Brady's power-point on Public Debt

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Brady's power-point on Public Debt

  1. 1. OverviewHello this is the overview page for this presentation.In this presentation I want to showcase the evidence that I’ve come across thatsupports the main thesis and which has influenced the modified sub-thesis. Parts:OverviewA - Without public debt what happens?B - Who’s holding all the public debt?C - Why government growth would be much more difficult without debt.Main thesis:• Most of what the government does that is immoral would be impossible without fiat currency.Sub-thesis:• It is impossible to sustain the IMC (industrial military complex) at the size and power it is now without fiat currency.• Growth of the IMC is much more difficult without fiat currency.
  2. 2. A. Without public debt, what happens?• What happens is that all current aspects of the government must shrink by an average of 1/3. Take 2011 for example:
  3. 3. A. Without public debt, what happens? • This is the distribution of all the actual money spent in 2011 by the US government.http://www.usgovernmentspending.com/federal_budget_actual
  4. 4. A. Without public debt, what happens? • Here is the total: 3.6 trillion dollars with the most being spent on defence at nearly 900 billion dollars. 3.6 trillionhttp://www.usgovernmentspending.com/federal_budget_actual
  5. 5. A. Without public debt, what happens? • The amount of this 3.6 trillion total which was paid for through debt was over a third at 1.3 trillion. 1.3 trillionhttp://www.usgovernmentspending.com/federal_budget_actual
  6. 6. So without that 1.3 trillion dollars of debt, what happens?• Well at least a third of the government must be cut. You can guestimate whereyou think it would be cut, but I think it’s fair to guess, given the lack of information on thesubject, that it would be cut pretty evenly across the board.• Rough estimation: If the Military Industrial complex were cut by a third, it could be said tosave maybe 1/3 of the lives it takes each year.
  7. 7. B. Who’s holding all the public debt that makes this happen?
  8. 8. B. Who’s holding all the public debt that makes this happen?As you can see each year, the government accumulates more and more debt that’ssummed up in 2011 at just under 15 trillion. Currently, as of September 15th, it’s just over16trillion (http://www.brillig.com/debt_clock/) (http://www.usdebtclock.org/).
  9. 9. B. Who’s holding all the public debt that makes this happen?This is useful to look at because by using this total, we can get an idea of where theaccumulated 16 trillion dollars of debt has come from.
  10. 10. B. Who’s holding all the public debt that makes this happen? Biggest Holders of US Government Debt By Paul Toscano | CNBC – Fri, Feb 3, 2012 8:48 AM EST http://finance.yahoo.com/news/biggest-holders-of-us-gov-t-debt.html1. Federal Reserve and Intergovernmental Holdings U.S. debt holdings: $6.328 trillion2. China U.S. debt holdings: $1.132 trillion3. Other Investors/Savings Bonds U.S. debt holdings $1.107 trillion4. Japan U.S. debt holdings: $1.038 trillion5. Pension Funds U.S. debt holdings: $842.2 billion
  11. 11. B. Who’s holding all the public debt that makes this happen? Biggest Holders of US Government Debt By Paul Toscano | CNBC – Fri, Feb 3, 2012 8:48 AM EST1. Federal Reserve and Intergovernmental Holdings U.S. debt holdings: $6.328 trillion How many wars can this fund? Iraq @ 0.807(T): 7.8 wars2. China Afghanistan @ 0.566(T): 11.2 wars U.S. debt holdings: $1.132 trillion3. Other Investors/Savings Bonds U.S. debt holdings $1.107 trillion4. Japan U.S. debt holdings: $1.038 trillion5. Pension Funds U.S. debt holdings: $842.2 billion
  12. 12. B. Who’s holding all the public debt that makes this happen? Biggest Holders of US Government Debt By Paul Toscano | CNBC – Fri, Feb 3, 2012 8:48 AM EST1. Federal Reserve and Intergovernmental Holdings U.S. debt holdings: $6.328 trillion How many wars can this fund? Iraq @ 0.807(T): 7.8 wars2. China Afghanistan @ 0.566(T): 11.2 wars U.S. debt holdings: $1.132 trillion Central Banks: 8.498 trillion3. Other Investors/Savings Bonds (more than ½) U.S. debt holdings $1.107 trillion4. Japan U.S. debt holdings: $1.038 trillion5. Pension Funds U.S. debt holdings: $842.2 billion
  13. 13. Part C – Why government growth would be much more difficult without debt.• The main reason for this is that people don’t have much to any incentive to stop the growth of the government when the increase in spending is done through debt. People’s price of living goes up because the central banks are debasing the currency to buy most of the debt and their children are being born into an impossible amount of debt. But this does not make the majority of the population riot. However in 2011, if the spending was paid for directly through taxation , their taxes would have to be raised by 56.5% of what they are now to accommodate the increase from 2.3 trillion in tax revenue the 3.6 trillion spent. I can see the riots happening now.• The government knows this because we can observe that, in the last 6 years, almost no new tax based spending has been done even though total fiscal spending has risen nearly 1 trillion per year.
