily as instrumentality's of the United States, but does not include any contractors with the United States . . . There are no sharp criteria for determining whether an entity is a federal agency within the meaning of the Act, but the critical factor is the existence of the federal government control over the 'detailed physical performance' and 'day to day operations' of that entity.[/SIZE] </dt><dt> </dt><dt>[SIZE=+1]Other factors courts have considered include whether the entity is an independent corporation . . . whether the government is involved in the entity's finances, . . . and whether the mission of the entity furthers the policy of the United States . . . Examining the organization and function of the Federal Reserve Banks, and applying the relevant factors, we conclude that the Reserve Banks are not federal instrumentalities ...[/SIZE] </dt><dt> </dt><dt>[SIZE=+1]It is evident from the legislative history of the Federal Reserve Act that Congress did not intend to give the federal government direction over the daily operation of the Reserve Banks . . . The fact that the Federal Reserve Board regulates the Reserve Banks does not make them federal agencies under the Act . . . Unlike typical federal agencies, each bank is empowered to hire and fire employees at will. Bank employees do not participate in the Civil Service Retirement System. They are covered by worker's compensation insurance, purchased by the Bank, rather than the Federal Employees Compensation Act.[/SIZE] </dt><dt> </dt><dt>[SIZE=+1]Employees traveling on Bank business are not subject to federal travel regulations and do not receive government employee discounts on lodging and services . . . Finally, the Banks are empowered to sue and be sued in their own name. 12 USC Section 341. They carry their own liability insurance and typically process and handle their own claims . . ." According to the Federal Reserve Bank of Philadelphia, "When the Federal Reserve was created, its stock was sold to the member banks." ("The Hats The Federal Reserve Wears," published by the Federal Reserve Bank of Philadelphia).[/SIZE] </dt><dt> </dt><dt>[SIZE=+1]The original Stockholders of the Federal Reserve Banks in 1913 were the Rockefeller's, JP Morgan, Rothschild's, Lazard Freres, Schoellkopf, Kuhn-Loeb, Warburgs, Lehman Brothers and Goldman Sachs. The MONEYCHANGERS wanted to be insured they had a monopoly over our money supply, so Congress passed into law Title 12, Section 284 of the United States Code. Section 284 specifically states, "NO STOCK ALLOWED TO THE US" *[/SIZE] </dt><dt> </dt><dt>[SIZE=+1]Monopoly - "A privilege or peculiar advantage vested in one or more persons or companies, consisting in the exclusive right [or power] to carry on a particular business or trade, manufacture a particular article, or control the sale of the whole supply of a particular commodity, A form of market structure in which only a few firms dominate the total sales of a product or service.[/SIZE] </dt><dt> </dt><dt>[SIZE=+1]'Monopoly,' as prohibited by Section 2 of the Sherman Antitrust Act, has two elements: possession of a monopoly power in relevant market and willful acquisition or maintenance of that power, as distinguished from growth or development as a consequence of a superior power, business acumen, or historical product. A monopoly condemned by the Sherman Act is the power to fix prices, or exclude competition, coupled with policies designed to use and preserve that power." (Black's Law Dictionary, 6th Edition) The Federal Reserve Act goes one step farther, "No Senator or Representative in Congress shall be a member of the Federal Reserve Board or an officer or director of a Federal Reserve Bank." They didn't want We The People to have any say in the operation of their monopoly through our elected officials.[/SIZE] </dt></dl></td></tr></tbody></table>

 

http://www.realityzone.com/creature.html

Seacowboy, I think you would truly enjoy this book. $36 bucks for the hard cover and you can get it through amazon.com, too.

I made it through the first 1/3rd so far and put it down because I got so pissed. I will be rereading over Christmas and finishing as I plan to take notes this time. FIAT nothing and people just have no idea that there was very little inflation prior to 1913. Since then, we have had major inflation and a rapid devaluation of the dollar against gold & silver. Wouldn't you love to see what our true national debt is? I bet people would crap themselves when they found out we had 5 x the debt that is reported (50 trillion versus 10 trillion and that we may only have a trillion or so dollars in circulation be we will know since the fed no longer reports M3 the true money supply of dollars. If you stop reporting something, it must be real bad!)

