Monday, May 28, 2012
Clint Richardson details California’s Comprehensive Annual Financial Report (CAFR) to reveal $577 billion in Californian taxpayers’ investments. This public evidence makes Governor Brown’s claim of a ~$16 billion budget deficit with no option than “austerity” a criminal lie of omission. This is similar if the governor claimed the public checking account didn’t have enough money for our children’s schools while he covered-up a savings account with over 30 times the claimed shortage.
Clint notes on page 107 of California’s CAFR that the $6 billion annual interest cost and $164 billion in state debt are also cover-ups when contrasted with taxpayers’ investments. The criminal economic fraud of the 1% expands with cover-ups of the policy options to issue its own credit and money to directly pay for public goods and services.
These facts at the state level in California are repeated by the two main political parties’ “leadership” in all states (explore here). They also reveal the US national debt as similar criminal fraud. Here are three simple points to explain:
- The US does not have a money supply; we have its Orwellian opposite as a debt supply. This is because the US leading banks won legal right through passage of the 1913 Federal Reserve Act to have private banks and the Fed create debt for what we use as money, and then charge the 99% for its use.
- The policy choice of a debt supply compounded with interest causes ever-increasing aggregate debt that can never be repaid. It can’t be repaid because this is what we use for money. The US national debt now pushing $16 trillion has a gross annual interest payment over $400 billion a year; ~$4,000 per US family of $50,000 annual income (if your household earns $100,000, then your gross annual interest payment is ~$8,000 every year).
- Monetary reform creates debt-free money that extinguishes the debt (details here), and allows government to become employer of last resort for infrastructure investment (hard and soft). This creates full-employment, optimal infrastructure, and falling prices because infrastructurehistorically creates more value to the economy than cost. Credit reform allows for public loans (interest directly pays for public goods/services) as another monetary tool for stable money supply (credit reform details here).