We have a massive, misunderstood debt problem. Income tax receipts are roughly $900 billion a year. Corporate taxes are roughly $200 billion annually. That’s $1.1 trillion in tax revenue. Our current government expenditure is $3.5 trillion. Even if you doubled tax revenue, we would still be facing a $1.3 trillion deficit.
“Wait a minute,” you say. “How can that be? Doesn’t the mainstream media report that our deficit is only around $1 trillion per year right now?” Yes, that’s what they report. But that’s because the government counts all $850 billion of payroll taxes (Medicare and Social Security) as current income. It’s not. Those taxes are supposed to be funding the future liabilities of those programs, but we’re spending all that money now. If a private corporation did the same thing, its executives would all go to jail.
Oil runs the world. It’s a scarce resource with limited availability. This is a problem.
America is shooting itself in the foot via foreign policy. The trillions spent on our military conquests actually act to subsidize the price of oil and assure its availability at a slightly lower price. This proves detrimental to the long term health of America. If the natural market was allowed to allocate prices and our government didn’t continually intervene in the oil markets, a viable alternative might finally be seen. Right now, the false prices act to neglect the free market and stifle alternative growth. A truly free market is the only hope for future energy independence, and as of now, it does not exist.
When the Federal Reserve and subsequent commercial banks create artificial money, in the form of a loan (to government or private interests), they only create the principle – not the interest needed to repay the entire loan. The interest required to discharge that debt MUST come from outside the transaction that created the debt in the first place. And that’s how the ever-expanding, wealth-siphoning Ponzi scheme gets started, and also why it is a one-way street to oblivion and bankruptcy with no possible good end (to all but the very wealthiest and most insulated on the banking end). The interest to service all prior debt ALWAYS comes from principle that is created in the form of new debts – the interest of which must be repaid from yet more “principle-only-creating” debts – the aggregate of which MUST expand, and can NEVER be fully repaid, the end game of which is a forced default and MASSIVE IMPLOSION on the part of the entire Ponzi scheme, once it is physically incapable of further expansion, for whatever reason.