 

<!-- end leadin graphic --> <hr noshade="noshade" size="1"> <!-- standing head --><!-- end standing head --><!-- head --> [FONT=Palatino, Georgia, Times New Roman, Times, serif][SIZE=+2]U.S. dollar facing imminent collapse?[/SIZE][/FONT]
<!-- end head --><!-- deck --> [FONT=Palatino, Georgia, Times New Roman, Times, serif][SIZE=+1]Fed in bind as Paulsen, Bernanke head to China[/SIZE][/FONT]
<!-- end deck --> <hr size="1"> [SIZE=-1]Posted: December 10, 2006
5:38 p.m. Eastern

[/SIZE] [FONT=Palatino, Book Antiqua, Times New Roman, Georgia, Times] [/FONT] [FONT=Palatino, Book Antiqua, Times New Roman, Georgia, Times][FONT=Palatino, Times New Roman, Georgia, Times, serif] <!-- byline --> Jerome R. Corsi
<!-- end byline --> <!--- copywrite only show on NON commentary pages as per joseph meeting 8/23/06 ------> [SIZE=-1] <!-- copyright --> © 2006 WorldNetDaily.com <!-- end copyright --> [/SIZE] [/FONT] [/FONT]
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[FONT=Palatino, Book Antiqua, Times New Roman, Georgia, Times]Even as the stock market is hitting new record highs almost every day, the Federal Reserve and Treasury Department are quietly coordinating a devaluation of the dollar that the Bush administration hopes will be a slow decline rather than a dollar collapse. [/FONT]
[FONT=Palatino, Book Antiqua, Times New Roman, Georgia, Times]This week, in an unusual move, the [COLOR=blue ! important][FONT=Palatino,Book Antiqua,Times New Roman,Georgia,Times][COLOR=blue ! important][FONT=Palatino,Book Antiqua,Times New Roman,Georgia,Times]Bush [/FONT][COLOR=blue ! important][FONT=Palatino,Book Antiqua,Times New Roman,Georgia,Times]administration[/FONT][/COLOR][/FONT][/COLOR][/COLOR] is sending virtually the entire economic "A-team" to visit China for a "strategic economic dialogue" in Beijing Dec. 14 and 15. [/FONT]
[FONT=Palatino, Book Antiqua, Times New Roman, Georgia, Times]Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke are leading the delegation, along with five other cabinet-level officials, including Secretary of Commerce Carlos Gutierrez. Also in the delegation will be Labor Secretary Elaine Chao, Health and Human Services Secretary Mike Leavitt, [COLOR=blue ! important][FONT=Palatino,Book Antiqua,Times New Roman,Georgia,Times][COLOR=blue ! important][FONT=Palatino,Book Antiqua,Times New Roman,Georgia,Times]Energy [/FONT][COLOR=blue ! important][FONT=Palatino,Book Antiqua,Times New Roman,Georgia,Times]Secretary[/FONT][/COLOR][/FONT][/COLOR][/COLOR] Sam Bodman, and U.S. Trade Representative Susan Schwab. [/FONT]
[FONT=Palatino, Book Antiqua, Times New Roman, Georgia, Times]The Bush administration wants to get China's cooperation in preventing a dollar collapse. That's the conclusion of John Williams, an experienced professional econometrician, who writes the "Shadow Government Statistics" blog. [/FONT]
[FONT=Palatino, Book Antiqua, Times New Roman, Georgia, Times](Story continues below) [/FONT]
[FONT=Palatino, Book Antiqua, Times New Roman, Georgia, Times]<script type="text/javascript"><!-- google_ad_client = "pub-9952085791529017"; google_ad_width = 300; google_ad_height = 250; google_ad_format = "300x250_as"; google_ad_type = "text_image"; google_ad_channel =""; google_color_border = "FFFFFF"; google_color_bg = "FFFFFF"; google_color_link = "660000"; google_color_text = "000000"; google_color_url = "B3B3B3"; //--></script> <script type="text/javascript" src="http://pagead2.googlesyndication.com/pagead/show_ads.js"> </script><iframe name="google_ads_frame" src="http://pagead2.googlesyndication.com/pagead/ads?client=ca-pub-9952085791529017&dt=1165844899375&lmt=1165844898&format=300x250_as&output=html&url=http%3A%2F%2Fworldnetdaily.com%2Fnews%2Farticle.asp%3FARTICLE_ID%3D53311&color_bg=FFFFFF&color_text=000000&color_link=660000&color_url=B3B3B3&color_border=FFFFFF&ad_type=text_image&ref=http%3A%2F%2Fworldnetdaily.com%2Fbiznetdaily%2F&cc=26&u_h=768&u_w=1024&u_ah=740&u_aw=1024&u_cd=32&u_tz=-300&u_his=8&u_java=true&u_nplug=20&u_nmime=99" marginwidth="0" marginheight="0" vspace="0" hspace="0" allowtransparency="true" frameborder="0" height="250" scrolling="no" width="300"></iframe> [/FONT]
[FONT=Palatino, Book Antiqua, Times New Roman, Georgia, Times]Williams has re-created M3, a money-supply measure whose data the Federal Reserve simply stopped publishing after issuing a technically worded March 2006 announcement. [/FONT]
[FONT=Palatino, Book Antiqua, Times New Roman, Georgia, Times]Williams reports M3 is currently growing at close to a 9.6 percent rate and trending higher, compared with an 8 percent rate early this year, when the Fed quit reporting the measure. [/FONT]
