September 22, 2008
Let’s climb aboard the wayback machine and travel to 1999. It is the end of the Clinton administration and U.S. Treasury Secretary Larry Summers is ebullient. He claims for “first time in 25 years, the US Government plans to reduce the size of the national debt,” according to the BBC. “The news represents a transformation of the US budget position, after struggling with huge deficits for most of the last decade.”
In order to demonstrate this fantasy, the Congressional Budget Office releases a chart. It supposedly projects debt reduction upon the magical appearance of surpluses, sort of like manna falling from heaven. It is a chart appropriate for a new edition of Brothers Grimm fairy tales.
“The proposal comes as Democrats and Republicans squabble over what to do with the growing US budget surplus,” the BBC continues.
Last year, the government had a surplus of $69.2 billion, a total which is likely to be exceeded this year. It is the first time since 1957 that the US has had two consecutive years of budget surplus.
Official projections suggest trillions of dollars in budget surpluses over the next 15 years, boosted by a strong economy and strict controls on spending.
Actually, if we invert the chart we get a better idea of what really happened. Moreover, the Clinton White House and the Treasury, led by the free trader — as in unrestrained and unchecked transnational corporate looting — and World Bank globalist Larry Summers, were blowing smoke out of a certain orifice. It was all smoke and mirrors, designed to fool the easily fooled public, that is to say those bothering to pay attention.
Clinton said he was paying down the debt and his scheme would continue to do so. In fact, the national debt continued to go up like a roman candle. Consider the following chart, produced by U.S. Treasury.
National Debt Deficit FY1993 09/30/1993 $4.411488 trillion FY1994 09/30/1994 $4.692749 trillion $281.26 billion FY1995 09/29/1995 $4.973982 trillion $281.23 billion FY1996 09/30/1996 $5.224810 trillion $250.83 billion FY1997 09/30/1997 $5.413146 trillion $188.34 billion FY1998 09/30/1998 $5.526193 trillion $113.05 billion FY1999 09/30/1999 $5.656270 trillion $130.08 billion FY2000 09/29/2000 $5.674178 trillion $17.91 billion FY2001 09/28/2001 $5.807463 trillion $133.29 billion
Clinton never produced a surplus, as die hard Democrats like to claim, thus the globalist Summers’ projections were pure nonsense. “As can clearly be seen, in no year did the national debt go down, nor did Clinton leave President Bush with a budget surplus that Bush subsequently turned into a deficit,” writes the Lexta website. “As is usually the case in claims such as this, it has to do with Washington doublespeak and political smoke and mirrors.”
When Clinton (and others) said that he had paid down the national debt, that was patently false — as can be seen, the national debt went up every single year. What Clinton did do was pay down the public debt — notice that the claimed surplus is relatively close to the decrease in the public debt for those years. But he paid down the public debt by borrowing far more money in the form of intergovernmental holdings.
How did Clinton make it look like he lorded over a surplus? He took the money from intergovernmental holdings, more specifically Social Security. As the chart below demonstrates, the public debt went down and the intergovernmental holdings went up each year by a far greater amount and the total national debt (which is public debt + intergovernmental holdings) went up. It was a slimy premeditated lie that went over big in the corporate media at the time. Democrats to this day insist Clinton created a surplus, only to be squandered by Bush.
FY1997 09/30/1997 $3.789667T $1.623478T $5.413146T FY1998 09/30/1998 $69.2B $3.733864T $55.8B $1.792328T $168.9B $5.526193T $113B FY1999 09/30/1999 $122.7B $3.636104T $97.8B $2.020166T $227.8B $5.656270T $130.1B FY2000 09/29/2000 $230.0B $3.405303T $230.8B $2.268874T $248.7B $5.674178T $17.9B FY2001 09/28/2001 $3.339310T $66.0B $2.468153T $199.3B $5.807463T $133.3B
“The net effect was that the national debt most definitely did not get paid down because we did not have a surplus. The government just covered its deficit by borrowing money from Social Security rather than the public,” concludes Lextra.
So, the lesson here is that government not only steals — in the above case, from Social Security — but it will invariably tell big whopper lies to make you think things are peachy keen when in fact they are just the opposite.
For instance, the Banker Party expects us to believe bailing out their criminal mega-klepto friends will save the economy. In fact, all this will do is add an immense weight to the national debt, already straining at the seams, due in large part to neocon wars based on lies and al-Qaeda fairy tales. Sooner or later — and likely sooner before later — the American people will be reduced to poverty under the strain of significantly increased taxation (coupled with crippling hyper-inflation) and thus the predatory government will look to the holders of U.S. dollars and this will completely destroy the currency.
Of course, this path to destruction was sketched out some time ago. After the dollar is destroyed we will be told our only choice will be to create a new transnational currency, most likely the Amero, and in order to survive and prosper we must merge with Canada and Mexico into a North American Union. By the time this scam is foisted on the American people, they will be so desperate they will accept almost anything, as Henry Kissinger knew when he told his globalist buddies at a Bilderberg meeting in 1992:
Today Americans would be outraged if UN troops entered Los Angeles to restore order; tomorrow they will be grateful! This is especially true if they were told there was an outside threat from beyond, whether real or promulgated, that threatened our very existence. It is then that all people of the world will plead with world leaders to deliver them from this evil. The one thing every man fears is the unknown. When presented with this scenario, individual rights will be willingly relinquished for the guarantee of their well being granted to them by their World Government.