  14. 14. Part C – Why government growth would be much more difficult without debt.• The main reason for this is that people don’t have much to any incentive to stop the growth of the government when the increase in spending is done through debt. People’s price of living goes up because the central banks are debasing the currency to buy most of the debt and their children are being born into an impossible amount of debt. But this does not make the majority of the population riot. However in 2011, if the spending was paid for directly through taxation , their taxes would have to be raised by 56.5% of what they are now to accommodate the increase from 2.3 trillion in tax revenue the 3.6 trillion spent. I can see the riots happening now.• The government knows this because we can observe that, in the last 6 years, almost no new tax based spending has been done even though total fiscal spending has risen nearly 1 trillion per year. Here’s why:
  15. 15. If we can look at this we can see that from 2006 to 2011, total spending has increased by almost 1 trillion. Lets take away what we don’t need to see.http://www.usgovernmentspending.com/federal_budget_actual
  16. 16. If we can look at this we can see that from 2006 to 2011, total spending has increased by almost 1 trillion. Lets take away what we don’t need to see.http://www.usgovernmentspending.com/federal_budget_actual
  17. 17. Now you can see that just as the rate of spending has increased by just under a trillion, so exactly has the rate of deficit! So what this means is that in the past 6 years, all the Increase in spending has been accounted for by increasing the rate of deficit. It’s like going into a store with the same amount of cash as before but now spending 30% more by making up the difference with your visa. Deficit financing, through debt bought largely from the printing of fiat currency by criminal Institutions such as the federal reserve, has made it possible for government to grow and sustain itself at the size that it is now as well as make it possible to continual growth in the future.http://www.usgovernmentspending.com/federal_budget_actual
  18. 18. What does an increase in a trillion dollars look like? (not very important but I found it cool)http://www.usgovernmentspending.com/federal_budget_actual
  19. 19. http://www.pagetutor.com/trillion/index.htmlWell start with a $100 dollar bill. Currently the largest U.S. denomination in general circulation.Most everyone has seen them, slightly fewer have owned them. Guaranteed to make friendswherever they go.
  20. 20. http://www.pagetutor.com/trillion/index.htmlA packet of one hundred $100 bills is less than 1/2" thick and contains $10,000. Fits in yourpocket easily and is more than enough for week or two of shamefully decadent fun.
  21. 21. http://www.pagetutor.com/trillion/index.htmlBelieve it or not, this next little pile is $1 million dollars (100 packets of $10,000). You could stuffthat into a grocery bag and walk around with it.
  22. 22. http://www.pagetutor.com/trillion/index.htmlWhile a measly $1 million looked a little unimpressive, $100 million is a little more respectable.It fits neatly on a standard pallet...
  23. 23. http://www.pagetutor.com/trillion/index.htmlAnd $1 BILLION dollars... now were really getting somewhere...
  24. 24. http://www.pagetutor.com/trillion/index.htmlNext well look at ONE TRILLION dollars. This is that number weve been hearing so much about.What is a trillion dollars? Well, its a million million. Its a thousand billion. Its a one followed by12 zeros.You ready for this?Its pretty surprising.
  25. 25. http://www.pagetutor.com/trillion/index.htmlNext well look at ONE TRILLION dollars. This is that number weve been hearing so much about.What is a trillion dollars? Well, its a million million. Its a thousand billion. Its a one followed by12 zeros.You ready for this?Its pretty surprising.
  26. 26. http://www.pagetutor.com/trillion/index.htmlNext well look at ONE TRILLION dollars. This is that number weve been hearing so much about.What is a trillion dollars? Well, its a million million. Its a thousand billion. Its a one followed by12 zeros.You ready for this?Its pretty surprising. That’s on top of the original 2.6 trillion back in 2006.
  27. 27. http://www.pagetutor.com/trillion/index.htmlNext well look at ONE TRILLION dollars. This is that number weve been hearing so much about.What is a trillion dollars? Well, its a million million. Its a thousand billion. Its a one followed by12 zeros.You ready for this?Its pretty surprising. That’s on top of the original 2.6 trillion back in 2006. How much better are you enjoying your government services now 6 years later in 2012 when THIS^ has been added?...uh not much?...really?

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