[FONT=Palatino, Book Antiqua, Times New Roman, Georgia, Times]"The Fed is pumping liquidity into the U.S. economy," Williams told WND, "and the Fed evidently did not want the markets to follow too closely what the Fed was doing with the money supply." [/FONT]
[FONT=Palatino, Book Antiqua, Times New Roman, Georgia, Times]China today now is holding a historically unprecedented $1 trillion in foreign exchange reserves. During the Thanksgiving holiday, an announcement by China that their central bank planned to diversify foreign-exchange holding away from the dollar caused the dollar to drop in value on international currency markets. Since then, the dollar has hit a 20-month low against the euro. [/FONT]
[FONT=Palatino, Book Antiqua, Times New Roman, Georgia, Times]"This was almost an orchestrated announcement," Williams claimed. "Around Thanksgiving the markets were thinly traded. I'm not sure who was playing games there, but the signal was clearly heard." [/FONT]
[FONT=Palatino, Book Antiqua, Times New Roman, Georgia, Times]"You're dealing with mass psychology here," Williams argued. "The central bankers around the world know they are going to take a hit on their dollar holdings. None of the central bankers want to start a dollar panic, but none of the central bankers want to be the last out of the dollar, either." [/FONT]
[FONT=Palatino, Book Antiqua, Times New Roman, Georgia, Times]Williams explained that the Federal Reserve is in a bind. [/FONT]
[FONT=Palatino, Book Antiqua, Times New Roman, Georgia, Times]"Raising rates would kill any chance of avoiding a recession, but in terms of the dollar, we can't raise the rates fast enough when the dollar starts to slip quickly." [/FONT]
[FONT=Palatino, Book Antiqua, Times New Roman, Georgia, Times]Are we experiencing a dollar collapse? [/FONT]
[FONT=Palatino, Book Antiqua, Times New Roman, Georgia, Times]"Not yet," Williams answered. "I believe we're going to have a dollar collapse, but the Fed is going to do its best to slow play the dollar's decline in value, so that it takes a year or two for the dollar value to reach its low point." [/FONT]
[FONT=Palatino, Book Antiqua, Times New Roman, Georgia, Times]Williams explained the risk of collapse the dollar faces: [/FONT]
[FONT=Palatino, Book Antiqua, Times New Roman, Georgia, Times]"There will be a central bank, most probably in Asia, who will start the move away from the dollar and when it happens, you're going to see other central bankers covertly trying to follow. The move will magnify very quickly and it could become a full-fledged panic and a dollar collapse." [/FONT]
[FONT=Palatino, Book Antiqua, Times New Roman, Georgia, Times]The Fed is struggling right now to contain inflation and stimulate economic growth. All the Fed is doing right now with all their grand policy shifts is using a lot of propaganda and market massaging to try to prevent a financial panic." [/FONT]
[FONT=Palatino, Book Antiqua, Times New Roman, Georgia, Times]Recent reports have shown that U.S. gross domestic product growth slowed to 1.6% in the third quarter, the lowest in more than 3 years. [/FONT]
[FONT=Palatino, Book Antiqua, Times New Roman, Georgia, Times]Will a declining dollar help narrow the U.S. trade deficit with China? [/FONT]
[FONT=Palatino, Book Antiqua, Times New Roman, Georgia, Times]"You could take a 30 percent decline in the value of the dollar," Williams argued, "and it wouldn't make much of a dent in our trade deficit with China, not as long as Bush administration trade policy continues to one-sided in favor China." [/FONT]
[FONT=Palatino, Book Antiqua, Times New Roman, Georgia, Times]"The Fed is faced with an impossible circumstance with the trade and budget deficits being run by the Bush administration," Williams told WND, "and they are just playing games with the markets and the public by not publishing M3, the broadest measure of money supply and the best indicator we have of long-term activity." [/FONT]
[FONT=Palatino, Book Antiqua, Times New Roman, Georgia, Times]M3 is the broadest measure of the total money in the economy, including checking and savings accounts, cash, time deposits, and money-market funds. Economist Milton Friedman, one of the key economists contributing to the conservative theories that led to the development of "Reaganomics," argued that money supply is a key measure correlated both with economic growth and inflation. [/FONT]

 

I really wish I could give you all a copy of my book just so you could have a decent undersanding about the entire history of the monetary system, although this post is only brief, it has some very nice illustrations.

It is important to note that the private banks have always used the gold and silver standard to gain control of a monetary system, thereby reducing the substantive supply of precious metals and ushering in a fiat currency to replace it.

Be careful not to assume that returning to a gold standard will alleviate any symptoms of a failing economy: it is the private banks themselves that are the only true threat. Andrew Jackson once killed the banks, and if we were to once again rid ourselves of the private banking cartels, we would reap the benefits of true wealth, provided our Congress issues the only legal tender and authorizes banking institutions to act as clearing houses only.

The greatest tragedy is an inherant flaw in our own Constitution, permitting our Federal Government to borrow. This usury debt is the single greatest power in the world today, just as it has been for thousands of years. One must ask then, why we allowed this to occur in the first place. I cover that information as well, and much more in my book. I will try to get you all a copy online before summer 2007.

 

[FONT=Palatino, Georgia, Times New Roman, Times, serif][SIZE=+2]True deficit:
$3.5 trillion[/SIZE][/FONT]
<!-- end head --><!-- deck --> [FONT=Palatino, Georgia, Times New Roman, Times, serif][SIZE=+1]Analyst says coming Treasury report will document 'unsustainable' pace[/SIZE][/FONT]
<!-- end deck --> <hr size="1"> [SIZE=-1]Posted: December 14, 2006
1:00 a.m. Eastern

[/SIZE] [FONT=Palatino, Book Antiqua, Times New Roman, Georgia, Times] [/FONT] [FONT=Palatino, Book Antiqua, Times New Roman, Georgia, Times][FONT=Palatino, Times New Roman, Georgia, Times, serif] <!-- byline --> By Jerome R. Corsi
<!-- end byline --> <!--- copywrite only show on NON commentary pages as per joseph meeting 8/23/06 ------> [SIZE=-1] <!-- copyright --> © 2006 WorldNetDaily.com <!-- end copyright --> [/SIZE] [/FONT] [/FONT]
<!-- intelliTXT -->
<!-- begin bodytext --> [FONT=Palatino, Book Antiqua, Times New Roman, Georgia, Times]A report scheduled to be released by the Treasury Department tomorrow is expected to show the true deficit in the Bush administration's 2006 federal budget to be an astounding $3.5 trillion in the red, not $248.2 billion as previously reported. [/FONT][FONT=Palatino, Book Antiqua, Times New Roman, Georgia, Times]"The [COLOR=blue ! important][FONT=Palatino,Book Antiqua,Times New Roman,Georgia,Times][COLOR=blue ! important][FONT=Palatino,Book Antiqua,Times New Roman,Georgia,Times]Bush [/FONT][COLOR=blue ! important][FONT=Palatino,Book Antiqua,Times New Roman,Georgia,Times]administration[/FONT][/COLOR][/FONT][/COLOR][/COLOR] is running a federal budget deficit at an unsustainable, system-dooming pace of about $3.5 trillion a year, econometrician John Williams, who publishes the website Shadow Government Statistics, told WND. [/FONT]
[FONT=Palatino, Book Antiqua, Times New Roman, Georgia, Times]Williams' argument is fully validated in the Financial Report of the United States, a little-known report [COLOR=blue ! important][FONT=Palatino,Book Antiqua,Times New Roman,Georgia,Times][COLOR=blue ! important][FONT=Palatino,Book Antiqua,Times New Roman,Georgia,Times]Congress[/FONT][/FONT][/COLOR][/COLOR] has mandated that the Treasury Department publishes each year, reporting the [COLOR=blue ! important][FONT=Palatino,Book Antiqua,Times New Roman,Georgia,Times][COLOR=blue ! important][FONT=Palatino,Book Antiqua,Times New Roman,Georgia,Times]federal [/FONT][COLOR=blue ! important][FONT=Palatino,Book Antiqua,Times New Roman,Georgia,Times]budget[/FONT][/COLOR][/FONT][/COLOR][/COLOR] on a GAAP accounting basis, not on a cash accrual basis. [/FONT]
[FONT=Palatino, Book Antiqua, Times New Roman, Georgia, Times](Story continues below) [/FONT]
[FONT=Palatino, Book Antiqua, Times New Roman, Georgia, Times]<script type="text/javascript"><!-- google_ad_client = "pub-9952085791529017"; google_ad_width = 300; google_ad_height = 250; google_ad_format = "300x250_as"; google_ad_type = "text_image"; google_ad_channel =""; google_color_border = "FFFFFF"; google_color_bg = "FFFFFF"; google_color_link = "660000"; google_color_text = "000000"; google_color_url = "B3B3B3"; //--></script> <script type="text/javascript" src="http://pagead2.googlesyndication.com/pagead/show_ads.js"> </script><iframe name="google_ads_frame" src="http://pagead2.googlesyndication.com/pagead/ads?client=ca-pub-9952085791529017&dt=1166210010480&lmt=1166210009&format=300x250_as&output=html&url=http%3A%2F%2Fwww.worldnetdaily.com%2Fnews%2Farticle.asp%3FARTICLE_ID%3D53366&color_bg=FFFFFF&color_text=000000&color_link=660000&color_url=B3B3B3&color_border=FFFFFF&ad_type=text_image&ref=http%3A%2F%2Fwww.worldnetdaily.com%2F&cc=26&u_h=768&u_w=1024&u_ah=740&u_aw=1024&u_cd=32&u_tz=-300&u_his=40&u_java=true&u_nplug=20&u_nmime=99" marginwidth="0" marginheight="0" vspace="0" hspace="0" allowtransparency="true" frameborder="0" height="250" scrolling="no" width="300"></iframe> [/FONT]
[FONT=Palatino, Book Antiqua, Times New Roman, Georgia, Times]The 2006 edition of the Financial Report of the United States is due out tomorrow. [/FONT]
[FONT=Palatino, Book Antiqua, Times New Roman, Georgia, Times]"Typically, the Treasury reports the budget deficit on current accounts basis. That's why Treasury announced recently that the 2006 federal budget deficit was going to be $248.2 billion. But it is a gimmick," Williams claimed. [/FONT]
[FONT=Palatino, Book Antiqua, Times New Roman, Georgia, Times]"When we see the Treasury report on Friday we are probably going to find out that the real 2006 federal budget deficit is more like $3.5 trillion." [/FONT]
[FONT=Palatino, Book Antiqua, Times New Roman, Georgia, Times]Williams predicts, however, the mainstream media won't report it. [/FONT]
[FONT=Palatino, Book Antiqua, Times New Roman, Georgia, Times]"It's not the type of news Reuters, Bloomberg and the Wall Street Journal like to broadcast to investors and the American public," he said. "Besides, the financial press won't take the time and effort to analyze the figures and comb through the footnotes. The report is going to be released on Friday and most financial reporters aren't accountants." [/FONT]
[FONT=Palatino, Book Antiqua, Times New Roman, Georgia, Times]Why the huge discrepancy between the two figures? [/FONT]
[FONT=Palatino, Book Antiqua, Times New Roman, Georgia, Times]"The $248 billion federal budget deficit figure results from what basically amounts to a cash flow analysis," Williams explained. "On a cash basis, the Treasury takes all the tax revenue, including Social [COLOR=blue ! important][FONT=Palatino,Book Antiqua,Times New Roman,Georgia,Times][COLOR=blue ! important][FONT=Palatino,Book Antiqua,Times New Roman,Georgia,Times]Security[/FONT][/FONT][/COLOR] taxes, as current income. The trick is that Treasury essentially steals the money that comes in on Social Security taxes, without accounting for any offsetting Social Security liability. When you run your accounting that way, the Treasury gets to report a federal budget deficit that dramatically reduces the real figure." [/COLOR][/FONT]
[FONT=Palatino, Book Antiqua, Times New Roman, Georgia, Times]What's different about the anticipated 2006 Financial Report of the United States? [/FONT]
[FONT=Palatino, Book Antiqua, Times New Roman, Georgia, Times]"Congress a few years ago mandated that the Treasury had to report one report each year that used GAAP accounting," Williams told WND. "Then, when you figure in all liabilities including Social Security and Medicare, the real 2006 deficit is huge by comparison. What I expect to show up on Friday is a real federal budget deficit of $3.5 trillion or more, not the $248.2 billion earlier reported." [/FONT]
[FONT=Palatino, Book Antiqua, Times New Roman, Georgia, Times]"Even worse," Williams continued, "the U.S. Government's negative net worth widened to $49.4 trillion in 2005. For the first time, total government liabilities have topped $50 trillion, and the number is continuing to grow. The United States is bankrupt, whether the Bush administration wants to admit it or not." [/FONT]
[FONT=Palatino, Book Antiqua, Times New Roman, Georgia, Times]A quick study of the following table Williams has posted on his website shows the alarming nature of the Bush administration federal budget shortfalls when GAAP accounting methods are used and all Social Security and Medicare liabilities are fully realized. [/FONT]
<table align="center"> <tbody><tr> <td width="567">
Source: John Williams, Shadow Government Statistics, on ShadowStats.com</td> </tr> </tbody></table>
[FONT=Palatino, Book Antiqua, Times New Roman, Georgia, Times]How serious a problem are federal deficits of this magnitude? [/FONT]
[FONT=Palatino, Book Antiqua, Times New Roman, Georgia, Times]"A federal budget deficit in the trillions of dollars is beyond the reach of fiscal control," Williams answered. "Even if the federal government raised individual and corporate income taxes to 100 percent, simply confiscating every penny every business and person in the U.S. made, we would still have a federal deficit." [/FONT]
[FONT=Palatino, Book Antiqua, Times New Roman, Georgia, Times]"There are lots of people who know that the federal deficit is in the trillions," Williams continued. "The problem is that few dare sound the alarm. The magnitude of the budget deficit problem is just too enormous and neither political party has the courage to address the problem." [/FONT]
[FONT=Palatino, Book Antiqua, Times New Roman, Georgia, Times]Williams is clear about the coming danger. [/FONT]
[FONT=Palatino, Book Antiqua, Times New Roman, Georgia, Times]"The United States is bankrupt," he insisted. "With less than one-tenth of the actual deficit being reported each year, a cumulative negative net worth exceeding $50 trillion has built up in stealth to where the total obligations of the U.S. government are now more than four times our annual gross domestic product. [/FONT]
[FONT=Palatino, Book Antiqua, Times New Roman, Georgia, Times]"The Treasury numbers in the Financial Report of the United States are hard," Williams insisted, "and the doomsday is not far off. Still, the Treasury is going to report the numbers on a Friday and I don't expect you will hear much about it." [/FONT]
[FONT=Palatino, Book Antiqua, Times New Roman, Georgia, Times]Williams' website issues a dire warning to WND: [/FONT]

[FONT=Palatino, Book Antiqua, Times New Roman, Georgia, Times]"Indeed the unfolding fiscal nightmare likely will entail a U.S. hyperinflation and a resulting collapse in the value of the world's primary reserve currency, the dollar. When this starts to unravel it will unravel fast. I don't know whether it will be the dominant issue in the 2008 presidential election, but I believe it will be by 2012."[/FONT]​

[FONT=Palatino, Book Antiqua, Times New Roman, Georgia, Times]The Treasury Department confirmed to WND the 2006 Financial Report of the United States will be issued tomorrow at 11:00 a.m. Eastern time at a Treasury Department press conference. The Treasury Department declined to comment on the content of the report. [/FONT]
[FONT=Palatino, Book Antiqua, Times New Roman, Georgia, Times]When the report is released, Treasury Secretary Henry Paulsen and Federal Reserve chairman Ben Bernanke will still be in China. Just before Thanksgiving, China started a dollar sell-off by suggesting Beijing wanted to hold less than the current 70 percent of its $1 trillion in foreign exchange reserves in U.S. dollars. Paulsen and Bernanke plan to explore with China ways the U.S. can reduce the large and growing U.S. trade deficit. [/FONT]

 

Worse than Forecasted....Wow! Were ****ED!

[FONT=Palatino, Georgia, Times New Roman, Times, serif][SIZE=+2]Real U.S. shortfall: $4.6 trillion in red[/SIZE][/FONT]
<!-- end head --><!-- deck --> [FONT=Palatino, Georgia, Times New Roman, Times, serif][SIZE=+1]'Taxing 100% of all wages, salaries, corporate profits would not eliminate a deficit of this magnitude'[/SIZE][/FONT]
<!-- end deck --> <hr size="1"> [SIZE=-1]Posted: December 17, 2006
11:45 p.m. Eastern

[/SIZE] [FONT=Palatino, Book Antiqua, Times New Roman, Georgia, Times] [/FONT] [FONT=Palatino, Book Antiqua, Times New Roman, Georgia, Times][FONT=Palatino, Times New Roman, Georgia, Times, serif] <!-- byline --> By Jerome R. Corsi
<!-- end byline --> <!--- copywrite only show on NON commentary pages as per joseph meeting 8/23/06 ------> [SIZE=-1] <!-- copyright --> © 2006 WorldNetDaily.com <!-- end copyright --> [/SIZE] [/FONT] [/FONT]
<!-- intelliTXT -->
<!-- begin bodytext --> [FONT=Palatino, Book Antiqua, Times New Roman, Georgia, Times]The real 2006 federal budget deficit was $4.6 trillion, not a previously reported $248.2 billion, according to the 2006 Financial Report of the United States Government as released by the Treasury Department Friday. [/FONT]
[FONT=Palatino, Book Antiqua, Times New Roman, Georgia, Times]"The 2006 federal budget deficit of $4.6 trillion is $1.1 trillion more than the 2005 [COLOR=blue ! important][FONT=Palatino,Book Antiqua,Times New Roman,Georgia,Times][COLOR=blue ! important][FONT=Palatino,Book Antiqua,Times New Roman,Georgia,Times]federal [/FONT][COLOR=blue ! important][FONT=Palatino,Book Antiqua,Times New Roman,Georgia,Times]budget[/FONT][/COLOR][/FONT][/COLOR][/COLOR] deficit," econometrician John Williams, who publishes the website Shadow Government Statistics, told WND. "The [COLOR=blue ! important][FONT=Palatino,Book Antiqua,Times New Roman,Georgia,Times][COLOR=blue ! important][FONT=Palatino,Book Antiqua,Times New Roman,Georgia,Times]Bush [/FONT][COLOR=blue ! important][FONT=Palatino,Book Antiqua,Times New Roman,Georgia,Times]administration[/FONT][/COLOR][/FONT][/COLOR][/COLOR] is in an untenable situation with a budget deficit this dramatic. Taxing 100 percent of all wages, salaries, and corporate profits would not eliminate a deficit of this magnitude, and cutting Social [COLOR=blue ! important][FONT=Palatino,Book Antiqua,Times New Roman,Georgia,Times][COLOR=blue ! important][FONT=Palatino,Book Antiqua,Times New Roman,Georgia,Times]Security[/FONT][/FONT][/COLOR][/COLOR] and Medicare spending is politically impossible." [/FONT]
[FONT=Palatino, Book Antiqua, Times New Roman, Georgia, Times]In his subscription newsletter, Williams comments that the GAAP accounting numbers reported in the 2006 Treasury report show that, "the actual deficit number was nearly 19-times the size of the gimmicked 'official' deficit for 2006 of $248 billion. Total obligations were 4.2-times annual U.S. gross domestic product (GDP)." [/FONT]
<table align="center"> <tbody><tr> <td width="581">
</td> </tr> </tbody></table>
[FONT=Palatino, Book Antiqua, Times New Roman, Georgia, Times]The difference between the $248 billion "official" budget deficit numbers and the $4.6 trillion budget deficit reported in the 2006 Financial Report of the United [COLOR=blue ! important][FONT=Palatino,Book Antiqua,Times New Roman,Georgia,Times][COLOR=blue ! important][FONT=Palatino,Book Antiqua,Times New Roman,Georgia,Times]States [/FONT][COLOR=blue ! important][FONT=Palatino,Book Antiqua,Times New Roman,Georgia,Times]Government[/FONT][/COLOR][/FONT][/COLOR][/COLOR] is that the official budget deficit is calculated on a cash basis, where all tax receipts, including Social Security tax receipts, are used to pay government liabilities as they occur. [/FONT]
[FONT=Palatino, Book Antiqua, Times New Roman, Georgia, Times]The calculations in the 2006 Financial Report of the United States Government are calculated on a GAAP basis ("Generally Accepted Accounting Practices") that includes year-for-year changes in the net present value of unfunded liabilities in social insurance programs such as Social Security and Medicare. [/FONT]
[FONT=Palatino, Book Antiqua, Times New Roman, Georgia, Times]Under cash accounting, the government makes no provision for future Social Security and Medicare benefits in the year in which those benefits accrue. [/FONT]
[FONT=Palatino, Book Antiqua, Times New Roman, Georgia, Times]"Truthfully," Williams points out, "there is no Social Security 'lock-box.' There are no funds held in reserve today for Social Security and Medicare obligations that are earned each year. It's only a matter of time until the public realizes that the government is truly bankrupt and no taxes are being held in reserve to pay in the future the Social Security and Medicare benefits taxpayers are earning today." [/FONT]
[FONT=Palatino, Book Antiqua, Times New Roman, Georgia, Times](Story continues below) [/FONT]
[FONT=Palatino, Book Antiqua, Times New Roman, Georgia, Times]<script type="text/javascript"><!-- google_ad_client = "pub-9952085791529017"; google_ad_width = 300; google_ad_height = 250; google_ad_format = "300x250_as"; google_ad_type = "text_image"; google_ad_channel =""; google_color_border = "FFFFFF"; google_color_bg = "FFFFFF"; google_color_link = "660000"; google_color_text = "000000"; google_color_url = "B3B3B3"; //--></script> <script type="text/javascript" src="http://pagead2.googlesyndication.com/pagead/show_ads.js"> </script><iframe name="google_ads_frame" src="http://pagead2.googlesyndication.com/pagead/ads?client=ca-pub-9952085791529017&dt=1166465334832&lmt=1166465334&format=300x250_as&output=html&url=http%3A%2F%2Fwww.worldnetdaily.com%2Fnews%2Farticle.asp%3FARTICLE_ID%3D53413&color_bg=FFFFFF&color_text=000000&color_link=660000&color_url=B3B3B3&color_border=FFFFFF&ad_type=text_image&ref=http%3A%2F%2Fwww.worldnetdaily.com%2F&cc=26&u_h=768&u_w=1024&u_ah=740&u_aw=1024&u_cd=32&u_tz=-300&u_his=30&u_java=true&u_nplug=20&u_nmime=99" marginwidth="0" marginheight="0" vspace="0" hspace="0" allowtransparency="true" frameborder="0" height="250" scrolling="no" width="300"></iframe> [/FONT]
[FONT=Palatino, Book Antiqua, Times New Roman, Georgia, Times]Calculations from the 2006 Financial Report of the United States Government also show that the GAAP negative net worth of the federal government has increased to $53.1 trillion, while the total federal obligations under GAAP accounting now total $54.6 trillion. [/FONT]
[FONT=Palatino, Book Antiqua, Times New Roman, Georgia, Times]"The Treasury is right in that Social Security and Medicare must be shown as liabilities on the federal balance sheet in the year they accrue," Williams argues. "To do otherwise is irresponsible, nothing more than an attempt to hide the painful truth from the American public. The public has a right to know just how bad off the federal government budget deficit situation really is, especially since the situation is rapidly spinning out of control." [/FONT]
[FONT=Palatino, Book Antiqua, Times New Roman, Georgia, Times]"The federal government is bankrupt," Williams explained to WND. "In a post-Enron world, if the federal government were a corporation such as General Motors, the president and senior Treasury officers would be in federal penitentiary." [/FONT]
[FONT=Palatino, Book Antiqua, Times New Roman, Georgia, Times]In a letter included in the 2006 Financial Report of the United States Government, David M. Walker, the comptroller general of the United States, commented on the $53 trillion federal government GAAP accounted negative net worth by noting, "This translates to a current burden of about $170,000 per American or approximately $440,000 per American household." [/FONT]
[FONT=Palatino, Book Antiqua, Times New Roman, Georgia, Times]Remarkably, the U.S. Government Accountability Office refused to certify or render an opinion on the consolidated financial statements contained in the 2006 Financial Report of the United States Government, noting serious financial management problems at the Department of Defense, the federal government's inability to adequately account for and reconcile intragovernmental activity and balances between federal agencies, and the federal government's ineffective process for preparing the consolidated financial statements. [/FONT]
[FONT=Palatino, Book Antiqua, Times New Roman, Georgia, Times]In his letter, David Walker commented that until these financial reporting problems were resolved within the federal government, the problems outlined in the audit report "will continue to have adverse implications for the federal government and American taxpayers." [/FONT]
[FONT=Palatino, Book Antiqua, Times New Roman, Georgia, Times]"That's an understatement," Williams told WND. [/FONT]
[FONT=Palatino, Book Antiqua, Times New Roman, Georgia, Times]"What the comptroller of the United States is telling us is that as bad as a $4.6 trillion federal budget deficit and a $53.1 trillion GAAP negative net worth are today, the situation with the Bush administration federal budget deficit might even be worse yet if the government’s overall bad accounting procedures could be fixed. With truly accurate GAAP reporting by the various administrative agencies, the 2006 financial report of the federal government would have shown even larger deficits and a larger negative net worth, hard as that may be to imagine." [/FONT]

 

If any of us did that, we would be declared backrupt and wind up in prison or doing community service for lentil soup and a 5X8 four man room.